Sourcing Agent Guide

1. What does a China sourcing agent actually do?

A China sourcing agent (or sourcing company) represents the buyer in China. Typical responsibilities include:

• Product & supplier research
  • Search for manufacturers that can make your product
  • Compare prices, MOQs, production capacity, certifications, etc.
• Supplier vetting
  • Check business licenses, factory size, ownership, export history
  • Review past projects and reference customers where possible
• Sampling & product development support
  • Request, consolidate, and ship samples
  • Help refine specs, packaging, and labeling
• Price & terms negotiation
  • Negotiate unit price, tooling cost, MOQs, lead time, payment terms
• Order management & quality control
  • Follow up production, perform inspections (in-house or via 3rd party)
  • Coordinate rework or replacements if defects appear
• Logistics coordination
  • Arrange consolidation, export documents, and shipping (courier, air, sea, rail)

A single freelancer might only handle basic sourcing and communication. A full-service sourcing company can cover the entire chain from factory to final destination.

2. Do I really need a sourcing agent?

Not every buyer needs an agent. It depends on your experience, order size, and risk tolerance.

You might not need a sourcing agent if:

• You already have trusted factories in China
• Your products are simple and you’re comfortable handling issues yourself
• You have Chinese-speaking staff or a local office
• You place only occasional, very small orders and can accept higher risk

You probably do benefit from a sourcing agent if:

• You’re new to importing or to China
• Your product involves multiple components, strict standards, or certifications
• You buy from several different suppliers and want to consolidate
• You don’t have time or expertise to manage quality control and logistics
• A production mistake would cause serious financial loss or damage your brand

Think of an agent as a local operations team. If the value of avoiding one serious mistake is higher than the agent’s fee, working with one often makes sense.

3. How do China sourcing agents charge—and what’s reasonable?

Most agents use one (or a mix) of these models:

1. Percentage of order value
   • Common range: 3%–10% of the product value
   • Higher percentages for small, complex, or high-risk projects
   • Lower percentages for large, repeat orders
2. Flat project fee
   • Fixed amount for tasks like: product research, factory audit, or one-time sourcing
3. Monthly retainer / dedicated staff
   • A set fee for a full-time or part-time agent to manage ongoing projects
   • Often used by high-volume buyers and aggregators
4. Hidden mark-ups (what you should avoid)
   • Agent hides the factory’s real price and adds their own margin
   • You only see a single “all-in” product price

What’s fair?

• Any model can be fair if it’s transparent.
• Ask to see clear quotations and understand exactly how the agent is paid.
• A slightly higher, fully transparent fee is usually better than a “free” agent who makes money secretly from the factory.

4. How can I tell if a sourcing agent really represents me, not the factory?

This is one of the most important questions—and the main reason buyers hesitate.

Signs an agent is buyer-focused and transparent:

• They are willing to disclose supplier names once cooperation is confirmed
• Money for products can be paid directly to the factory (or you at least see the factory’s invoice and PO)
• They can show multiple quotes and explain differences in price, specs, and risk
• Inspection reports include photos from the actual production line, not just catalog images
• They push back on factories about quality issues instead of telling you to “accept it”

Red flags that suggest the agent may be more loyal to the factory:

• Refuses to share any supplier details, even after long-term cooperation
• Insists all payments must go only through them with no breakdown
• Always recommends the same supplier, no matter your product or target price
• Becomes defensive when you ask about commissions or kickbacks

It’s normal for factories to offer small commissions to agents, but a professional sourcing company should prioritize your interests and be open about how they earn.

5. What should a good sourcing process look like from start to finish?

While every project is different, a solid China sourcing workflow usually includes these steps:

1. Project Brief
   • You share product specs, target price, quality expectations, certifications, packaging, and timeline.
2. Supplier Research & Shortlist
   • Agent searches and narrows down to a shortlist (for example 3–5 factories)
   • You receive a comparison sheet with prices, MOQs, lead times, and comments.
3. Sampling & Refinement
   • Samples are ordered, consolidated, and shipped to you
   • You give feedback; the agent communicates changes to the factory
4. Final Quotation & Purchase Order
   • Unit price, tooling costs, payment terms, and delivery time are locked in
   • Deposit is paid to start production
5. Production Follow-Up & Quality Control
   • The agent checks raw materials or first finished pieces where needed
   • A pre-shipment inspection (AQL or 100% check) is carried out
   • Any defects are handled with the factory before goods leave China
6. Logistics & Documentation
   • Cargo is consolidated, packed, and shipped (courier, air, sea, or rail)
   • Agent coordinates export docs, labels, and, if needed, DDP or FBA arrangements
7. After-Sales Support
   • If you discover quality issues later with proof, the agent helps negotiate rework, discounts, or replacements for future orders

If the process your agent proposes skips most of these steps, or everything feels vague, that’s a sign to ask more questions.

Final Checklist When Choosing a China Sourcing Agent

Before you decide, ask yourself:

• Do I clearly understand how this agent makes money?
• Do they provide sample reports, case studies, or references?
• Is their proposed process similar to the one above?
• Are they responsive and clear in English (or your language)?
• Does working with them reduce my risk enough to justify the cost?

Use this guide and checklist with any China sourcing agent you talk to—so you can make a calm, informed decision that fits your budget, product, and growth plans.