A sourcing agent sits between you and a factory you have never met. That position is the whole point: someone on the ground who speaks the language, knows the industrial clusters and can walk onto the production line. It is also the risk. An agent who is quietly paid by the factory has every reason to send your order to whoever pays best, not whoever makes your product best.
You can tell the difference before you sign. This guide covers what an agent should do, how agents charge, the questions that sort good ones from bad, and when you don’t need one at all.
What a sourcing agent does
A full-service agent covers the stages where buyers lose money:
- Finding factories: searching beyond marketplace listings, in the right manufacturing cluster.
- Checking them: business licence, factory or trading company, capacity, export experience.
- Comparing quotes: on the same specification, so you see the real cost of an order.
- Samples: checking them against your spec before they reach you.
- Contract and production: price, specification, tooling ownership and dates in writing, then follow-up inside the factory.
- Inspection: checking finished goods before you pay the balance.
- Shipping: consolidating suppliers, booking freight and preparing export documents.
You can buy these as a package or one at a time. Many buyers who already have a supplier only need checking, inspection and shipping.
Do you need one?
Probably not if you are buying a standard product in small quantities, through a marketplace with payment protection such as Alibaba Trade Assurance, and you can arrange an independent inspection yourself.
Probably yes if any of these apply:
- the product is custom or private label, with tooling, packaging or your own specification;
- it is a first order with a new supplier and the deposit is more than you can afford to lose;
- the goods need UK or EU compliance: CE or UKCA marking, test reports, labels, a responsible person;
- you are buying from several suppliers and want one shipment;
- nobody on your team speaks Mandarin or can visit.
How sourcing agents charge
| Fee model | How it works | Watch for |
|---|---|---|
| Commission | A percentage of the product value, typically 3% to 10%, lower on bigger orders | Is it charged on the factory price you can see, or on a price the agent sets? |
| Flat fee per project | A fixed price for a search, a sample round or a full project | What happens if the first shortlist doesn’t work out |
| Per job | Audits and inspections priced per inspector day, often around US$250 to US$400 | Travel charges and what the report includes |
| “Free” | No fee to you | The agent is paid by the factory, through a margin built into your unit price |
The fee model matters less than whether you can see the factory’s own price. If you can, you know exactly what you pay for the agent’s work. If you can’t, the fee on the invoice may be the smaller part of what the agent earns.
Eight questions to ask before you sign
Ask these in writing. A good agent answers each one plainly.
- Will I see the factory’s name and the factory’s own price? You should, before you place the order.
- Do you take commissions, rebates or fees from factories? Ask for the answer in writing. Any “yes” changes who the agent works for.
- Who carries out inspections, and do they report to me? The inspector should work for you, not the factory.
- Where is your team, and who will visit the factory? Ask for names and the cities they work from.
- What is your Chinese company name and registration code? Then check it on the national registry.
- Can I see a sample report? A redacted inspection report or supplier audit shows the standard you’ll get.
- How do payments flow? Ideally you pay the factory directly, or the agent pays only on your instruction against the contract.
- Who owns the contract and the tooling? Moulds you pay for should be yours in writing, with the factory address named.
Red flags
- The agent won’t name the factory until you have paid, or ever.
- Quotes arrive as one unit price with no breakdown, and the agent can’t explain the parts.
- The agent says its service is free.
- You can’t find the company on China’s national registry, or the name doesn’t match the bank account.
- Inspections are done by “our factory partner”, or the reports have no photos.
- Pressure to pay quickly, or to pay a personal account.
Agent, trading company, marketplace or do it yourself?
| Option | You get | You give up | Suits |
|---|---|---|---|
| Sourcing agent | Someone on your side in China, factory access, inspections | A fee | Custom products, first orders, UK/EU compliance |
| Trading company | One supplier for many products, low minimums | The factory’s identity and its price | Small mixed orders of standard goods |
| Marketplace with payment protection | Speed, a dispute process | Little control of quality before shipment | Standard products, small trial orders |
| Do it yourself | Full control, no fee | Time, travel and the language | Buyers with staff or frequent trips to China |
Many buyers combine them: a marketplace to find candidates, an agent to check them and inspect the order.
How we answer the eight questions
We are a sourcing agent, so here are our answers, with links you can check:
- Factory and price: you see the factory’s name and its own price, and our fee is a separate line. See our fees.
- Factory commissions: we don’t take commissions, rebates or fees from factories. We say so in writing.
- Inspection before payment: the balance is usually paid only after the inspection passes.
- Where we are: a team of 55 in Shenzhen, Changsha and Zhengzhou. Meet the team.
- Registration: Shenzhen Royal International Logistics Co., Ltd., unified social credit code 91440300595694653B. Company details.
- Inspections: our inspectors report to you, with photos of every finding. Quality inspection.
- Payments: we pay factories only on your instruction, against the schedule in your contract. Production management.
The bottom line
Hire an agent you can check: a registered company in China, people who visit factories, published fees, and a written answer on factory commissions. Insist on seeing the factory’s name and price, an inspection before you pay the balance, and tooling ownership in the contract. If an agent avoids any of those, keep looking, even if it’s cheaper.
If you’d like our answers in writing for your product, send us a brief.
Questions we get asked
How much does a China sourcing agent charge?
Most charge 3% to 10% of the product value, with lower rates on larger orders, or a flat fee per project. Inspections and factory audits are usually priced per inspector day, often around US$250 to US$400. Be wary of agents who say they are free; they are usually paid by the factories through a margin you don't see.
Is a sourcing agent worth it for a small order?
For a simple product you can buy with Alibaba Trade Assurance and inspect yourself, often not. For a custom or private-label product, a first order with a new supplier, or goods that need UK or EU compliance, an agent usually pays for itself by avoiding one bad supplier or one failed batch.
What is the difference between a sourcing agent and a trading company?
A sourcing agent works for you and should show you the factory, its price and its documents. A trading company sells to you. It buys from factories and resells at a margin, and often keeps the factory's identity to itself. Both can be useful, but you should know which one you are dealing with.
Should a sourcing agent be based in China?
For supplier checks, inspections and production follow-up, yes, or it should have staff there. Much of the value comes from being able to visit a factory at short notice. An agent abroad who subcontracts all of that is an extra layer between you and the factory.
How do I check that a sourcing agent is real?
Ask for its Chinese company name and unified social credit code, then check them on China's national enterprise registry, exactly as you would a supplier. Ask for a sample inspection report and the names of the people who will handle your order.