Sourcing agents are becoming more essential in managing international supply chains. In this blog, I’ve compiled 5 common questions that buyers often have about sourcing agents, along with clear, objective answers to each. Take 2 minutes to read this before you start working with a sourcing agent!
1. What is a sourcing agent？
A sourcing agent is a professional or company that assists buyers in finding suppliers and sourcing products as needed. Similar to a real estate agent, they connect you with the right resources, negotiate deals, and manage the details to streamline the process and minimize risks.
While sourcing products from China might seem simple, it can actually be quite complex, with challenges ranging from sampling to quality control and product delivery. When issues arise, they can quickly become headaches. This is where sourcing agents come in, saving you time and effort by offering a more cost-effective and efficient solution.
2. What does a sourcing agent do?
Now in China, there are many buying agents available. Their services basically fall into 2 types.
2.1 One-stop sourcing services
Mid-sized and large sourcing companies with experienced teams handle every aspect of the process, including working with Chinese suppliers, negotiating prices, managing sampling, conducting quality inspections, overseeing logistics, and supporting customization and new product development.
Sourcing firms with at least 40 employees can provide such comprehensive services. For example, JingSourcing has expanded from a 40-person team in 2015 to over 170 members to ensure exceptional service for each client order.
When improving existing products or developing new ones, sourcing companies must have in-depth knowledge of the product and substantial experience with customization. Without this expertise, you may find that your sample needs multiple revisions, yet still falls short of your expectations. Months could pass with minimal progress, delaying your new product launch.
2.2 Single or partial sourcing service
Private agents found on platforms like Fiverr or Upwork, as well as small sourcing companies with fewer than 10 employees discovered through Google searches, usually provide a limited range of sourcing services. These services often include basic tasks such as translation, supplier information gathering, product photos, sample consolidation, supplier audits, production tracking, and general consultations.
3. Who needs a sourcing agent? (5 types)
3.1 New to import with limited experience
Sourcing internationally comes with language and cultural barriers, as well as numerous business complexities—it’s not a fast or simple process. For beginners, finding the time and energy to manage every detail of the sourcing journey can be challenging.
Experienced agents can handle the entire process and provide professional guidance at every stage, allowing you to focus on your business with confidence. Along the way, you’ll gain valuable insights and product knowledge that will contribute to your growth.
3.2 Customize small batches to test new products and markets
When testing new products and markets, e-commerce sellers typically opt for small batch customization, usually around 300-500 units. Before reaching out to us, many had spent considerable time searching on Alibaba, but struggled to find suppliers who offered reasonable prices, met their expectations, and were highly cooperative. That’s when they turned to us.
With years of experience in customization and new product development, we work with both large and small factories, enabling us to manage small orders effectively.
We are happy to take on small batch orders, even with budgets as low as a few thousand dollars, growing alongside our clients.
This is why over 150 million-dollar e-commerce sellers have chosen us to help launch their projects.
3.3 Optimize the supply chain and save costs
As businesses grow, they typically reach this stage:
- Optimize existing suppliers to reduce product, logistics, and storage costs.
- Manage the entire supply chain to ensure consistent product quality and reliable supply, minimizing risks.
Successfully managing these tasks requires a professional sourcing team, which is why large international companies often establish purchasing offices in China. Small and medium-sized businesses, however, prefer partnering with a reliable sourcing company to act as their purchasing office in China—just like 60% of our successful Amazon, Shopify, and dropshipping sellers. They trust us to:
Offer excellent communication, always reachable, giving you peace of mind.
Handle bulk customization at the most competitive factory prices.
Ensure on-time delivery for every batch, with quality guaranteed and compensation for any defective items.
Ship batches to designated fulfillment centers or dropship directly from China, saving on logistics costs.
3.4 Source multiple product categories with ease
When sourcing for:
- Supermarkets, restaurants, hotels, interior design companies, etc.
- Retail stores selling pet supplies, party supplies, stationery, beauty products and cosmetic packaging, home decor, furniture, etc.
- Government, school, and large enterprise procurement projects.
- Personal projects like home renovations or café makeovers.
Your procurement list may include hundreds or even thousands of unique items, each requiring a different supplier, making it nearly impossible to visit each factory in person.
For products that sell consistently, you can bulk purchase directly from the factory. For the wide variety of other items, partnering with a sourcing agent can significantly boost your sourcing efficiency. They will source all the items you need from different suppliers, allowing you to choose options that fit your price and quality criteria.
Source specialized items: In addition to everyday consumer products, some specialized categories—such as chemicals and medicine—are more challenging to find reliable suppliers for, whether online or at trade shows. In these cases, a sourcing agency with expertise in the industry can provide invaluable support for your business.
4. What about China sourcing agent fees?
Sourcing agents typically charge either a fixed fee per project/time or a commission on the order amount.
Small sourcing companies and private agents in China typically charge a fixed fee per project or time period (hour/week/month), making them ideal for short-term or one-time service needs.
Some experienced buyers prefer to hire a private full-time sourcing agent for weeks or months to handle simple tasks like finding suppliers, translating, and facilitating communication with suppliers.
Small sourcing companies are often run by individuals with foreign trade experience, specializing in categories they are familiar with, and charge a fixed fee for specific services. For example, they may offer supplier sourcing, quality inspections, or logistics management. This can be a good fit if your sourcing needs align with their expertise.
5. Commissions
Commissions are a common pricing model for medium and large sourcing agents, similar to real estate agents taking a small percentage of the property price as a commission.
Typically, sourcing agents charge a commission rate of 5-10% of the order value.
This is generally fair for everyday consumer products. Many sourcing companies attract new clients with low commission rates or even offer free trial orders.
However, keep in mind that “No business is charity.” These companies often compensate for low commission rates by increasing product prices, inflating shipping costs, offering poor quality control, or neglecting your order, which can lead to various risks and headaches. You may end up with more stress than if you handled sourcing on your own.
For products in high demand or highly competitive markets, such as rolled steel, or for orders over $500,000, the service fee could be around 3% of the order value or even lower, which is considered reasonable.
6. 4 practical tips to find reliable sourcing agents
6.1 Choose the sourcing agent located in industry clusters
Most sourcing companies are based in Yiwu, Guangzhou, and Shenzhen. These strategic locations provide easy access to factory resources in the Pearl River Delta and Yangtze River Delta, two of China’s main industrial hubs. Additionally, being close to major ports allows them to optimize logistics, making it easier to consolidate and ship goods, which helps reduce overall logistics costs.
6.2 Choose the sourcing agent with a professional support team
In the past five years, over 150 sourcing companies have emerged in the market. A quick search for “China sourcing agent” will yield numerous results. While their services may appear similar and they may seem responsive at first, problems often arise once you begin working with them.
With 10 years of experience in the sourcing industry, we understand that providing quality sourcing services requires time, experience, and the accumulation of resources. It takes continuous collaboration and trial and error to identify the best products and suppliers, monitor production, and enforce strict quality control. Achieving this level of service requires seamless cooperation and oversight across all internal departments to consistently deliver high-quality results for our clients, year after year.
In China, becoming a sourcing agent is relatively easy—one can set up with a business license and a website, even as a solo operator. However, ensuring sourcing efficiency and maintaining service quality is far more difficult. Even with the best intentions, many of these smaller agents struggle to deliver the level of service needed.
6.3 Choose the sourcing agents with transparent pricing
Selecting an agent with clear service fees and transparent product quotes, including detailed breakdowns, is essential, particularly when dealing with custom products like electronics. Component costs such as circuit boards, chips, or aluminum can fluctuate quarterly and may vary widely depending on the material types.
It’s important to create a cost breakdown for your sourcing project, covering areas like sampling, molding, testing, bulk orders, packaging, and shipping. This will allow you to accurately compare the total expenses.
Transparent pricing and well-explained price changes help naturally build trust.
6.4 Choose the sourcing agents specialized in a certain product type
Opting for an agent who specializes in your product category can be a great choice, particularly for specialized items like chemicals, machinery, or large furniture. These agents possess a deeper understanding of the product and have access to reliable factory resources, ensuring more effective sourcing.
Choosing the right sourcing partner is like finding the perfect pair of shoes—it should be a perfect fit. Look for a company that truly understands your industry, knows your products, aligns with your values, and offers proven solutions. The best partners are transparent in their processes, provide clear reports, and maintain open communication.
We don’t claim to be the best, but we’re always working to improve, aiming to be a reliable partner in helping your business succeed. If one day you feel ready to discuss your project, we’re here and ready to talk.
