Are you looking to sell private label products online? Are you having problems finding reliable suppliers in China? If so, then using a China sourcing agent can save you both money and time.
A sourcing agent is a specialist that connects you with factories in China to produce your products. They can also help you with…
- Packaging your products
- Shipping your products
- Quality control
- Price negotiation
A good sourcing agent typically lives in China and acts as your trusted advisor on the ground. They’ll help you locate manufacturers that you can not find on directories like Alibaba or Global Sources.
They also have a strong network of trusted factories, freight forwarders and inspection companies for your review. This post covers the top 17 China sourcing agents and companies and the pros and cons.
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The 3 Types Of China Sourcing Agents
There are 3 types of China sourcing agents that you can hire to source private label products from China. Here are your options.
Independent China Sourcing Agent
A China sourcing agent is an individual that helps connect you with reliable manufacturers. They are responsible for pre-vetting your suppliers and finding the best factory that meets your specific needs.
A sourcing agent will also negotiate on your behalf and act as a liaison with your supplier. In addition, most sourcing agents have a rolodex of reliable freight forwarders and customs agents to manage your entire supply chain.
Overall, a sourcing agent will save you time but their service comes at a price.
China sourcing agents are typically paid a flat rate for their services or by taking a percentage commission based on the cost of your order.
China Sourcing Agency
A China sourcing agency is a collection of China sourcing agents that work under the same company.
Agencies typically charge more for their services, but they have a larger network of factories and contacts.
China Sourcing Company Or Service Company
A service company is a business that specializes in helping you find a reliable supplier, negotiate costs, perform quality control and manage freight forwarding. They provide full end to end support for importing from China.
Working with a service company is similar to hiring an individual sourcing agent except that service companies typically do not give you the contact information of your factory.
In fact, most service companies keep their supplier contacts tight to their vest because their network is the main value add.
Similar to a sourcing agent, service companies take a commission based on a percentage of the overall order cost.
What Does A China Sourcing Agent Do?
A good China sourcing agent has close ties with many different factories and can find manufacturers to produce your products that would normally not work with you.
Here’s what a China sourcing agent can do for your business.
- Pre-screen factories to produce your products
- Negotiate prices on your behalf
- Communicate with Chinese factories if you don’t speak Chinese
- Perform quality control and inspections
- Find low cost freight forwarders to ship your goods
Even though you must pay a China sourcing agent a commission based on the cost of your inventory, they can save you both money and time.
Establishing contact and building trust with a Chinese factory is not easy because most larger manufacturers are not willing to work with random buyers. You must establish a relationship first!
In addition, many top tier suppliers can NOT be found on Alibaba. In some cases, the best suppliers online can only be accessed by a native China sourcing agent with established ties.
Even if you already have reliable suppliers for your business, you should periodically reach out to new factories to make sure that you are getting the best prices.
It’s also beneficial to have backup suppliers in place in case of production mishaps or product shortages.
How Much Does A China Sourcing Agent Cost?
A China sourcing agent will charge you a commission fee based on the cost of your order which ranges from 3-10%. Typically, the percentage charged decreases as your order size increases.
For example, here are the fees for Jing Sourcing which is a sourcing company that I’ve used in the past.
- Below $1000 – $100
- $1 – $2k – 10%
- $2 – $3k – 9%
- $3 – $5k – 8.5%
- $5 – $7k – 8%
- $7 – $10k – 7.5%
- $10 – $15k – 7%
- $15 – $20k – 6.5%
- $20 – $25k – 6%
- $25 – $30k – 5.5%
- Over $30k – 5%
After you place your first order, all future orders must be placed with your sourcing agent. In general, it is frowned upon to work with the factory directly and bypass your agent unless special terms are negotiated up front.
In fact, most factories will not do business with you without your agent. Some China sourcing agents will hide the factory information from you altogether.
Most service companies won’t reveal the name of your factory either.
A 5-10% sourcing fee may sound significant at first. But the amount of time and headache a sourcing agent can save you can be well worth the money.
The Best China Sourcing Agents And Sourcing Companies
If you are interested in hiring a China sourcing agent and you are willing to pay the extra fees, here’s a list of the top 17 China sourcing agents and sourcing companies in the world.
Jingsourcing
Jingsourcing is a China sourcing company located in YiWu China. With a staff of over 50 agents, they help clients find factories to produce private label products.
Jingsourcing caters to businesses of all sizes with no minimum orders.
Here are the services they provide.
- Product branding and private labeling for Amazon sellers and brand owners.
- Graphic design for products and packaging.
- Negotiation with factories.
- Product inspections
- Fees range from 5-10% with a minimum fee of $100
Imex Sourcing
IMEX Sourcing Services is a China sourcing company that provides a range of services to help businesses find and procure products and services from international suppliers.
IMEX Sourcing Services employs a team of sourcing experts who have a deep understanding of the global marketplace and can help businesses identify and procure the best products and services at the most competitive prices.
They have a network of over 1,000 suppliers in more than 50 countries, and offer a range of online tools and resources to help businesses find and compare suppliers, request quotes, and place orders.
Here are the services they provide.
- Supplier research
- Product sourcing
- Product procurement
- Shipping logistics support
- Quality control and inspections
Foshan Sourcing
Foshan sourcing is a China sourcing company that provides a range of services to businesses in the Foshan area of China.
With over a decade of experience, Foshan specializes in ceramics, toys, tiles, furniture, doors, windows and other home products.
Their services include sourcing products from suppliers in China, as well as providing logistics and shipping services to ensure that shipments are delivered to customers on time and in good condition.
They also offer quality assurance, customer service, and after-sales support.
Here are the services they provide.
- Product development
- Supplier research
- Quality control
- Shipping forwarding
- Storage and warehousing
Sourcify
Sourcify is a global manufacturing platform that helps you manage your entire supply chain.
In addition to full production management, their platform also offers a directory of manufacturers, a sourcing request tool, and a project management tool.
Brands can use Sourcify to find manufacturers that meet their specific needs, request quotes, and manage their projects from start to finish.
Here are the services they provide.
- Product development
- Supplier research
- Quality control
China2West
China2West is a one-stop solution provider for supply chain management, manufacturing, quality control, and product development.
Founded in 2005, China2west owns a widespread network of wholesale suppliers across thousands of different product categories.
Here are the services they provide.
- Product development
- Supplier research
- Quality assurance
- Product testing
- Product certifications
- Factory administration and project management
LeelineSourcing
LeelineSourcing is a China sourcing company that helps you find factories, get competitive pricing, and manufacture private label products with full inspection services and delivery door to door.
With over 10 years of experience, they provide free consulting services until your manufacturer is selected.
Here are the services they provide.
- Amazon FBA Prep
- Product sourcing
- Quality assurance
- Custom packaging
- Product photography
- Freight forwarding
SupplyIA
SupplyIA is a China sourcing company that helps you manage your entire supply chain including product development, factory sourcing, prototyping and production.
SupplyIA caters to businesses of all sizes with commissions in the 5-9% range.
Here are the services they provide.
- Amazon FBA Prep
- Product sourcing
- Price negotiation
- Quality assurance
- Custom packaging
- Product photography
- Freight forwarding
Meeno Group
Meeno Group is a one stop shop for sourcing from China. Their office is located in the center of Zhejiang Province in Yiwu.
With over 5 years of experience, Meeno group specializes in sourcing toys, clothing, jewelry, electronics, kitchenware, hardware, tools and furniture.
They charge a 3-8% commission on purchases from factories they find for you.
Here are the services they provide.
- Free consultation
- Factory audits
- Product sourcing
- Price negotiation
- Quality assurance
- Custom packaging
- Product photography
- Freight forwarding
Sourcing Bro
Sourcing Bro is a China sourcing company that helps you find a supplier in addition to manage your inventory, fulfillment and forecasting needs as well.
The only caveat is that their sourcing and fulfillment services must be purchased together. You can not just use Sourcing Bro to find suppliers.
You can think of Sourcing Bro as both a China sourcing agent and a 3PL all in one.
Here are the services they provide.
- Product sourcing
- Done for you inventory management
- Product fulfillment
- International shipping
Dragon Sourcing
Dragon Sourcing is a China sourcing company that offers a complete sourcing service to companies worldwide.
They are one of the largest sourcing companies in China with offices in the US, Kenya, Turkey, Italy, Brazil, South Africa, UK, Vietnam, Shanghai and Hong Kong.
Here are the services they provide.
- Product development
- Factory audits
- Product sourcing
- Price negotiation
- Quality assurance
- Freight forwarding
Lazpanda
Lazpanda is a China sourcing agent that caters to small businesses. With over 5 years of experience, they offer sourcing supplier verification, inspections, and freight forwarding from factories in China.
Lazpanda specializes in electronics, kids products, home products and the sports and outdoors.
Here are the services they provide.
- Factory audits
- Product sourcing
- Price negotiation
- Quality assurance
- Freight forwarding
B2C Sourcing
B2C Sourcing is a China sourcing company that specializes in sourcing for Amazon FBA. They provide services for every step of the Amazon FBA private label process which includes finding suppliers, inspections, freight forwarding, product photography and warehousing.
B2CSourcing is located next to a major port in Ningbo, China and they’ve provided services to large companies such as Philips, Disney and Lumec.
Here are the services they provide.
- Product sourcing
- Supplier audits
- Inpections
- Samples forwarding
- Price negotiation
- Freight forwarding
- Product photography
- Warehousing
Guided Imports
Guided Imports is a China sourcing company with offices in the US, Singapore, China and Thailand that caters to Fortune 500 and high growth ecommerce companies.
If you are a small business or just starting out, then Guided Imports is probably not the right fit.
Guided Imports is known for applying Western management principles to sourcing products from China.
Here are the services they provide.
- Product sourcing
- Supplier audits
- Inpections
- Samples forwarding
- Price negotiation
- Freight forwarding
Linc Sourcing
Linc Sourcing is a China sourcing service company that helps customers buy products from China. They search, identify and source factories according to your requirements and handle all of your procurement needs.
In addition to product sourcing, they also provide legal advice and help with any required certifications to sell certain types of products.
Here are the services they provide.
- Product sourcing
- Supplier audits
- Legal advice
- Inspections
- Price negotiation
- Freight forwarding
Maple Sourcing
Founded in 2012, Maple Sourcing is a China sourcing company that provides factory audits and quality inspection services.
Maple Sourcing is known for their transparency and their emphasis on working with qualified manufacturers that deliver high quality products. In fact, they offer a product quality guarantee.
Here are the services they provide.
- Product sourcing
- Supplier audits
- Order monitoring
- Manufacturing control and management
- Quality inspections
China Purchasing Agent
China Purchasing Agent is a company that offers complete services for product sourcing, custom packaging, labeling and freight forwarding.
They are also a one stop shop for Amazon FBA and other prep services.
All of their China sourcing agents have over 10 years of experience, the service fee is only 3% and they’ve served over 2000 clients. You get 2 trial orders for free.
Here are the services they provide.
- Product sourcing
- Supplier audits
- Quality inspections
- Freight forwarding
Baysource Global
Baysource Global is a China sourcing company that was founded in the US. With offices in Tampa and China, they cater to small business owners in the United States who prefer working with a US based sourcing agent.
They have a 75+ member team in both the United States and China and offer a methodical and transparent approach to finding new suppliers.
Here are the services they provide.
- Product development
- Product sourcing
- Supplier audits
- Quality inspections
Questions To Ask Your China Sourcing Agent
If you are looking for a good China sourcing agent, it’s important to ask the right questions before hiring them.
Here’s a list of questions that you should ask.
- What are the payment terms? – Is there a deposit involved and when does the sourcing agent get paid? Some agents require upfront payment whereas others will allow you to pay when the products are ready to be shipped.
- How is quality control handled? – Does the agent offer inspection services or are they outsourced to a 3rd party like Qima? Will they visit the factory to ensure that ethical production practices are followed? How are the inspection reports delivered?
- Do they have referrals from happy customers? – Make sure to ask for referrals from clients in your home country.
- How often are production updates given? – You should have a direct method of contacting your sourcing agent through a messaging app like WeChat or Whatsapp.
- Are there any guarantees for late shipments or poor quality goods? – No production run ever goes perfectly smooth and it’s important to have contingency plans in place.
- Where are they located? – In general, it’s better to use a sourcing agent that lives close to your factory. Different regions in China specialize in different types of goods.
- What are their fees? – Every sourcing agent offers a different fee structure. Make sure you negotiate favorable terms if you decide to use their services in the long term.
Aside from the questions above, make sure that your sourcing agent is responsive and can speak your native language fluently.
If you experience any communication problems now, then it will only get worse once your products are in production.
Pros And Cons Of Using A China Sourcing Agent
Here are the pros and cons of using a China sourcing agent as opposed to finding your own suppliers via Alibaba or going to the Canton Fair.
China Sourcing Agent Pros
- Saves Time – A China sourcing agent already has an established rolodex of pre-vetted manufacturers for your review. Alibaba is filled with tire kickers and middlemen and a sourcing agent can help you quickly weed through the junk.
- Improved Communication – A China sourcing agent speaks Chinese and English fluently. As a result, your agent can facilitate communication between you and your factory. In some cases, you won’t even have to communicate with your supplier directly at all!
- Smoother Production Process – A China sourcing agent has experience sourcing products and typically has procedures in place. If you are new to ecommerce, your agent can teach you the right way to source products for sale.
- Better Quality Control – A good sourcing agent has in house staff or inspection agencies at their disposal to make sure your products are made without defects. You should never trust the factory!
- Accessibility – When things go wrong, a China sourcing agent can help fix the problem directly by visiting the factory. Sometimes email and texting isn’t good enough.
China Sourcing Agent Cons
- Extra Costs May Eat Into Your Margins – A China sourcing agent will charge you a percentage of your goods. This is essentially a royalty that you will have to pay for as long as you use your factory.
- Single Point Of Failure – If your sourcing agent decides to quit or ghosts you, you may lose your supplier altogether.
- Backend Deals – Because sourcing agents are paid based on order size, they may be incentivized to work with certain factories that provide special incentives or kick backs.
Is Using A China Sourcing Agent Worth It?
If you are new to ecommerce and you are having problems finding a reliable supplier to produce your goods, then hiring a China sourcing agent is an excellent option.
The amount of time that a quality sourcing agent can save you is well worth the money. In addition, they live in China and can visit your factories in person should problems arise.
However, you should hire a China sourcing agent only after you’ve made an attempt to find your own factories.
Services like Alibaba and Global Sources have made it extremely easy to find reliable suppliers online. If you have the means, attending trade shows like the Canton Fair or Global Sources are invaluable for meeting suppliers face to face.
For our ecommerce business, we tend to use sourcing agents when we are in a pinch.
For example, this past holiday season, our suppliers experienced production delays which meant that our products would not arrive in time for the holiday season.
As a result, we used a sourcing agent to quickly find a new factory to produce our products. The main question you must ask yourself is whether you can afford to sacrifice your time for money.
Finding your own suppliers generally takes more time and effort that you could be spending on other parts of your business.
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Steve Chou is a highly recognized influencer in the ecommerce space and has taught thousands of students how to effectively sell physical products online over at ProfitableOnlineStore.com.
His blog, MyWifeQuitHerJob.com, has been featured in Forbes, Inc, The New York Times, Entrepreneur and MSNBC.
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In addition, he runs a popular ecommerce podcast, My Wife Quit Her Job, which is a top 25 marketing show on all of Apple Podcasts.
To stay up to date with all of the latest ecommerce trends, Steve runs a 7 figure ecommerce store, BumblebeeLinens.com, with his wife and puts on an annual ecommerce conference called The Sellers Summit.
Steve carries both a bachelors and a masters degree in electrical engineering from Stanford University. Despite majoring in electrical engineering, he spent a good portion of his graduate education studying entrepreneurship and the mechanics of running small businesses.
