A China sourcing agent works for the buyer for a disclosed fee — typically 3–10% of order value — while a trading company buys from the factory and resells to you at a margin you never see. The difference decides who owns quality control when a bulk run goes wrong.
Written for brands and importers hiring one for the first time. No email required — everything is on this page.
Most China sourcing agents charge 3–10% of order value, with 5–6% the common band for first orders. Retainers run roughly $1,000–3,000 per month.
The model matters more than the headline percentage: the cheapest quoted rate is often the one with a second, undisclosed margin behind it.
Where we sit, since you're reading this on our site: Groundwork is not a row on the table above. We take no percentage of order value, no retainer and no per-visit fee. We quote a finished unit price per product — costed from the material up, and nothing is ordered until you approve it. Sourcing, production management, at least three factory visits and inspection of every piece sit inside that price, not on top of it. The one cost outside it is third-party lab testing or an inspection you ask for, passed through at the inspector's own invoice with nothing added.
| Fee model | Typical range | Best for | What to watch |
|---|---|---|---|
| Commission on order value | 3–10% (5–6% typical) | First orders and programs under about $50,000 | An agent can also take a hidden margin from the factory. Ask, in writing, whether they accept any payment from the supplier side. |
| Flat monthly retainer | ~$1,000–3,000 / month | Ongoing multi-SKU programs with steady volume | You pay in months when nothing ships. Only rational once volume is predictable. |
| Per-service (inspection only) | ~$200–320 per man-day | Buyers who already have a factory they trust | Nobody owns the whole order. Inspection finds the defect; it does not get it fixed. |
| Trading company (buy & resell) | Quoted price only — margin undisclosed | Speed, and very small quantities | You never see the factory price, so you cannot tell a cost increase from a margin increase. |
Industry norms for consumer goods sourced in China, not a Groundwork quote. Major-brand inspectors publish about $290–309 per man-day in China (2026).
No. An agent represents the buyer and is paid a disclosed fee. A trading company buys the goods itself and resells them to you at an undisclosed markup.
Both answer your email in good English, and both call themselves a "supplier." The difference shows up when a run comes back off-spec — it decides whose money is at risk.
| Sourcing agent | Trading company | Direct from factory | |
|---|---|---|---|
| Works for | The buyer | Itself | Itself |
| How it is paid | Disclosed fee or commission | Undisclosed resale margin | Your purchase price |
| Who owns quality control | The agent, if contracted for it | Nobody, in practice | The factory inspects its own work |
| Who fixes a defective run | The agent negotiates rework | You negotiate with the reseller | You negotiate alone, in Chinese, 12 time zones away |
| Main risk | Agent takes a second margin you cannot see | Price and source both opaque | No one on the floor representing you |
Ask seven questions in writing. A real agent answers all seven in a day; a reseller deflects on the ones about money and factory access.
Get it in writing that they take no commission, rebate or kickback from the supplier side.
Not a recorded tour — a live call from the line running your product category. A reseller cannot produce this on request.
During production, or only after the factory says it's finished? That answer predicts whether defects get fixed or shipped.
If the answer is "we'll discuss it then," you are the one who will pay.
Third-party inspection has a public market price. Ask whether it is billed at cost or at a margin.
A company account, staged against production milestones. Never a personal account. Never 100% up front.
An agent confident in their factory lets you verify before volume.
DUPRO means during-production inspection: checking while the line is still running, so defects can be corrected mid-run instead of discovered after the full quantity is finished.
Most agents inspect once, at the end — cheapest for the agent, most expensive for the buyer. By then the choices are rework the whole quantity, ship it anyway, or miss the season.
| Checkpoint | When it runs | What it catches | What it can still save |
|---|---|---|---|
| IQC — incoming materials | Before cutting or assembly | Wrong fabric weight, off colorway, substituted components | The entire run — the defect never enters production |
| IPQC / DUPRO — in-process | While the line is running | Drifting measurements, seam and assembly faults, workmanship | Everything not yet built. Correction happens on the line. |
| FQC — final | After production finishes | Defects across the finished quantity | Only the decision to ship or rework. Cost is already sunk. |
| OQC / PDI — pre-dispatch | Before the container loads | Wrong quantities, packing, labels, cartons, mixed SKUs | The freight cost of shipping the wrong thing |
A Korean brand moved one product — around 800,000 units a year — out of Korean production and into China. Three sourcing agents ran it before we did. Each one relayed messages to the factory; none of them checked the line while it was running. Twice, the defects ended in a lawsuit.
A final inspection could only have confirmed the run was already twisted. The QC report from this category is published — defects listed, corrected, re-checked.
We run all four on every order and re-inspect in house after the factory reports "done" — how the four checkpoints work.
Verify the Chinese legal entity first, then confirm who controls the production floor and whether that floor can make your exact product. A marketplace badge or one good sample cannot prove all three.
A trading company is not automatically a bad supplier. The risk is an undisclosed middleman claiming to own production, while your contract and quality plan depend on a factory you cannot inspect.
Work through the complete eight-check manufacturer verification guide, or see what Groundwork verifies during an on-site factory visit.
Pay a company bank account in stages tied to production milestones. Never pay a personal account, and never pay 100% up front.
The common structure: a deposit against materials, a balance against production milestones, and final payment released after the pre-dispatch inspection report — not before it. A request for a personal account, or for the full amount up front, is the point to stop.
We are the agent side of the table: we verify the factory is a real manufacturer, control the order on the ground in Yiwu, run all four checkpoints including during production, and re-inspect in house after the factory says it's finished.
New buyers start on a sample or a small test order. Strongest categories: baby and pet strollers, apparel, bags and hats.
Commission agents typically charge 3–10% of order value, 5–6% on a first order. Retainers run $1,000–3,000 a month; inspection-only work is about $200–320 per man-day. Ask for the structure in writing before you send anything.
For a first order it usually is: the failure you are insuring against — a bulk run that does not match the approved sample — costs more than the fee. For repeat orders from a factory you have already verified, per-service inspection alone can be enough.
DUPRO runs while the line is still producing, so a defect can be corrected mid-run. Final inspection runs after the quantity is finished, so the same defect is spread across the whole order — rework, ship, or miss the date.
Yes, and it is the main hidden cost in the industry. Ask in writing whether the agent accepts any commission, rebate or kickback from the supplier side.
Not in full. Pay a company account in stages tied to production milestones, with the final payment released after the pre-dispatch inspection report. A personal account or 100% up front is the standard warning sign.