A factory owner once told me: “I don’t make money selling 500 units. I make money when those 500 become 5,000 on the third order.”
That’s the math behind sourcing agent fees.
The Numbers
5-10% of order value. That’s what a competent sourcing agent charges. On a $20,000 order: $1,000-2,000. On a $50,000 order: $2,500-5,000.
Some charge a flat fee for smaller projects. $300-800 for supplier identification. $300-500 per factory visit for QC inspection. These numbers aren’t random — they reflect the time it takes to drive to an industrial park, walk a production line, and write up a report.
What That Fee Actually Buys
A factory visit. Not a video call. Someone on the production floor, checking your goods before you pay the balance.
A factory owner in Shandong once showed me two products — identical to the eye, different materials. One was 304 stainless steel. The other was 201 — cheaper, less corrosion-resistant. The buyer paid for 304. A photo would never have caught the difference. My magnet did. In seconds.
That single catch saved the client $6,000. The agent fee on that order was $1,600. The fee paid for itself 3.7 times over. That’s the math.
When an Agent Makes Sense
Your order is $3,000-100,000. Below that, the flat fee eats your margin. Above that, you probably have enough volume to go direct.
You’re ordering for the first time. The first order is the most dangerous. The factory doesn’t know you. You don’t know the factory. Someone needs to break the information asymmetry.
You can’t be in China. Distance creates risk. Someone on the ground eliminates it.
When to Skip the Agent
Your order is above $100,000 and you’ve worked with this factory before. At that volume, the relationship is direct. You trust them. They trust you.
You’re ordering a commodity product off the shelf. If you’re buying standard SKUs from a verified supplier, the agent adds less value.
You have your own person on the ground. If you have a China office or a trusted employee here, you don’t need an external agent.
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