What you pay an agent
The standard model is a commission on order value, tiered by size: around 10% under $10,000, 7% between $10,000 and $50,000, 5% above. Sourcing, factory shortlists and quotes are usually free; audits, inspections and prep are priced per job. The important structural point is transparency: with an agent model you see the factory invoice and pay the commission on top. A trading company or an "Alibaba factory" that is really a reseller hides its margin inside the unit price, and that margin is typically 15–30%.
What buying direct costs that is not on the invoice
- Price: without Mandarin negotiation and a known volume history, a first-time buyer typically pays 8–15% above the price a repeat buyer gets for the same spec.
- Payment terms: 100% upfront versus 30/70 means financing the factory with your own cash for 40 days.
- Freight: factory-arranged shipping, often quoted DAP with a margin, with destination charges arriving later.
- Prep: FNSKU and packaging done at the factory without a check, or in the US at $1.00–1.50 per unit.
- Defects: no pre-shipment inspection means the first quality check is your customer.
- Time: the hours spent chasing samples, documents and tracking across a 15-hour time difference.
Worked comparison: a $38,000 kitchenware order
2,000 units to US FBA, factory price $19 EXW at first quote. The direct route as most first-time buyers run it, against the agented route as we run it.
| Line | Direct | With agent |
|---|---|---|
| Goods | $38,000 (first-quote price, 100% upfront) | $33,900 after negotiation, 30/70 terms |
| Freight and clearance | Factory DAP quote $3,860 + $410 destination charges after arrival | DDP, consolidated: $3,010 |
| FBA prep | US prep center, $1.20 × 2,000 = $2,400 | China warehouse, $0.35 × 2,000 = $700 |
| Inspection | None | $299 |
| Agent commission | — | 8% of $33,900 = $2,712 (blended for this tier) |
| Total | $44,670 | $40,621 |
| Cash out on day 0 | $38,000+ | $10,170 |
The agented order landed $4,049 cheaper including the commission, with an inspection the direct order never had, and with $26,600 staying in the buyer's account until QC passed. Savings covered the commission about 2.3 times. The numbers move with the product, but the shape of the comparison is the same on most orders between $10,000 and $100,000.
When direct is the right call
- You read Chinese, or your team does, and you have factory relationships with volume history.
- You are buying standard stock products where negotiation has little room and quality risk is low.
- Order values under about $3,000, where a commission floor and inspection fees outweigh the saving.
- You already run your own QC and freight and simply want a factory price.
Questions to ask any agent
- Do I see the factory invoice? If not, you are dealing with a trading company whatever they call themselves.
- How is the commission calculated and when is it paid?
- Who inspects, against what checklist and AQL, and do I approve the report before the balance is paid?
- Who is the importer of record on DDP shipments, and is cargo insured?
- What happens if goods fail inspection, and who pays for rework?
Frequently asked
How much does a China sourcing agent charge? +
Commonly 5–10% of order value depending on size: about 10% under $10,000, 7% for $10,000–50,000, 5% above $50,000, with sourcing and quotes free and inspections priced per job.
Is a sourcing agent the same as a trading company? +
No. An agent is paid a disclosed commission and shows you the factory invoice. A trading company buys and resells with an undisclosed margin inside the unit price.
Does an agent make sense for small orders? +
Below about $3,000 per shipment, rarely: the fixed costs of inspection and formal customs entry are too large a share. From $10,000 upward the savings on price, terms, freight and prep usually exceed the commission.
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Figures are indicative floor rates and typical fee ranges on our lanes as of Oct 11, 2026. Duty rates depend on your product's tariff code and declared value. This is general information, not customs or legal advice.