China sourcing company vs sourcing agent: What’s the difference?

Looking to get your products from China? Take the first step by understanding the difference between a sourcing company and a sourcing agent


Unlike most of the world, sourcing products from China is an entirely different game. If you’re an eCommerce business importing regularly from China, it’s even more complicated. To find the best Chinese suppliers, businesses often look for a sourcing agent or sourcing company that has industry experience. So, should you look for an agent or a company? Keep reading to learn which is best for you.

What is a China sourcing company?

A China sourcing company is a business that has dedicated specialists to help you source from China. The sourcing specialists, sometimes called purchasing managers, have extensive knowledge of the market and long-term connections with various factories. Product sourcing companies are usually based near major Chinese manufacturing hubs like Shenzhen and Dongguan. 

Advantages of using a China sourcing company

Better communication: The staff members are often bilinguals, speaking Chinese and English and being the point of contact between suppliers and buyers.


On-the-ground presence: Sourcing companies are based close to factories in China, allowing them to visit the facility, monitor production, or conduct face-to-face meetings to strike deals.


Favorable deals: Due to their long-term connections with suppliers and high volume of orders, sourcing companies offer better deals, lower prices, and even faster production times.


Low MOQ: Factories set a minimum order quantity for any purchase, but a China sourcing company can go around this by combining small orders from multiple buyers.


Additional services: A well-established sourcing company could offer value-added services such as quality control, trademark filing, and credit terms.


Trustworthiness: While this doesn’t apply to everyone, well-known sourcing companies care for their reputation and are more accountable. They’re more likely to deliver on promises, maintain transparency, and address issues promptly.

Disadvantages of using a sourcing company

Higher fees (sometimes): Compared to China sourcing agents, companies may have higher service fees. But at the same time, they often compensate for that by offering better deals with suppliers.


They don’t accept smaller, single orders: If you’re looking to place a single purchase or have a very low order volume, it can be difficult to find a sourcing company willing to handle your order. Most companies prioritize larger or recurring orders.