Qianhe / Guides

What does a sourcing agent cost?

How agents get paid, what the money should cover, and how to compare two quotes that look nothing alike.

Written by the Qianhe Sourcing team, Guangzhou · Last updated November 2026

Short answer: a straight-fee sourcing agent in China typically charges a flat service fee or 5–10% of the order value. Anything below that usually means the margin is hidden inside the factory price — and that is the number you cannot audit.

Payment modelWhat you seeCan you audit it?
Stated service feeFee shown as a line on the quotationYes — factory price and fee are both visible
Factory rebateOnly the factory price is shownNo — 3–15% is already inside your unit price
Undisclosed mark-upOne blended price, no breakdownNo — you cannot tell fair price from margin

The three ways agents get paid

1. A stated service fee. A fixed amount per project or a percentage of order value, written on the quotation. You know exactly what the agent earns, so every recommendation can be checked against the factory's own price.

2. A factory rebate. The agent quotes you the factory price, and the factory quietly returns 3–15% to the agent. Your unit price is inflated by exactly that amount, and the agent will always steer you toward whichever factory pays the most.

3. A hidden mark-up. The agent buys from the factory and resells to you. Sometimes this is legitimate distribution; when it is not disclosed, you cannot tell whether you are paying a fair price or funding the agent's margin.

What a realistic fee covers

A 5–10% fee on a first order is not expensive once you list what it buys: supplier identification and vetting, sample coordination, price negotiation against real factory cost structures, production milestones with dated photos, pre-shipment inspection, and loading supervision. On a US$20,000 order, a 7% fee is US$1,400 — roughly one percentage point of what a single rejected container or an unsellable quality defect costs.

Below roughly US$5,000 of order value, percentage fees stop making sense for either side; a fixed project fee is the honest structure at small volumes.

How to compare two agent quotes

Put them side by side and check five lines: the factory price and the factory's name; the tooling and sampling cost, and who owns the tooling; the agent's fee, stated as a number; the freight term and the forwarder's identity; and what happens on a quality claim. A quote that hides any of these is not cheaper — it is just unread.

The most reliable comparison test: ask both agents to quote the same specification from the same factory shortlist. If one price is dramatically lower with no explanation, the difference is somewhere you will find it later.

Common questions

Is 10% too much to pay a sourcing agent?

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For a small first order in a custom category, 10% is defensible because the fixed work — vetting, sampling, specification — does not scale down. For repeat orders of the same specification, the fee should step down, because the discovery work is already done. Ask for a declining schedule: for example 8% on the first order, 5% on repeats.

Can I just go to the factory directly and skip the fee?

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You can, and for a standard catalogue product you sometimes should. The fee buys judgement on non-standard goods: which factory can actually hold the tolerance, whether the certificate matches the goods, what the price should be. If you can verify those things yourself — or the order is too small for anyone to care — go direct.

How do I check whether my agent is taking a hidden rebate?

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Ask the factory directly, in Chinese, what their price is for your specification. One phone call. If the agent forbids direct factory contact in the contract, that clause exists for a reason.