What Is a Sourcing Agent? What Sourcing Agents Do (and When You Need a Sourcing Company Instead)
A sourcing agent is a third-party professional who finds overseas suppliers and manufacturers on your behalf. They handle supplier identification, price negotiation, quality checks, and logistics coordination so you don't have to navigate foreign markets alone. Sourcing agents are especially common in international procurement from countries such as Vietnam, China, and India, as well as other manufacturing hubs across Asia.
That is the short answer. The longer answer depends on what kind of sourcing partner you actually need, because the term "sourcing agent" gets applied to everything from a solo freelancer on Fiverr to a full-service sourcing company with teams on the ground. Those are very different things, and the distinction matters more than most buyers realize.
At Cosmo Sourcing, we have helped over 4,000 clients source more than 10,000 products since 2012. I have personally visited hundreds of factories across Vietnam, China, and beyond. This article breaks down what sourcing agents actually do, where they fall short, and when it makes more sense to work with a sourcing company instead.
Updated February 21, 2026
What Does a Sourcing Agent Do?
A sourcing agent's job covers the full cycle of finding a manufacturer and getting your product made. In practice, these are the core responsibilities.
Supplier Identification and Vetting
This is the starting point. A sourcing agent researches factories that can produce your specific product, then narrows the list based on capability, capacity, certifications, and track record. A good agent does not just pull names from Alibaba. They visit factories, check production lines, and verify that what a factory claims it can do matches reality.
I have walked into factories in Vietnam where the showroom looked world-class, but the actual production floor told a completely different story. That kind of gap is impossible to catch from behind a computer screen, and it is one of the reasons on-the-ground verification matters so much.
Price Negotiation and Quoting
Once potential suppliers are identified, the agent requests quotes on your behalf, compares pricing across multiple factories, and negotiates terms. This includes unit pricing, tooling costs, MOQs, payment terms, and lead times. A skilled negotiator who understands local pricing norms can save you significantly more than their fee costs.
Sample Management
Before committing to a production run, the agent coordinates pre-production samples so you can evaluate quality, materials, and dimensions. They can inspect samples locally before shipping them to you, saving time and catching problems early. I always tell our clients: never approve mass production based on photos alone. Get the sample in your hands.
Quality Control and Production Monitoring
During production, a sourcing agent (or their team) can conduct factory inspections, in-line checks, and pre-shipment inspections. This is one of the most valuable services a sourcing partner provides, because quality problems caught after goods leave the factory are exponentially more expensive to fix. In my experience running Cosmo Sourcing for over a decade, the difference between a smooth first production run and a disaster almost always comes down to whether someone physically walked the factory floor during production.
Logistics Coordination
A sourcing agent helps coordinate shipping from the factory to your warehouse, FBA center, or other destination. This can include working with freight forwarders, managing export documentation, and ensuring packaging meets shipping requirements. A good agent also understands the difference between FOB, CIF, and other Incoterms, and can advise on which arrangement makes sense for your order size and risk tolerance.
Communication and Problem-Solving
In countries where English is not the primary business language, the agent acts as your translator and cultural bridge. They relay technical specifications to the factory, flag potential misunderstandings, and resolve issues as they arise. Having spent years working with Vietnamese, Chinese, Korean, and Japanese-owned factories, I can tell you that miscommunication is the single most common cause of production problems. It is not that factories don't care; it is that nuance gets lost when nobody is there to bridge the gap.
How Sourcing Agents Typically Charge
Sourcing agents use several fee structures. The most common is a commission model, where the agent takes a percentage of the total order value, usually 3% to 10%. Some agents charge a flat fee per project. Others, particularly individual freelancers, charge hourly or daily rates.
The commission model is widespread, but it creates a built-in conflict of interest: the more you spend, the more the agent earns. This can incentivize agents to steer you toward more expensive factories or inflate costs. Some agents also take undisclosed kickbacks from factories on top of the commission you are paying, which means you never see the true factory price.
I have seen this happen repeatedly. A client comes to us after working with an agent who claimed to charge "only 5%," but the factory quotes they received were already 15% to 20% above what we got from the same factories. The agent was double-dipping, and the client had no way of knowing.
This is worth paying serious attention to when evaluating any sourcing partner. Transparency in pricing, and specifically whether you receive the original, unaltered factory quotes, is one of the clearest signals of a trustworthy partner. For more on vetting sourcing partners, see our guide on how to find good sourcing companies and avoid the bad ones.
Sourcing Agent vs. Sourcing Company: Why a Sourcing Company Is Usually the Better Choice
The terms "sourcing agent" and "sourcing company" are often used interchangeably, but they describe different models, and for most businesses, a sourcing company is the stronger option.
What a Sourcing Agent Looks Like
A sourcing agent is typically an individual or a very small team. They might be a freelancer you find on Upwork, a local contact recommended through a trade forum, or a former employee of a trading company working independently. Individual agents can provide personalized attention and sometimes have deep expertise in a narrow product category. But the trade-offs are real: limited bandwidth, no backup if they become unavailable, and typically fewer resources for quality control, logistics, and compliance.
What a Sourcing Company Offers
A sourcing company is a structured organization with a dedicated team covering various functions: sourcing specialists, quality control personnel, logistics coordinators, and, sometimes, legal or compliance staff. A sourcing company can handle multiple product categories, operate across regions, and scale with your needs. They generally have established processes, broader factory networks, and the infrastructure to manage complex or ongoing projects. For a deeper dive on what a sourcing company does and how to evaluate one, see our full article on what is a sourcing company.
Why a Sourcing Company Wins for Most Projects
The practical difference shows up when something goes wrong, and in international manufacturing, something always does. If your individual agent gets sick, goes on holiday, or disappears (which happens more often than you might think), your project stalls with no one to pick it up. A sourcing company has continuity built in.
I have also seen agents who were great at finding factories but had no system for quality control, no logistics contacts, and no process for handling disputes. When the first production issue occurred, the client was left to manage it alone. A sourcing company with dedicated QC staff and established freight forwarder relationships can handle that end-to-end.
An individual agent might work for a very simple, one-off purchase. But for anything involving custom manufacturing, ongoing production, multiple suppliers, compliance requirements, or any real money at stake, a sourcing company offers reliability, accountability, and breadth that a solo operator cannot match. After 13 years in this industry, I would recommend a sourcing company over an individual agent for the vast majority of projects.
Sourcing Agents vs. Trading Companies
There is another category that often gets confused with sourcing agents: trading companies. A trading company buys products from manufacturers and resells them to you at a markup. You typically do not know which factory made your product, you cannot customize freely, and you pay a premium for the convenience.
A sourcing agent or sourcing company, by contrast, connects you directly to the factory. You see the real pricing, you own the supplier relationship, and you have full control over customization and production specifications. For businesses building a brand or developing custom products, working with a sourcing partner rather than a trading company is almost always the better path.
When Do You Actually Need a Sourcing Partner?
Not every business needs outside help. If you are buying off-the-shelf products from a domestic wholesaler or placing repeat orders with a factory you already know and trust, you can probably manage on your own.
A sourcing partner adds the most value when:
You are sourcing from a country where you do not speak the language or understand the business culture
You are developing a custom or private-label product that requires factory vetting, sampling, and production oversight
You do not have the time or expertise to research factories, compare quotes, and manage quality control yourself
You need to diversify your supply chain into a new region, such as moving production from China to Vietnam or Mexico
Your order involves complex manufacturing with multiple suppliers or components
For first-time importers, especially, the cost of a sourcing partner is almost always less than the mistakes you would make going it alone. We see this constantly: clients who tried to source directly, hit a wall, and came to us after losing time and money on a factory that over-promised and under-delivered.
How to Choose the Right Sourcing Partner
Whether you are evaluating individual agents or sourcing companies, a few factors set reliable partners apart from risky ones.
Demand Transparency on Factory Access
Will you receive the factory's original quotes? Will you get the factory's contact information and a direct introduction? Any sourcing partner that refuses to share supplier details is likely earning hidden commissions and may not be acting in your best interest.
Evaluate Their On-the-Ground Presence
A sourcing partner who can physically visit factories, conduct inspections, and meet with suppliers in person will catch problems that remote-only agents miss. Ask where their team is located relative to the factories they work with.
Check Their Experience
Sourcing a plush toy is nothing like sourcing a machined aluminum component. Make sure your partner has relevant experience with your product category, or at a minimum, a factory network broad enough to find the right manufacturers.
Understand Their Fee Structure
If pricing seems too good to be true, or if services are "free," there are almost certainly hidden costs built into the factory quotes. A transparent fee model, whether commission-based or flat-rate, removes that ambiguity.
Protect Your Intellectual Property
If you are developing a custom product, make sure your sourcing partner understands and facilitates proper IP protection, including NNN agreements where appropriate. This is especially important in markets where IP enforcement can be inconsistent.
Work With Cosmo Sourcing: Go Straight to the Source
If you are looking for a sourcing company with real boots on the ground, Cosmo Sourcing is built for exactly that. Since 2012, we have helped over 4,000 clients source more than 10,000 products from Vietnam, Mexico, China, and across Southeast Asia. Our team in Ho Chi Minh City has visited hundreds of factories, and every client receives original factory quotes, full supplier contact details, and direct factory introductions. We typically provide two to six quotes per product so you can compare and choose with confidence.
We operate on a flat-fee pricing model with no hidden commissions and no markups. You see what the factory charges, and we charge you a transparent fee for our sourcing work. That is it.
Whether you are sourcing your first product or diversifying your supply chain away from a single country, we would like to help.
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