Factory-direct, sourcing agent or marketplace: three ways to buy from China
Marketplaces are the cheapest way to start but leave supplier checks, quality control and shipping to you. A sourcing agent works for you for a fee while you keep the supplier contract. A factory-direct trading company buys from the factory and sells to you, so you get one price, one invoice and one company responsible for quality and delivery.
How each model works
On a B2B marketplace you contact suppliers yourself. Many listings belong to trading companies rather than factories, and you handle vetting, samples, inspection, payment and freight on your own.
A sourcing agent searches for suppliers, negotiates and follows production on your behalf. Agents usually charge a commission on the order value or a service fee. The purchase contract stays between you and the factory.
A factory-direct trading company, like I&R Group, buys from the factory and resells to you. Its margin is built into a single price, and it carries the responsibility for the goods matching what you approved until they ship.
Side-by-side comparison
| Marketplace | Sourcing agent | Factory-direct trading company | |
|---|---|---|---|
| Who you pay | The supplier | The supplier, plus the agent | One company |
| Price structure | Supplier price | Supplier price plus commission or fee | One price with margin included |
| Who checks quality | You, or an inspector you hire | The agent | The trading company |
| Who you claim against | The supplier, abroad | The supplier, with agent support | The trading company |
| Effort for you | High | Medium | Low |
| Best for | Stock items and small trial orders | Large buyers who want to own factory relationships | Buyers who want a landed price and one counterpart |
Questions to ask any provider
- Are you the factory, a trading company or an agent?
- Who signs the purchase contract and who issues the invoice?
- What exactly is included in the price, and what is charged separately?
- Who inspects the goods before shipping, and do I get a report with photos?
- If goods arrive defective, who do I claim against and how?
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