How to Check a China Sourcing Agent Before You Trust Them

A good sourcing agent in China saves you time and money: they find factories, negotiate, follow production and arrange inspection and shipping. A bad one adds a hidden margin, hides the factory from you, takes commission from both sides, and leaves you with nothing when something goes wrong. Because you rely on the agent to check suppliers, the agent is the first supplier you should check.

How agents get paid

• Commission on order value, often a percentage that falls as order size rises.

• Fixed fee per project, per supplier search or per month.

• Margin on the product price, where the agent buys from the factory and resells to you. This is a trading company, whatever it is called.

• Kickbacks from factories, paid in addition to your commission and never disclosed. This is the main conflict of interest, because the agent then chooses the factory that pays the agent, not the one that is best for you.

None of these models is wrong if it is written down. Ask the agent to state in the contract how they are paid and that they take no payment from suppliers.

Check the agent's company

• Is there a registered company in China, or only a person with a WeChat account? Find it in the official business registry and check founding date, scope, insured employees and court records.

• If the agent uses a Hong Kong or overseas company to receive your money, ask why and check that company as well.

• Ask for two or three client references in your country and speak to them yourself.

• Ask what product categories they really know. An agent for everything is an expert in nothing.

Transparency tests

• Factory name: will they tell you the full name of the factory, and show you its registration? An agent who will never reveal the factory is reselling.

• Factory quote: will they show you the factory's own quotation or proforma invoice?

• Payment route: do you pay the factory directly, or does all money go through the agent? Direct payment to the factory, with the agent paid a separate fee, is much safer.

• Contract: whose name is on the purchase contract as seller? If it is the agent, the agent carries the seller's responsibility. Make sure they can actually carry it.

• Inspection: who inspects the goods? If the agent inspects goods it chose and sells, it is checking its own work.

Warning signs

• Prices much lower than other quotes, made up later by "extra" charges for samples, packaging or freight.

• A personal bank account or a payment app for large amounts.

• Pressure to pay the full amount upfront "because the factory requires it".

• Factory visits always arranged at a factory the agent chooses, never at one you name.

• Photos and videos that never show a company sign or a date.

Where an independent check fits

Many buyers keep their agent and add an independent check at two points: verifying the factory the agent proposes before the first order, and inspecting the goods before the balance is paid. The agent keeps doing the daily work; you get a second opinion from someone who is not paid by the sale. This is also useful when you buy from 1688 through an agent. See buying from 1688.

Questions to send your agent

1. What is your registered company name in China and your unified social credit code?

2. How exactly are you paid on this order, and do you receive any payment from the factory?

3. What is the full name and address of the factory you propose?

4. Can we pay the factory directly and pay your fee separately?

5. Can an independent inspector of our choice visit the factory and inspect before shipment?

For the checks on the factory itself, see how to verify a Chinese supplier and Yiwu market agents.

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LocalAuditChina is an independent verification service. I do not act as a sourcing agent and take no commission from suppliers.