How to choose a sourcing company?

Look for a sourcing agent with a great deal of experience and a good clientele record. Ensure that the company you are connecting with has a good record as it can reflect their quality of service and quality of deliverance.

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Sourcing May 3rd, 2021 views

Tips for choosing the right sourcing company?


Look for a sourcing agent with a great deal of experience and a good clientele record. Ensure that the company you are connecting with has a good record as it can reflect their quality of service and quality of deliverance.

A top sourcing agent will be able to help you with all levels of productions and give good advice. Watch out for customer reviews as they can help you in recognizing the best sourcing agents.


  1. Look for a sourcing agent who has an in-depth knowledge of the industry you want to work in and ensure that he has experience in sourcing products in that particular field.
  2. In India, different areas specialize in different products so it helps if your sourcing agent has the knowledge of where to gain a particular product from.
  3. A sourcing company should be able to come up with a compact process which helps you by saving your time and cutting down your production costs while maintaining the proper quality level.
  4. They should be able deliver all the products you demand while maintaining a good relation with the suppliers


Miscommunication can damage your business ties and relations in the long run. So, it is better to communicate with your sourcing agent and also keep an eye on his communication with others. There is a chance that if he communicates well with you, he has excellent communication with the concerned buyers and suppliers.


  1. If you connect with a professional sourcing agent, you will notice that they not only act as a connection between the supplier and buyer but also try their level best to give you an exceptional service to ensure customer satisfaction.
  2. The sourcing agent should be able to satisfy your needs and demands which makes them trustworthy.


  • A top sourcing company will ensure that you are updated about the happenings
  • A bad sourcing agent might hide the details of the procedure in order to gain the upper hand.
  • A sourcing agent is not supposed to only act as a middleman, they are supposed to join hands with you to help you obtain the best outcomes.
  • Being transparent reduces the risk of future conflicts and misunderstandings.


In order to protect your business, confirm that all the terms and conditions are written down in a contract and agreed to. Hire a lawyer if you want a professional opinion.
You must take care while transacting and carrying out payments to maintain security and privacy.


Different sourcing agents have different fee structures and costings so it is better to look around.

There is also a chance that you would prefer a certain sourcing agent for their pricing structure and not the cost.

Commission and Percentage of order

  • Commission based contracts are common and frequent.
  • Commissions range from 5 to 10 percent based on the frequency of orders and rates.
  • If you are placing high orders which have high demand like rice, or the value of the order is above $500000, the service charge is around 3 percent or less based on the order value.
  • If you have a large or small order based then a commission based fee structure works best.

Flat fee/ Fixed fee per order

  • This is the fee agreed upon before the commencement of the project.
  • You can directly contact your suppliers and have a business relation with understanding. They usually charge less than $100 for each product.
  • Some professional buyers prefer to employ a full time sourcing agent for tasks like finding suppliers and communicating with suppliers and buyers. They give out these positions for months or weeks.
  • However, with an already established relationship, it can be difficult to negotiate every time.

Hourly fees

  • This is the fees that is paid for an hour of service
  • It helps you to control the hours a sourcing agent works and this helps you to keep your cost in check. Small businesses can work accordingly so as to avoid huge bills.
  • The results can fluctuate and this makes room for bad agents.
  • Some bad agents may only work for 8 hours but claim that they worked for 15 hours and charge you for that since there is no way to figure out the exact hours they needed.


Essentially, the sourcing agents and sourcing companies are similar in their work objectives ( they serve as a link between the buyer and seller) so it all depends on your needs and conditions. Think carefully and make your decision.

Do you have any other questions about sourcing agents/companies? If you want to find an Indian sourcing agent, you can contact us, we are one of the leading India sourcing agencies.