A sourcing agent works between you and factories. Agents may find and vet factories, negotiate prices, follow up on samples and production, arrange inspections and coordinate shipping. Working directly means you do those tasks yourself or with service providers you choose. Both can work. The right choice depends on your time, experience, order size and how complex your products are.

How agents are paid

Agents are commonly paid by a commission on the order value, a fixed fee, or a margin included in the price they quote you. Ask how the agent is paid and whether they also receive money from the factory. An agent paid by both sides has a conflict of interest. Ask for the factory's name and address, and whether you can visit or contact it.

When an agent helps

An agent is useful when you have little sourcing experience, need several product types from different factories, cannot travel, or need someone on the ground to follow up daily. A good agent can save you from poor factories and help you communicate specifications clearly.

When going direct makes sense

Working directly suits brands with clear tech packs, enough volume to interest a factory, and staff who can manage communication and quality. It gives you a direct relationship, clearer pricing and full knowledge of who makes your product.

Put it in writing

With an agent, agree the scope of service, fees, who signs the purchase order, who is responsible if goods are faulty or late, and that you will know the factory identity. With a factory, agree the delivery terms using an Incoterms rule with a named place, quality requirements including inspection under a plan such as ISO 2859-1, and payment terms.

Independent checks

Whichever route you choose, consider an inspection service that reports to you, not to the agent or factory, especially for the first orders.

Review the arrangement after a few orders. Many brands start with an agent and move some styles direct as they learn. Keep copies of all specifications, approvals and inspection reports in your own files, so the knowledge stays with your brand whichever route you take later.

Also check who owns the patterns, samples and any tooling paid for during development. If you later move direct or change agent, you will want those items and the factory contact to stay available to you.