Comparing 3 types of sourcing company in China, Choosing the most appropriate one.
1.The commissioned agent: Based on the premise of trust ,you may pay the agent a fixed proportion(usually 5% to 10%) of total purchasing amount for the order that he follows. Also, there is a risk that commissioned agents will get money from the factory without telling buyers.
2.The trading company: If you purchase small quantity and don’t want to handle all the details of China production, you might need to work with a trading company. They can find small factories which are unable of dealing directly with oversea customers but are interested in the small orders.
The trading company adds its margin based on manufacturer’s price. That’s why many professional buyers want to “go direct”. But it is not rational because sometimes a trader might still be cheaper than a large factory even they add their margin.
3.The third party service provider: As the saying goes, you can eliminate the middleman,but you’ll have to take over the functions he performs or subcontract them to a third party.
If you place large orders, many manufacturers are willing to take the time to respond to a third-party’s inquiries. And the service fees will probably be low.
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