Sourcing agent or trading company: which saves you money?

Between you and a factory in India or China there is almost always a third party. That can be a trading company or an agent. The difference decides who you buy from and who that party represents.

What is the difference between a sourcing agent and a trading company?

A trading company buys the goods itself and sells them on to you at a mark-up. An agent does not buy the goods. It represents the buyer and puts them in touch with a manufacturer from its network. Orange King works as an agent.

Does a sourcing agent work for me or for the factory?

For the buyer. In practice that can work two ways. If you want direct contact with the manufacturer, you are put in touch and handle the correspondence yourself. If you would rather not, the correspondence is handled for you and you keep a single point of contact. Either is fine; the choice is yours.

When is an agent cheaper than importing directly?

Finding reliable manufacturers in a country like India takes time. Ed has visited nearly every supplier in this network himself on his travels. He has seen their production facilities and knows how they work, so it is clear up front what a factory can and cannot make. That saves you finding it out yourself, with all the samples and misunderstandings that involves.

Can one agent handle both home textiles and pet products?

Yes. Both categories run through the same network, and both offer the same choice: private label under your own brand, or buying from an existing collection.

Whether your product fits a factory in this network is usually clear from a short description of the item.