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 resells them to you with a margin on its purchase price. You are buying from a trader. An agent buys nothing. He represents the buyer and brings that buyer together with a manufacturer from his network. Orange King works the second way.

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

For the buyer. In practice that runs two ways. If you want direct contact with the manufacturer, that contact is made and the correspondence runs through you. If you would rather not, the correspondence is taken over and you keep a single point of contact. Both happen, and it is your call.

When is an agent cheaper than importing directly yourself?

Finding reliable manufacturers in a country like India takes time. Nearly every supplier in this network has been visited on site during years of travel: the way they work is known and the production facilities have been seen. That means it is clear up front what a factory can and cannot make. It saves you the round of finding that out yourself, with the samples and misunderstandings that come with it.

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.