Here are the top bad experiences brands have with sourcing agents. 

Many brands that first speak with us have already worked with a sourcing agency before. Oftentimes they had a bad experience. 

Here are the top 3 reasons: 

1.) Many agencies secretly inflate costs 

Many product sourcing agencies will get you interested with a promise of “pay nothing until your order ships.” Or that you’ll only pay a “low hourly rate.”

But what you’re often not told is that your product cost is significantly inflated. They add their own commission, and also receive an introduction commission from the factory. This, in turn, causes the factory to increase the unit cost. As the agency continues to assist with services in the process, they receive additional kickbacks. 

Then you pay an ongoing premium on every order in perpetuity. Which brings me to the next point… 

2.) Many agencies don’t share the factory’s name

If grossly inflated costs aren’t bad enough, many agencies never share the factory’s contact information with you. They prefer to hold you captive, so that every order needs to go through them. 

Imagine selling your brand years later and not having the factory info to share with the buyer? 

3.) Many agencies don’t introduce you to the best factories 

They may introduce you to the “best” factory, but all too often it’s the best factory for them, and not you. In other words, they get the best kickback from that factory. It’s like a real estate agent who brings you to see a house that gets them the most money in their pocket, rather than the house that is actually perfect for your family.

This can result in subpar quality and possibly higher pricing from a factory who isn’t best positioned to make your product. 

This all makes for a challenging environment to operate in as a brand. 

Outsourcing your product sourcing needs can be a great way to leverage someone else’s experience while saving you time and money. But how do you find a trustworthy agency? 

This is the question that led Xiaofeng Wu and I start China Product Pros. 

We are a no-commission, always-on-your-side agency that finds our clients the best factories for them. 

We always share the factory contact information. Many clients work with us order after order but sometimes our operating model means the client goes off to work directly with the factory. But if that’s best for the client, then that’s what’s best. We don’t want to hold anyone hostage by withholding the factory info. From a business standpoint, it also means more positive word of mouth from our previous clients. 

Make sure your agency is in your corner

So whether you work with us or another sourcing agency, it pays to know what you’re getting yourself into. The top question should be “are they in my corner?“

Because with the right partners in your corner, you can focus on growing your business and selling more great products to happy customers. 

Happy sourcing!