China sourcing agent fees, in the open
By George Korn, Founder · Last updated September 8, 2026
Most sourcing agents in China are free, and that is exactly the problem: their real income is a hidden margin added to your factory price, plus kickbacks from the suppliers they choose for you. Our model is the opposite: a flat, visible service fee agreed before we start, and the original factory invoice shown on every order. You always know what the factory charges and what we charge.
How agents in China actually get paid
| Model | What you see | What really happens |
|---|---|---|
| “Free” agent | No fee, great prices | A margin of 5-15% is baked into the factory price; the supplier that pays the biggest kickback wins your order |
| Commission on order | 3-10% of order value | Honest when disclosed, but the incentive rewards a higher factory price |
| Flat service fee | A fixed, visible amount | The agent’s income is independent of the factory price; incentives point at your cost, not against it |
The kickback economy is the industry’s worst-kept secret and the single biggest reason buyers eventually audit their supply chain and find 20% of air in it. It is also why we publish this page.
Our fee structure
Sourcing and negotiation
Supplier shortlist with audits, compared quotes, negotiation and contract: a flat fee agreed on the brief, typically the equivalent of a few percent of the projected first order. You see the original factory quote and invoice; our fee is a separate line.
Quality control
In-production checkpoints and 1-by-1 pre-shipment inspection with photo and video reports, billed per inspection day at a published day rate, not as a percentage of anything.
Logistics and platform buying
Freight at documented cost plus a fixed handling fee. 1688 and Yiwu consolidation runs on the same principle: platform price visible, service fee visible, no spread hidden in the exchange rate.
What a China sourcing fee should include
Compare scopes, not percentages. A serious quotation names, in writing: supplier identification and audit, quotation benchmarking (including a 1688 price check), negotiation and contract in Chinese, sample management, production follow-up, defined QC checkpoints, and export documentation. Common exclusions to watch: inspection days billed separately (fine, if the day rate is published), lab testing and certification fees (always third-party), freight and duties (documented cost), and mold or tooling payments, which must go to the toolmaker against a mold-ownership agreement in your name, never through an opaque intermediary.
Percentage or flat fee is mostly a question of order size: below roughly $10,000, a percentage under-pays the work and a flat fee is honest both ways; on large repeat programs, a capped percentage or a retainer keeps incentives aligned. What never changes is the visibility rule: the factory invoice in your name, our fee its own line.
Three questions that expose hidden margins
Ask any agent, including us: Will you show me the original factory invoice? Is your fee independent of which supplier I choose? Can I contact the factory directly? A no to any of the three tells you where the real margin lives.
“An agent who hides the factory’s name is charging you a hidden margin. We charge a visible fee instead, and the factory’s invoice travels with every order.”
A worked example on a $20,000 order
| Model | What you pay | True cost of the service |
|---|---|---|
| “Free” agent | $20,000 all-in | an invisible $1,500-3,000 spread inside the goods price |
| 8% commission | $20,000 goods + $1,600 fee | $1,600, but the agent earns more if the goods cost more |
| Qiao flat fee | factory invoice (say $18,400) + fixed fee + freight at cost | the fee, visible, agreed before we start |
What the fee includes: supplier vetting and license checks, negotiation, contract and spec sheet, sample coordination, one in-production checkpoint, and the export document set. Billed separately and always at documented cost: inspection days, freight, duties, and platform purchase amounts. Never billed at all: supplier-side commissions, because we do not take any.
Fees FAQ
Why not just use a free agent?
Because free is a price you cannot audit. The hidden spread typically dwarfs any honest fee, and the supplier selection is biased toward whoever pays the agent most, not who serves you best.
Is a flat fee worth it on small orders?
On very small trial orders a platform purchase with basic checks may be enough, and we say so. The flat-fee model earns its keep from the first real production order onward.
Do you take supplier commissions?
No. Our engagement terms exclude supplier-side payments, and the original invoice policy makes the promise verifiable rather than rhetorical.
Get a quote with nothing hidden in it
Send your brief. You get the factory’s price, our fee, and the freight: three visible lines.
Get a free quote →