Choose an agent when
- The product is simple and close to catalogue
- You know the category and need introductions in one region
- Orders are small or one-off
- You can check quality yourself
Compare · who does what
Sourcing agent, sourcing company or inspection company?
A sourcing agent introduces suppliers and is usually paid a commission. A sourcing company qualifies and manages suppliers as a service you pay for, and an inspection company checks goods and factories without choosing the supplier. Choose by the job: introductions, a managed supply base or independent checks.
At a glance · best for
- Sourcing agentIntroductions to suppliers in one region
- Sourcing companyFinding, qualifying and managing suppliers
- Inspection companyIndependent checks on suppliers you already use
7 criteria · no brand names · prices published
Side by side
The 7 things that decide it.
The same criteria for every option: how you pay, who answers for the result, how fast it moves, what can go wrong, who holds the supplier, what evidence you get and what tends to cost extra.
| Criterion | ASourcing agent | BSourcing company | CInspection company |
|---|---|---|---|
| 01Cost model | Usually a commission on order value, paid by you, by the factory or both. It can also sit inside the unit price. | Fixed project fees, a monthly retainer or a percentage of order value, invoiced to you. | A fixed fee per inspection day or audit, agreed before booking. |
| 02Accountability | Introductions and follow-up. Responsibility for quality often ends at the introduction unless the contract says otherwise. | The supplier choice, the specification hand-over and the quality plan, as written in the scope. | An accurate report on the lot or factory on the day. Not the supplier choice or the fix. |
| 03Speed | Fast for known products inside the agent’s network; slower outside it. | Slower to start, because scope, NDA and quality plan come first; faster on repeat orders. | Bookable at short notice for a single job, with no ramp-up. |
| 04Risk | Conflicts of interest when factories pay the agent. Knowledge often sits with one person. | Depends on the team’s depth in your category. Check who does the work on the ground. | Finds problems but does not prevent them upstream. A rejected lot still needs a plan. |
| 05Supplier relationships | Often held by the agent. Some agents do not disclose the factory. | Should be named and shared with you. Confirm this in the contract. | Entirely yours. The inspector visits your supplier on your instruction. |
| 06Compliance evidence | Rarely in scope. Certificates are passed on as received. | Can include declarations, test reports and traceability data collected during production. | Inspection and audit reports. The evidence covers what was checked, on the day it was checked. |
| 07Typical hidden costs | Mark-ups inside the unit price; switching costs if the agent holds the factory relationship. | Scope changes, samples, courier and travel outside agreed areas. | Re-inspections, travel to remote factories and late-cancellation fees. |
NoteWhere SourceSquid sits: a sourcing company with its own inspection team in Bengaluru and Ningbo. Clients pay us directly; we take no factory commissions.
When each option is right
Pick the option that fits the job.
Every option here is the right answer for someone. Match it to your product, your volumes and the people you already have.
Choose a sourcing company when
- You need suppliers qualified, not just found
- The product has drawings, tooling or a compliance file
- You want one team accountable from shortlist to shipment
- You are adding a second country, such as China + 1
Choose an inspection company when
- You already have a supplier you trust
- A customer or bank asks for a third-party report
- You need checks in many countries in one format
- Your own team manages the supplier
When SourceSquid is not the right choice
- You only need a one-off introduction to a catalogue supplier. An agent or a marketplace costs less.
- Your factories are outside India, China and Vietnam, plus Indonesia and Thailand for selected categories with partner inspectors.
- You need laboratory testing only. Go straight to an accredited laboratory.
- You prefer a partner paid by the factory rather than by you.
We would rather say so now. If one of these fits, we will point you to a better route.
Before you sign
Questions to ask, whichever you choose.
- Who pays you?Ask whether any factory pays a commission, rebate or fee, and get the answer in writing.
- Will I get the factory’s name?You should know the legal entity, address and contact for every supplier you buy from.
- Who visits the factory?Ask whether they are employees or subcontractors, and where they are based.
- Which sampling standard do you use?Look for ANSI/ASQ Z1.4 or ISO 2859-1 sampling with agreed defect classes.
- Can I verify a report?A report code you can check independently protects you from edited or reused reports.
- What happens when a lot is rejected?Agree in advance who pays for rework, re-inspection and delay.
SourceSquid prices
All prices Published, fixed and in USD.
- Supplier shortlistUSD 390named manufacturers, checked by calls; USD 890 with 2 factory visits
- Sourcing programFrom USD 990per month, or 7% of order value
- InspectionsFrom USD 229per person-day, travel included within main clusters
- Factory auditUSD 298per 1-day audit
Prices exclude local taxes. Every invoice matches the fixed quote you approved. The 48-hour sourcing teardown is free.
Questions buyers ask
Straight answers.
Anything else, ask us directly. A principal replies, not a bot.
[email protected]What is the difference between a sourcing agent and a sourcing company?
A sourcing agent mainly introduces suppliers and is usually paid a commission on orders. A sourcing company qualifies suppliers, manages development and quality, and is paid a fee by you under a written scope. The agent is lighter and cheaper to start; the company takes on more accountability.
Are sourcing agents paid by factories?
Some are, some are paid by the buyer, and some are paid by both. Neither model is wrong in itself, but you should know which applies. Ask in writing whether any supplier pays the agent a commission, rebate or fee.
Do I still need an inspection company if I use a sourcing company?
Not always. If your sourcing company inspects with its own team, ask for the sampling standard and a report you can verify. If a customer, retailer or bank requires an independent third-party report, add an inspection company for those shipments.
Which option costs least?
Per job, a single inspection day is the smallest bill. An agent commission can look cheapest because nothing is invoiced up front, but it may sit inside the unit price. Compare the total cost of the order, including rework, delays and switching costs.
Where does SourceSquid fit?
SourceSquid is a sourcing company with its own inspection team in Bengaluru and Ningbo. We find and qualify manufacturers, inspect production and collect compliance evidence. Clients pay us directly: supplier shortlists cost USD 390, and inspections start from USD 229 per person-day.
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