Choose agents located in matched industrial clusters, finish business license check, contact old foreign buyer references, add blind inspection anti-kickback clauses on contracts, and avoid disguised trading companies on Alibaba.
Key red flags include refusing third-party QC, blocking buyer-factory contact, requiring full fund transfer to their account, no official business license, and no written delay compensation rules.
Foreign owned sourcing companies have western legal protection and better compliance check, but charge higher commission. Local Chinese agents have stronger factory price negotiation ability and lower service fees, but need strict anti-kickback contract limits.
Do not ask about lowest price or simple QC service. Ask about delay liability insurance, original factory invoice access, uninformed third-party inspection rules and past quality claim handling cases.
Add unannounced blind inspection clause, kickback forbidden rule, double compensation for hidden quality defects, and clear refund rules for delayed shipment.
True sourcing agents allow buyers pay factories directly and collect separate commission. Disguised traders require all order money pass through their account, and profit from hidden product price markup.
Verified Google corporate agencies for bulk orders, matched industrial on-site agents at Canton Fair, registered niche agencies; avoid random Upwork freelancers and unvetted Alibaba agent accounts for large orders.
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