5-20k/month on a single SKU, the margin lift, shipping speed and brand-build moves a sourcing agent unlocks become non-negotiable. Today: the spend threshold, who to pick, and the questions to ask before you sign.
What a sourcing agent actually does
A sourcing agent is a Chinese-based operator (or company) who:
- Takes your orders directly (often via Shopify integration or daily CSV)
- Buys inventory in bulk from factories at 15-30% below AliExpress retail
- Stores it in a warehouse in China (or sometimes US/EU)
- Packages and ships under your branding
- Provides custom packaging, inserts, branded thank-you cards
- Often offers AU/US/UK shipping at 4-7 days via private freight forwarders
The trade-off:
- Better margins (15-30%)
- Faster shipping (often 4-7 days)
- Custom branding (real brand-build)
- Volume commitment (typically 100+ units/month or A