If you want a sourcing company in India that takes no payment from factories, look for an agent that you pay directly, under a written fee, and that takes nothing from the suppliers it recommends. The simple test is who pays: an agent paid by the buyer has one client, while one paid by the factory has two.
Searchers describe this as a buyer paid sourcing agent. The label matters less than the arrangement behind it.
Why who pays changes the advice
An agent is paid for placing orders. If the money comes from the factory, the agent earns more when you order more from that factory, whether or not it is the best one. That does not make every such agent dishonest, but the incentive is there, and you cannot see the amount. Agent paid by you vs paid by the factory compares the two models.
When you pay the agent, its recommendation does not depend on which supplier you choose. It can tell you to reject a lot or leave a supplier, without losing income.
How to check that your agent takes nothing from factories
Do not rely on a promise. Ask for evidence and put it in the agreement:
- A clause that the agent receives no payment, gift or discount from any supplier it recommends.
- A full disclosure of every supplier the agent has an existing business relationship with.
- Open quotes from suppliers, sent to you directly or copied to you, so you see the price the factory asked for.
- The right to contact and visit suppliers yourself.
Checking your agent takes nothing from factories gives more detail. Watch for the red flags listed in sourcing agent red flags.
How fees are usually set
Agents charge in a few ways: a fixed fee for a defined job, a retainer, or a percentage of the order. A percentage paid by you still ties the agent to a bigger order. A fixed fee for a clear scope keeps advice neutral. We do not quote fees here. See fixed fee vs percentage of order for the trade-offs and what a sourcing agent in India costs for what drives them.
A simple check helps: ask the agent to describe, in one sentence, how it earns money on your order. If the answer is long or vague, or mentions suppliers, ask again. You should be able to read the whole arrangement on one page.
How we work
One simple check helps: ask the agent to describe, in one sentence, how it earns money on your order. If the answer is long or vague, or mentions suppliers, ask again. You should be able to read the whole arrangement on one page, and every fee should have a name and a date.
Creston works only for the buyer. We find and audit manufacturers, check samples and documents, have lots tested, and supervise production and loading, for one written fee agreed in advance. To see how that works for your order, book a free sourcing review.