Ethical sourcing From Indian Trade depot

Ethical sourcing

There are various companies around the world that provide good and affordable sourcing agents. One of them being Indian Trade Depot.

Why should you choose Indian Trade Depot?

The answer is simple. Indian trade Depot is a company that is available globally and has offices in India and UK. Indian trade Depot gets clients from US UK India and Europe.

It ensures that you get the best price available for the product as well as it connects you to various producers and consumers.

Indian Trade Depot assigns sourcing agents who are experienced and thus help you in all the steps that you need to take. It saves you a lot of hassle and time. The company ensures that your production and manufacturing process becomes easier and you save costs that are not required.

We assist in all the steps that a person takes in the manufacturing process. We help you to pass the quality check, ensure that the shipment goes through, the goods are loaded and deported easily, the prices are affordable and thus help you to gain profit.

Why Indian Trad depot For Ethical Sourcing

  • Indian Trade Depot is a small family-owned business so we completely understand and feel the problems of small entrepreneurs and businesses. The team members thus ensure that the project is completed successfully. Be it the starting stages or the last stages, the Indian Trade Depot team members do not leave you alone to deal with all the hassles that come along with sourcing the products required.
  • Low and affordable pricing is one of the best features Of the Indian Trade Depot. The members understand that entrepreneurs in small businesses need to reduce the overhead cost of production and maintenance and therefore we offer one of the lowest minimum order quantities and pricing all over India.
  • Being a small family-owned business, the Indian trade depot understands the importance of having a long-term partnership. We have customers and manufacturers who have worked with them for generations.
  • The Indian Trade Depot provides a wide range of services to ensure that our customers do not have to hassle and struggle in the various steps of production. We aim to provide our clients with a one-stop solution in India. We help the clients in reducing the cost and time that they have to spend in the various stages of production.

Indian trade Depot sources products related to various kinds of categories for example apparel, bath, curtains, furniture, floor lamp, home decor, kitchen, cushions, rugs, storage furniture, serve ware, and sofas.


There are various kinds of artists and industries present in the world which deal in Products that have a sustainable and ethical need in today’s world. So why should you choose to source from artisans and small-scale producers instead of machine-made goods?

Why should you source from artisans?

You should source your products from artisans and small-scale industries as they support the local economy and they are handmade Along with being made with care and a lot of effort.
There are various ways to sell your products online and various rules that are required to fulfill that requirement. That is why you should think wisely before starting your business but once you decide to start your business, you should invest your time and money in the correct sourcing companies as well as the best product quality available in your price bracket. Artisans in India have all the required talent and opportunities, all they need to work on other correct marketing strategies, the amount of raw material available, shipment procedures, and charges. They should think of the best way to make a profit without suffering a loss themselves.

For Free Quote Contact Us at Indian Trade depot.

product sourcing strategies for artisans

the best e-commerce product sourcing strategies for artisans

Every person who likes to Shop loves to see the word handmade on their product. However, when it comes to product sourcing for handmade goods, the best way is to source the products yourself. However that is not all, even if you source the products yourself there are still other variants that you have to deal with such as marketing, storing and transferring, and shipment, not to mention product sourcing is also required for the raw materials Using artisans.So what are the various ways by which you can turn your talent into a business which gives you profit?

Here are some of the best ways mentioned.

Firstly the question arises: Who are artisans? The answer is simple artisans or people who make handmade products, typically jewelry and custom furniture along with home decor. Artisanal products are known for their unique traits along with features that are not found in other commercial products making them very popular among certain niches.

Artisanal products are known to be better than the goods that are manufactured by a company. Home-made or handcrafted products are known to be reliable and durable and that is why human touch is required and preferred by shoppers.

Who deal Handmade industry

Handmade industry is no longer restricted to being only traditional craftsmanship. Artisans can deal with all kinds of products that are handmade or homemade. For example paintings, stickers, vases, home decor, personal care products, pottery, pet products etcetera There are certain online platforms like Etsy and they specialize in homemade products.
Etsy and Amazon hand-made are some of the most popular websites which are available worldwide and are known to be the best place to sell your handmade products. We will be talking more about them in the upcoming sections.

Problem with Artisen

However the one problem that artisans face is that they are extremely talented and make the product but they lack the marketing skills required and their products are sometimes not worth the price. That is why all artisans should consider if they think that their products are worth selling or is it just an occupational hobby that you have taken up. The market out there is very competitive and wide and that is why artisans should thoroughly examine their products and take more and more time in an effort to bettering the quality of the product. It is ultimately their decision if they want to invest the time in the money required to sell their products and this or only believe that they will gain profits from their activity then they should go ahead and start working on all aspects of trading in artisanal products. Sometimes, the products do not sell for what their worth, and all your time and effort may get wasted. There is also a chance that you have put in more overhead costs while producing than the price for which the product is ultimately sold. This creates a problem but here we are suggesting to you some ways to cut down your cost and thus make more profit when you sell your products.

The Best Product Sourcing Strategies for Artisans

Obtaining your raw materials in the best way

For artisans one of the most profitable ways of cutting losses and making more profit is to practice sourcing strategies like buying in bulk and also negotiating with suppliers. This may not seem like a big step but it can help you to minimize the overhead cost. For example, you should check online directories and other social media communities to find out which are the places that specialize in the material that you require. When you find the supplier that suits you buy in bulk so that you don’t have to keep repeating your order and that you save the cost of shipment. Do not back away from negotiating because there is always a chance that the negotiating will help you to reduce your cost. Even though artisans don’t have to worry about the competition for certain raw materials, it is important to follow the sourcing strategies that we have put up because this can help them in the long run. When you take up a hobby and convert it into business there are some specific strategies that can really help you to smoothen this transition.
Sourcing your raw materials correctly is as important as sourcing the products that you would. It is important to not overlook the overhead charges that are invested in creating a product since ultimately they will decide if you make a profit or loss. small-scale industries and artisans have to be very careful while sourcing the raw materials.

Be open to customising your products

One of the main advantages of reducing handmade goods is that you have the chance to be open to customization. Customization attracts a lot of customers and it can be really beneficial as machine goods cannot be customized according to the customers’ needs. You do not need to customize your product completely; some small changes can also make a huge difference. For example, changing the color according to the customer’s choice or writing the name of the customer on the product can be a good way to customize your product. You can also offer the customer a chance to write a message or names or initials or date right onto the product and this creates a special effect.

Customers all over the world today prefer to buy handmade products because they can be customized and tailored according to their needs. This is why it is very important that you keep their options open and accept their needs and demands. Even though a small change does not make a very big difference to you it is a big step for the buyer sometimes. Nowadays, customized items are in trend. Some customized products that are available in the market include customizing T-shirts, customized phone cases, customized photo frames, customized laptop covers, customized stickers, customized pens, and jewelry. Customers are sometimes willing to pay more for a customized item since they know that the process has to be altered according to their needs. This is a big reason that handmade products have become something of a trend right now.

Follow retail marketing strategies as well

Keep an eye on all the upcoming sales and discounts that chain stores offer. This can help you to receive your products at a lower price rate or you can refer to a supplier and negotiate with him to get better prices.

This means that if you source it from places like huge market areas then they will have particular discounts and schemes that you can make use of to improve your own business. However, do not worry even if you source it from a local sourcing agent. In such a scenario you can simply discuss and form relations in a way that benefits both of you and the prices are affordable as well. There are various product sourcing strategies that you need to follow when you are trying to gather crafting materials from various retail arbitrage sellers. You should try to keep a check on when they are reducing the prices for their products and try to learn the mark-down schedule. Chain craft stores are a great way to buy products because they offer various sales and the sales can be beneficial to you. You should sign up for emails and provide your phone numbers because they often announce sales and promotions a day or two earlier via phone numbers and emails. This may help you to be in touch and keep an eye on the store without having to visit it often.


The conclusion above is that the toughest part of being an artisan seller is that you have to work both as a manufacturer and as a marketer. These are both time-consuming and tiring jobs as we need your full-time attention. However, there is no need to be upset. You can deal with both of them with ease if you know how to employ better strategies that help you to manage all the jobs that are related to handmade and homemade products. For example, if you buy your material in bulk, you will not have to worry about sourcing that product for a very long time. This will give you a longer period of time to worry about more upcoming and important matters that need your attention. The more you work on coming up with better strategies, the better it is for your business. However by following proper strategies you can get the best of both worlds.

For Free Quote Contact Us at Indian Trade depot.

What kinds of handmade items sell best?

What kinds of handmade items sell best?

There are various different kinds of handmade products available on the internet these days. There are some niches with handmade products that sell well compared to other kinds of products. However, it all depends on the quality and skill of the product making and the niche alone cannot determine anything. It is advised by various experts that you should take up the news that you are interested in but there is one thing that you have to be very careful about. No matter which niche you choose, it is important that you understand the roles and regulations that are concerned with selling and trading in that particular niche. Before you enter the market you should be aware of the prices, expectations, the kinds of products available in that niche and also the regulations that guide all of the above. Nevertheless, here are some of the most popular niches for the handmade industry.

  • Health and beauty products:Health and beauty products have always been high in demand and being handmade make the products more in demand. Products like soaps and bath bombs, lip balm, creams and lotions along with cosmetics or a wide range of items that can be made by hand and sold as part of your business. DIY health and beauty products are among the top-selling homemade products of all times. All you need to do is ensure that your products comply with FDA standards. Once you have the assurance of everything, you can start selling your products online.
  • Clothing and apparel:Custom clothes and apparels have always been in demand. People who have a creative flow and artistic imagination can easily get into this business and make some money. Thanks to the availability of the internet and online sources, selling your products has never been easier. Clothes are no exception to this as some people prefer to have custom made clothes which tailor to their choices and personality rather than machine-made clothes. Various entrepreneurs have started with a clothing line thanks to the availability of online websites and online customers. Some items like bumper stickers, T-shirts, hoodies, mugs, enamel pins, coasters, face masks, pillows, towels are customised for customers and sold online very easily.
  • Jewellery :next on the list is jewellery. Jewellery is a popular item that is sold online thanks to its easy shipping and low production costs. The buyers often look through websites and find the jewellery that they like and try to support artisans by buying those products. Jewellery has a wide range of availability and that is why the competition in this field is a little high. If you want to stand out your jewellery has to be a little different from others and it will surely be a hit then. The only drawback with having a jewellery store online is that customers do not get to try the jewellery on before buying it and that is why you can utilise sites like Jewelfie and the Kiwi size chart and recommended which helps buyers to have a thorough knowledge of the sizes before buying your product. This helps in satisfying the demands of a customer without having to put into place a return policy.
  • Candles : Candles are one of the most popular homemade products as they are simple to make, allowing a person to be creative with the sense and colours, you do not need a large capital to start with the candle making business. Various handmade artisans take candle making as an art and soon make it into the business. Some of the most popular types of handmade candles are eco-friendly candles, all-natural candles, religious candles, birthday and novelty candles, and beeswax candles. Candles are also cheaper to produce compared to other goods and they can be easily customised as per the owner‘s request. There are various types of scents and colours available in the candle making business and that is what attracts buyers to buy your special candy. The only thing well-making candles is to keep yourself protected and to be aware of the local laws and regulations regarding your business.
  • Traditional handcrafted products :Traditionally handcrafted products have always been one of India’s most desired and loved items. India has always known to be a country of art and architecture. From the very olden ages, Indian artisans have been popular all over the world for their creative looks and good quality products. Products which are handcrafted with traditional items are rare and costlier compared to other products. This is because the required kind of material might be rare or they are unique and they cannot be mass-produced with the help of a machine. However, lovers of art and craft are willing to pay for unit and premium quality goods as these goods are not produced by machines and are now rarely found all over the world. Traditionally handcrafted products are a form of art and this art is becoming rarer by the minute. If you have the gift of creating one of a kind and creative products then this is your stream to be. Products that are created after leatherworking, glass blowing, embroidering, sewing are all known to be traditionally handcrafted products. These products might not be completely DIY but you can still set up a business with the help of your skills and few tools. Some examples of handcrafted things are wooden furniture, leather purses, glass or metal art, custom metal spoons and folks.
  • Pottery and clay objects: To produce pottery and clay objects both time and money is required. However, pottery making is an art and people are willing to pay for a good pair of antique as well as unique pottery items. It may take a lot of time and commitment to learning poetry as a skill but it is always rewarding. If you decide to go into this business of pottery making, there is one thing that you need to keep in your mind. You have to make sure that your initial investment cost and production costs are low. How would you do that? You have to ensure that your raw materials are sourced from cheaper sites that can provide good quality clay needed to make your pots. Keep an eye on how much your income is from platforms like Amazon handmade, Shopify, Etsy, et cetera and then make a decision on how much cost you need to invest for your next step.
  • Hand drawn stickers:Many people are unaware that hand-drawn stickers have now become something of a trending object. Stickers have actually been in demand since the year 2018. The reason behind this is simple. Stickers are easy to manufacture and easy to transport. Which stickers, the cost that is invested is not very high and that it is easier to get into this business. Since stickers are not heavy objects you can easily transport them to the required destination. One more reason the stickers are so trending around the world is that stickers can be easily customised and if these are hand-drawn, the market is unlimited. You can easily customise the stickers according to the buyer’s requirements and ship them to them as soon as possible. Custom stickers are often used as gift products, home decor products nowadays and this is because they bring a bright and beautiful feel to whichever place they are placed in. Stickers are not very expensive on the platform and can be easily afforded by people who wish to brighten up their room. As gifts and decorations, the value of stickers has gone up and customised stickers are a cherry on top.
  • Handmade journals and scrapbooks: Handmade journals in scrapbooks have been in trend ever since people realised that digital planners and calendars are not attractive to the eye. People all over the world prefer to handwrite their writings and thoughts into a handmade journal Or scrapbook. With handmade journals and scrapbooks, shipment is not a big issue and they’re easy to customise. Customers are attracted to the various customised options that are available in the market and they like the look and feel of writing in a proper book. People have come up with creative ways to sell their products on the internet. For example, leather-bound books have been trending for a very long time now and this is because the leather feel of the journal is attractive to people of rustic style.
  • Pet products: Without a doubt, this item is the most surprising one on the list. However, the statistics show that people have been investing in pet supplies consistently and the capital is not a small amount. Pet owners are willing to pay whatever the price is to get their pets the best quality material available in the market. That is why if making pet products or caring for pets is your speciality then this is a good market to enter into. Anything and everything that is created for pets is a requirement and is sold for a good price.

    Be it pet toys or pet care products, the market is always ready to accept more and more pet products. Pet food is of course on the top of the list. Various companies have come up with creative ways to get ahead in the pet market. Companies have come up and health-conscious, gluten-free and allergen-free dog treats. The market isn’t restricted to dogs or cats. Companies can come up with ways to provide pet supplies for birds, reptiles, rodents et cetera. A few examples of handmade pet supplies include pet clothing, pet food, tags leashes, food bowls, toys et cetera. The above products are just examples of items that self best with handmade. The market for handmade products is increasing day by day and many kinds of artisans have come into the business. You can choose the products that you are passionate about and work on them to make it a business. There are no limits to what one can achieve if they’re passionate and creative about a particular thing.

For Free Quote Contact Us at Indian Trade depot.

Types of Sourcing agents

Different types of Sourcing agents

Here are the different types of sourcing agents found in the market:

Single sourcing agents

  1. Single sourcing agents are agents who work independently and there are no records of their earlier performances.
  2. their supply and manufacturing networks are small. So, if you depend on their services, you are completely dependent on them.
  3. Moreover, you cannot expect the best quality when you cannot witness their working. They might simply blend in the market as there are various big sourcing companies out there. There is also a chance of you getting cheated.

Sourcing Agencies

  1. Sourcing agencies are umbrella organizations with various sourcing agents working for them. They have all these agents at their disposal and can make a variety of products available to you, according to your needs and criteria.
  2. Depending on the clientele requirement, these agencies can avail the best sourcing agents in the fields of beauty, garments, furniture, etc.
  3. They have wider networking with a stronger connection and deeper knowledge of the markets. However, they charge higher rates as compared to freelancing agents.

Full Service Sourcing and Logistics companies

  • They offer the widest range of sourcing services but they also charge the highest prices for the services they provide. They have the most versatile sourcing agents.
  • In addition, they also take care of shipping, statistics, quality checks, etc.
  • You can rely on them for all the steps of the process which include manufacturing, transportation, shipment to the Amazon quarters on time. There are various competitions but they take care of it all.
  • However, this makes you completely dependent on them.

Independent sourcing agents vs sourcing companies

A sourcing agent works independently and can be hired on a full-time basis to carry out the needed services. A sourcing agent can work with another 1 or 2 individuals from a small office space or a home space. They have small networking.

These sourcing agents might have several years of experience working in a sourcing company or agency. They can be contacted and hired through their individual google websites or through platforms like Upwork, Fiverr and other freelancing websites.

Sourcing companies are referred to as sourcing agencies as well. In simple terms, a sourcing company has expert sourcing agents working under them. They have individual departments like shipment, manufacturing, quality check, and storage. They can connect various suppliers at once and serve various buyers together.
They are generally located in industrial areas.


Essentially, the sourcing agents and sourcing companies are similar in their work objectives ( they serve as a link between the buyer and seller) so it all depends on your needs and conditions. Think carefully and make your decision.

For Free Quote Contact Us at Indian Trade depot.

How to find the best sourcing agent for your business?

How to find the best sourcing agent for your business?

The following will help you to find your ideal sourcing agent.

Step 1. Define what you need.

The first step requires you to understand your requirements and your needs. List it down You will need criterias like experience, fee structure, area, services provided etc when looking for a sourcing agent. Clearly define your needs to the manufacturer: what quality of products should be used, the delivery time period etc.

Step 2. Set your budget

In this step it is important to think about your budget
The quantity of products you want to produce, how much money you can utilise to create those products and how much you can pay your sourcing agent? Do not worry about creating a fixed budget but create an estimated budget.

Imagine having to choose 10 products and having to contact 100 vendors. This is where the services of an experienced sourcing agent can help you. They care of all this for you and provide you with all the goods required.

Step 3. Choose your type of sourcing company

In the market various types of sourcing companies are found. Each one has pros and cons.Figure out if you want to work with a single agent, a sourcing company or a full service sourcing and logistics company.

Step 4. Research and compare:

In this step you can begin with your researching phase as now you are aware of your needs. Pre-select 3 or 4 agents that can work towards the criteria you set up in. step 1

Step 5: Get different offers and ask for business licences

Connect with the sourcing agents you pre-selected in the above step. You should talk about the services you will require, the cost and prices and how the cost is calculated.

Step 6: Negotiate payments

Having chosen a sourcing agent you just have to negotiate the fee structure and prices with him find out if the price for sourcing services reduce when you re-order

Step 7: Write down everything that was agreed on

Finally note down everything that was agreed Next, you and the sourcing agent should be clear about who will take charge if the quality of products is poor or the shipment isn’t delivered on time. The method of payment and the cost should be noted down and signed by both parties that way the document will be legal and binding.

For Free Quote Contact Us at Indian Trade depot.

Who needs the services of sourcing agents?

Which companies are currently employing sourcing agents?

People who have no/low experience in importing

Importing from foreign lands involves various complications and confusion. People who are just beginning in the field can require the need an expert sourcing agent. So they need the services of sourcing agents.

People who deal in multiple categories

It is a tedious task to choose reliable suppliers because the odds are not great, that is, if you need 2 reliable suppliers for 1 product, you need to find out and contact around 10 suppliers of the product.

Imagine having to choose 10 products and having to contact 100 vendors. This is where the services of an experienced sourcing agent can help you. They care about all this for you and provide you with all the goods required.

Large retailers and supermarkets

A supermarket provides its customers with 100s of products. They cannot take care of all the product sourcing by themselves as they need to connect to 100s of factories as well.

People who deal with special products

It is difficult to source hard-to-find products like ayurvedic products. These products can neither be found online nor in exhibitions. The supplier has to trust the sourcing agent or sourcing company that is experienced in their industry in order to find the products and connect them to buyers.

Buyers who need to place orders with different suppliers and ship them together. If a buyer ships various products in the same container,

the following issues need to be taken care of:

  • It becomes difficult to separate the custom declarations obtained from various suppliers
  • Overtime charges incur when products are to be loaded from various locations and this increases the cost for trailers.
  • If goods are maintained for one supplier and then loaded in the trailer, there is a chance of missing shipment.

This is the reason why buyers employ sourcing agents to check the quality of the shipment, ensure proper and secure shipment, and thus supervise the whole process.

Tips to protect from bad sourcing agents

Kick backs and bribe from vendors/suppliers/factories

Often, sourcing agents tell their possible clients that they do not charge a commission fee on the placed orders but that does not put an end to the conflicts that can arise in the future. Kickbacks, which are financial incentives offered by the factories to the sourcing agent possess as great a risk to the buyer as to the seller Consider a kickback example supposing you get equal prices from two suppliers but one supplier offers a kickback to your sourcing agent then there is a high chance that your sourcing agent will choose this supplier as he stands to gain a profit from this transaction. He might ignore that the quality of the product isn’t the best. If your sourcing agent depends on kickback the following issues may arise

  • The products that you received are lower than your quality expectation or the certificates that you have do not match the product that you deal with and thus your product will become illegal and you cannot import and conduct trade in it.
  • There is a chance that in the future a small dispute may take place over the quality of the product. In such a situation your sourcing agent will consider and excuse the supplier since he stands to gain from him. This will lead to your interests becoming less important

How to find a good services of sourcing agents ?

A good sourcing agent/company helps to maintain and manage a healthy supply chain They not only deliver the best product prices they also take care of the follow-up procedures as customer satisfaction is very important for their business model delivering good service is their job requirement.

They are required to have excellent communication skills.

Identify at least 20 prospective suppliers

Make full use of the sourcing lists available as the more suppliers you connect with, the higher are your chances of securing a good supplier. This can increase your knowledge and reach.

Why do we need a sourcing agent?

  • Vendor base: in India, it is very difficult to catch hold of a good manufacturer since India is such a diverse country its several regions have to be looked into instead of one. An expert sourcing agent should know where the best quality products, that you are looking for, are found.
  • Factory verification: to check the quality of products a visit to the factory is required.However, a good sourcing agent has his own network and can tell you which suppliers are reliable. They have in-depth knowledge of the field and can help you find someone who is suitable.
  • Negotiation: they are also great at negotiating to get you the best price.
  • Bridge the communication and culture cap: very often there are misunderstandings concerning what the buyer says and what the supplier understands.
  • Subject expert: a sourcing agent has a lot of experience in product sourcing. They can help you to gain inside information on the production line and act on your behalf while looking out for you and protecting your interests
  • Reduce risk:: a sourcing agent will help you to train and hire new employees in foreign markets. They help you to cut down costs and save time by not having to visit the factory to keep a check on production. They save your time while identifying a vendor. They ensure that the right documents are present with you. They keep an eye on the quality and ensure that the shipment of products takes place within a limited time. They are aware of the legal procedures and ensure that your documentation and licenses are up to date. They prevent mistakes. As an example printing, the wrong HS code on the shipment can delay your products at customs and thus delay your delivery. An experienced sourcing agent prevents all this

For Free Quote or services of sourcing agents Contact Us at Indian Trade depot.

Questions to ask your Sourcing Agent?

15 questions to ask your sourcing agent?

The very first Questions to ask your Sourcing Agent?

Where is his source office?

Is he fluent in the language of the supplier?

How many years of experience has he accumulated?

Which goods are his speciality?

How do you get in touch with the recommended suppliers?

Would you share the location of the factory and go there with me?

What is your payment structure?

Would you reduce the cost for your services if I re-order the products from the recurring vendor?

What is your work ethic like?

Do you own a business license?

Would I be able to check on the products along with you before and during the process?

Would you be willing to share the contact details of your previous customers?

Do you conduct systematic inspections? At what time intervals and would I get the reports

Will I be kept in the loop for the status of productions of the goods?

On what basis do you choose the factory?

Goals of sourcing agent


  • It is very important for the vendor and the buyer to find out the value.
  • It is not necessary that the purchasing officer will look for the cheapest goods.Even though they try to minimise the cost of production.
  • Goods and services might cost less but that is because they are of poor quality and can lead to hidden future costs


The sourcing agent has the responsibility of checking the quality of the products and services that they source and ensure that it complies with the required standard poor quality goods require to be reworked on. which ultimately increases the expedition and they also produce more waste. To ensure good quality products purchasing officers coordinate with others in production.


Suppliers work hard to meet the required standards for good quality goods and help the company to operate within time limits. Late deliveries lead to delays in the entire supply chain. In order to be reliable, sourcing agents fix schedules with the vendors and ensure proper communication and see that both parties are in the loop.

Strategic relationships

For sourcing agents having a professional relationship with vendors is an extremely important goal. The main goal of strategic purchasing is to obtain the better or same quality of goods while reducing the costs.

To be able to do so, sourcing agents form long-term relationships with suppliers in order to improve the quality and reduce the price of the goods.


Purchasing officers ensure that they get the lowest costs while improving the efficiency of the procurement operations. They work on creating policies that help individuals to deal with the best quality suppliers.

They join hands and act as a link between different departments to make sure that there are no duplicate orders placed.

Do you really need a sourcing agent?

There are 20 questions that can help you decide if you truly need a sourcing agent. Answer all the following questions and follow your first instincts.


  • Have you explored the country from where you want to outsource your production?
  • Have you ever imported goods from abroad?
  • Do you know the risks involved in import?
  • Would you be able to fix these issues if needed?


  • Is there an employee in your company to manage supply orders?
  • If you are the head of the company would you spend a higher percentage of time on the supply change or would you focus on marketing in the next year?
  • When you are importing goods would it be okay to incur less profit or no profit for the one year after it began?
  • Would you manage to visit your chosen country twice a year for at least a week both the time and stay there?


  • Do you have reliable connections in the country where your goods are available for production?
  • Do you have contacts who can help you to clear and declare goods through customs and duties?
  • Do you know of a trustworthy supplier?
  • Do you know a trustworthy shipping company?


  • Are you fluent in the language spoken in the country where your goods are produced?
  • s there an employee in your company who knows the local language of your preferred country?
  • Would you choose a manufacturer who has an office in your area but charges higher as compared to foreign producers?
  • Are you sure that the factory is completely aware of your needs?


  • Are you able to find a trustworthy manufacturer without using the internet?
  • Can you differentiate between a factory and a trading company?
  • Can you handle delays caused due to issues unknown to you?
  • Are you aware of the criteria used in product checks?

Here is the decoding

If you nodded your head for 18 or more of these questions then you can work without using a sourcing agent as your risk isn’t high If you nodded your head to less than 12 to the above questions you should contact a sourcing company.

Sourcing directly from factory vs sourcing agent

Advantages of not using a sourcing agent:

If you directly contact the factory you will cut down on the cost of paying fees to a sourcing agent. It can be between 3 to 7 percent based on the quantity of the order.

Disadvantages of not using a sourcing agent:

It takes more time and effort to follow up directly with the factory You will have to bear all the risks alone if you work directly with a factory Factories need a higher quantity of products to be ordered at ones


If your cooperation employs professionals to take care of the supply chain/you have in depth knowledge and can spare 1 or 2 hours everyday for this job, you can work without a sourcing agent.

For Free Quote Contact Us at Indian Trade depot.

Sourcing plans used by sourcing agents

Sourcing plans used by sourcing agents

There are two secret ingredients to make the sourcing process more successful:

  1. Remove the unsuitable suppliers in the very beginning
  2. Stick to a simple process and be strict

Why you need to Sourcing plans used by sourcing agents?

Make a quick and easy filter that will disqualify unsuitable manufacturers.
Start doing Sourcing plans at the very beginning in order to save a lot of time and capital which is spent in meeting producers The proper filter provides you a list of tailored factories and works in 2 stages. The first stage helps you to identify the prospective vendors via online means example phone, online queries, etc The second stage guides you to select the factory and check its processes by being physically present. Based on your preferences it is better to let a sourcing agent handle this stage.

Build your candidate list

  • As soon as you know the type of factory that your company requires start looking for potential candidates.
  • Use references from colleagues, social media and trade show to find out about the best suppliers and their contact info. During this scratch out the factories that do not work according to your requirements.
  • Based on your chosen field you may find a varying number of vendors in the market. The more factories you connect with, the better. It is better to have backups before further negotiations.
  • If there aren’t enough vendors on your list, it is better to look for a sourcing company in india

Supplier introduction email form of Sourcing plans

Having chosen the first batch of vendors it is time to reach out to them and ask them to provide your company with the additional required information.

The best way to do so is to prepare a common self-explanatory form for Sourcing plans and send it to all the selected vendors.

The vendors might be hesitant to give out additional information while replying to an email from an unfamiliar sender. So, give them some time.

To prevent this, it is recommended that you send the first email with an introduction and information about your company and why you have sent them the above-mentioned form. Do not ask them to share confidential information. You can ask them about the total area of their set up or the number of employees present or ask them about the sales and their preferred markets.


The ideal first step would be to identify a low-cost price range if it was easy to get a good price from producers. If your company is losing money in a deal, there is no point in considering such a deal. Every individual looks for the best quality product for the lowest cost in the market. However, you can’t pay for low quality as it will make you lose money in the long run.

The next step would be to ask for quotations as the factories now recognize you. These quotations will help you to recognize the various price structures present. You should send them specifics of your products that are already available on public sites.

Phone interview

In today’s world of online communication, even the smallest factories can access foreign packages. The main objective of this call is to know the nature of the person you’re talking to. You should solve any queries that were raised by the form you sent and talk about topics properly.

Remember, this is a two-way street. It is not just you checking the factory, the factory is also checking you. You need to make the factory realize that your business will help the factory and why they should have you as their client while conducting the interview

Factory visit/audit

By now, a huge portion of the non-required factories should be discarded. Your list should have boiled down to a list of 3 to 10 factories that you think are worth visiting.

However, there is always a chance that you might not like the manufacturer and feel that you wasted your time. To prevent this, consider using a factory audit service. It has the ability of quickly comparing a factory’s whole processing, including the whole machinery and handling system, and thus review the factory for you.

What is an export agent and a broker?

There are two subdivisions for agents in the import/export field:

  • Traditional import/export agents: in the country where the production takes place, an export agent is found. For example, you may find a vendor in the U.K. and want to represent that seller in the overseas market as their export agent. Or you may prefer the job of an import agent in the country where the above-mentioned goods will be imported, in this case, you will represent the buyers, for example, you may be aware of a certain company in the UK and their demand for a particular kind of product. You would look for vendors in the foreign market and buy the required products as their import agent.
  • Brokers: a broker works independently and takes care of the buyers and the vendors together. Majorly brokers represent sellers but some brokers work on behalf of a buyer. He is different from an import and export agent as he doesn’t usually work on behalf of an organization. Instead, he carries out non-recurring deals. Take an example, there is a company in London that is shutting down its supply chain. In such a scenario a broker is told about the deal. As the product is going to be discontinued, this becomes a non-recurring deal. The sourcing agent contacts Mumbai electronics as a prospective buyer. This is how the broker connects the company in new york and Mumbai electronics and further gets a commission from the above deal.

Looking at the benefits and challenges of being an agent

One of the major benefits of working as a sourcing agent is that you do not require a great deal of money when you just begin your journey. As compared to being a distributor the initially required working capital is very less. On the other hand, when you work as an agent there is an added risk that your client will not contact you in the future and instead directly meet with the factory employee.
To prevent such a risk it is important to realize that the sourcing agent has to develop a professional relationship with the vendor and the buyer. They have to keep working to gain better and improved sales.

Representing clients and getting commissions

The commission an agent receives depends on factors like the quality and material of the product, the environment where you are trading, and the competitors available in your market.

Suppose you are an agent who connects foreign vendors with one another, would you obtain
a commission from both of them? No. Why?
As you are working on behalf of one of the above-mentioned parties. If it is the vendor you are working for, then you must obtain the best price possible for the product. However, if you are working for the buyer your job is to obtain the goods at the cheapest rate possible. That is why you should not obtain a commission from both parties.

Decide if you want to work for the vendor or the buyer and then give your best. The better the relationship you form with your client the higher are your chances that they will work with you in the future.

Do you have any other questions about sourcing agents/companies? If you want to find an Indian sourcing agent, you can Contact Us, we are one of the leading India sourcing agencies.

How to choose a sourcing company?

Tips for choosing the right sourcing company?


Choose a sourcing company with a great deal of experience and a good clientele record. Ensure that the company you are connecting with has a good record as it can reflect their quality of service and quality of deliverance.

A top sourcing agent will be able to help you with all levels of production and give good advice. Watch out for customer reviews as they can help you in recognizing the best sourcing agents.


  1. Choose a sourcing company who has an in-depth knowledge of the industry you want to work in and ensure that he has experience in sourcing products in that particular field.
  2. In India, different areas specialize in different products so it helps if your sourcing agent has the knowledge of where to gain a particular product from.
  3. A sourcing company should be able to come up with a compact process which helps you by saving your time and cutting down your production costs while maintaining the proper quality level.
  4. They should be able deliver all the products you demand while maintaining a good relation with the suppliers


Miscommunication can damage your business ties and relations in the long run. So, it is better to communicate with your sourcing agent and also keep an eye on his communication with others. There is a chance that if he communicates well with you, he has excellent communication with the concerned buyers and suppliers.


  1. If you connect with a professional sourcing agent, you will notice that they not only act as a connection between the supplier and buyer but also try their level best to give you an exceptional service to ensure customer satisfaction.
  2. The sourcing agent should be able to satisfy your needs and demands which makes them trustworthy.


  • A top sourcing company will ensure that you are updated about the happenings
  • A bad sourcing agent might hide the details of the procedure in order to gain the upper hand.
  • A sourcing agent is not supposed to only act as a middleman, they are supposed to join hands with you to help you obtain the best outcomes.
  • Being transparent reduces the risk of future conflicts and misunderstandings.


In order to protect your business, confirm that all the terms and conditions are written down in a contract and agreed to. Hire a lawyer if you want a professional opinion.
You must take care while transacting and carrying out payments to maintain security and privacy.


Different sourcing agents have different fee structures and costings so it is better to look around.

There is also a chance that you would prefer a certain sourcing agent for their pricing structure and not the cost.

Commission and Percentage of order

  • Commission based contracts are common and frequent.
  • Commissions range from 5 to 10 percent based on the frequency of orders and rates.
  • If you are placing high orders which have high demand like rice, or the value of the order is above $500000, the service charge is around 3 percent or less based on the order value.
  • If you have a large or small order based then a commission based fee structure works best.

Flat fee/ Fixed fee per order

  • This is the fee agreed upon before the commencement of the project.
  • You can directly contact your suppliers and have a business relation with understanding. They usually charge less than $100 for each product.
  • Some professional buyers prefer to employ a full time sourcing agent for tasks like finding suppliers and communicating with suppliers and buyers. They give out these positions for months or weeks.
  • However, with an already established relationship, it can be difficult to negotiate every time.

Hourly fees

  • This is the fees that are paid for an hour of service
  • It helps you to control the hours a sourcing agent works and this helps you to keep your cost in check. Small businesses can work accordingly so as to avoid huge bills.
  • The results can fluctuate and this makes room for bad agents.
  • Some bad agents may only work for 8 hours but claim that they worked for 15 hours and charge you for that since there is no way to figure out the exact hours they needed.


Essentially, the sourcing agents and sourcing companies are similar in their work objectives ( they serve as a link between the buyer and seller) so it all depends on your needs and conditions. Think carefully and make your decision.

Do you have any other questions about how to choose a sourcing company? If you want to find an Indian sourcing agent, you can contact us, we are one of the leading India sourcing agencies.

What is a sourcing agreement with a sourcing agent?

What is a sourcing agreement with a sourcing agent?

Agency agreement or sourcing agreement

Forming a trustworthy relationship with your sourcing agent is extremely important. It is recommended to contact a lawyer who can make a legally binding sourcing agreement so as to avoid miscommunication, complicated conflicts in the future. This will help the agent to know their tasks.


When forming a contract with a sourcing agency it is important to mention a definite or indefinite time period before termination. Laws in Europe and UK mention that there should be a minimum of 1 month for the first year twice of that for the next year and three months for the remaining year if you failed to comply with the contract, your agent is to be paid 1 year worth of salary. If the agent fails to respect the contract then you have the freedom to terminate his services.

Possible problems faced during sourcing? Sourcing pitfalls

There is a chance that the received products do not meet your requirements. You consult a lawyer to get back your money. However, your first option should be to negotiate. You should reach out to your supplier via email and try to conduct negotiations. There can be two outcomes. First, you receive some of your money back. Second, you consult a lawyer who finds out your chances of winning a case should you choose to fight a lawsuit against your vendor According to the deal written in sourcing agreement .

Chances are that your supplier is ready with their defense: You need to pay more if you want the best quality goods. This line is often used by suppliers and this gives them an advantage. There is a possibility that right from the beginning your supplier was not on the same page as you but you believed that you were in a strong communicating relationship.

Here are some methods to avoid such pitfalls:

  • Verify suppliers:
    It is important that you identify and connect only with reliable and trustworthy suppliers who are in for the long run. If you are looking for capabilities like metal stamping, die casting or injection molding, then the above point is extremely important for you.

You have to ensure that you are connecting with a factory and not a middle person. Next, ensure that your chosen manufacturer has the required expertise and capabilities for manufacturing the goods that you require. Include the following in your search: The name of the factory, where it is found, and the government sector under which it falls. Sourcing agents who deal with overseas trades and companies should make use of an English name so that it becomes easier to transfer money.

Know how to leap over the language barrier and cultural differences: When you need to trade with a foreign company, it is extremely important that you employ someone who knows the local rules, local language and is familiar with the culture of the country. In such a scenario, a sourcing agent would be the way to go as he supports your company from the beginning till the time your shipment is completed.

For eg. Vendors do not ask questions due to the fear of losing face. If the product quality is not what you require, the producer could state language miscommunication as the barrier and thus deceive you. In such a case a sourcing agent will be ready and help you out so that there are no such miscommunications. (Pro tip: When selecting suppliers lookout for suppliers who ask questions as there is a chance that they are clear about their working process and can thus avoid production issues. Another thing that happens is that suppliers hide the bad news, which creates an issue in the final stages. This again can be sorted out by hiring a sourcing agent who will keep a check on the factory and keep you in the loop.

Remember when you go low, they go low:

When you seek the cheapest price, there are always reverberations. You should conduct thorough market research which will let you know what the price floor is. When defining the price floor, it can be called a government/authority regulated price limit determining the cheapest price which can be paid while taking a product or service.

Manufacturers know the price floor that works in their market and for the type of product that you are looking to sell. Manufacturers who violate the determined price floor can be bad for your business. This is because they could be exploiting the required quality or use bad quality materials. There is also a chance that the owner is forcing the workers to work at very low vegas or under bad working conditions

Explicitly state how you want your product manufactured

Under the sourcing agreement you sign you should specify all the conditions regarding the quality that you need. One of the major risks that you face is that the received sample is exactly what you need but the received order is of bad quality. Just to be cautious, put it down in your contract that you would take the manufacturer based on the quality of products that he delivers. This will ensure that the vendor gives you the best quality products.
If you pay attention while forming this contract, it will be ensured that there are no price changes or additions when the manufacturing process is on the way. There are chances that it is not the manufacturer’s fault that the price increase has taken place in this case, it will be your responsibility.
Give a phone call to your supplier after sending him an important email to confirm that he has understood what you wanted to say. Employ one or two people to keep in contact with the supplier so that there is no confusion.

Conduct regular quality control inspections

Ensure that you conduct a thorough inspection of the factory that you are dealing with. Daily quality checks will help you catch the issue in the early stage of production. Quick changes can be made so as to prevent on-time delivery.
Ensure that your supplier conducts a thorough quality check before shipping the goods.

What to do if you receive bad quality products?

Think of what needs to be changed when you receive a shipment of goods that do not match your expectation.

  • Bad quality of raw materials
  • The final finishing is of bad quality
  • The products are not of good quality
  • The goods are misshapen or broken

Negotiating vs suing the suppliers

The two available options are litigation and arbitration. Consulting a lawyer takes time as well as money. There is also a chance of ruining your business relationship with your supplier over a small value mistake.

It is not easy to sue a business and it can disrupt your professional as well as personal affairs. Your case will not have a strong chance if you do not have these.

  • A written agreement that specifies the exact quality and quantity of materials/goods that you require.
  • A proof that you have paid the supplier and not a middle man.
  • There should be some valuable assets that your supplier owns and it should be mentioned in the contract.

Why sourcing agreement is important?

Not only this, but you also have to think of the way a jury would see this. We need to check if a thorough inspection was conducted by the supplier. If you file a lawsuit in a US court there will be no outcome as foreign courts don’t enforce judgments in other countries.

There is a high chance that if the company which you are dealing with, is well known, they will not like to be dragged to court as it can ruin their image. That is why people prefer to deal with these issues without consulting a lawyer. While making the contract, ensure that there is an arbitration clause included in it, so that you can work out these issues financially. Supposing that the contract wasn’t signed, you can make use of the arbitration to access other documents like emails as long as this dispute solving method is mentioned.

Another way to deal with this if you don’t want to participate in a lawsuit, is to reduce your loss and focus on growing. If you want to warn future buyers about using this supplier, you can leave a negative rating on social media. There is also a way to blacklist the company on a site called This is a free website that does not have any reason to support a supplier, unlike other directories that take a commission from producers.

For Free Quote Contact Us at Indian Trade depot.