Frequently Asked Questions

Costs vary by service model. Common pricing structures include: percentage of order value (typically 3-10%), flat fee per project, or hourly consulting rates. At Directo Sourcing, we offer free initial supplier matching — we introduce you to pre-vetted factories at no cost. Fees only apply if you need deeper services like on-site factory verification or ongoing procurement advisory.

A sourcing agent works for you — they identify the best factory for your needs and charge a service fee. You deal directly with the factory and know exactly what the factory price is. A trading company buys from factories and resells to you at a markup. You may never know the original factory or price. Sourcing agents offer transparency and lower costs; trading companies offer convenience and consolidated logistics. If you value long-term supply chain control, a sourcing agent is the better choice.

Verification should be multi-layered: (1) Check the business license on China's National Enterprise Credit Information Publicity System. (2) Request export records — a legitimate factory should be able to show past export documents. (3) Ask for client references — and actually contact them. (4) Conduct a factory audit — either visit in person, send a third-party inspector, or use a sourcing agent's verification service. (5) Verify certifications — ISO, CE, BSCI, etc. — by checking with the issuing body directly, not just accepting a PDF. (6) Start small — place a trial order before committing to large volumes.

Yes, working with a reputable sourcing agent is one of the safest ways to source from China — it reduces your risk. A good agent verifies suppliers before introducing them, inspects production quality, and helps negotiate fair contract terms. The key is choosing the right agent: check their track record, ask for client references, and ensure they are transparent about their fees and methods. A trustworthy agent will never hide the factory's identity from you.

Key precautions: (1) Never send payment to a personal bank account — always use the company's registered account. (2) Use secure payment methods — Letter of Credit (L/C) for large orders, or 30/70 terms (30% deposit, 70% after inspection) rather than 100% upfront. (3) Verify the factory exists — check the address on Google Maps, request a live video call from the production floor. (4) Beware of prices that are significantly below market — if it seems too good to be true, it usually is. (5) Use a sourcing agent or third-party inspection service for your first orders.

MOQ (Minimum Order Quantity) is the smallest quantity a factory will produce per order. It varies widely by industry: apparel MOQs might be 100-500 pieces per style; electronics might be 500-1000 units; furniture might be 10-50 pieces; custom machinery might have MOQ of 1. MOQ exists because factories need to cover setup costs. If the MOQ is too high, ask if you can negotiate: offer a higher per-unit price for a smaller run, or combine multiple products into one order. Some factories are flexible, especially during off-peak seasons.

Incoterms (International Commercial Terms) define who is responsible for shipping, insurance, and customs clearance at each stage. For China imports, the most common are: FOB (Free on Board) — the supplier delivers goods to the port, you arrange shipping from there; this gives you control over freight costs. CIF (Cost, Insurance, Freight) — the supplier arranges shipping to your destination port; simpler but you pay their freight markup. DDP (Delivered Duty Paid) — the supplier handles everything door-to-door including import duties; most convenient but most expensive. For beginners, FOB is usually the best balance of cost and control.

With Directo Sourcing, initial supplier matches are typically delivered within 48 hours of receiving your requirements. The full sourcing cycle — from requirement definition to signed contract — generally takes 1 to 4 weeks, depending on product complexity, the number of factories being evaluated, and your own decision-making timeline. Sample production and shipping add additional time, typically 2-6 weeks.