For UK businesses looking to import from China, choosing the right type of agent can make the difference between profitable operations and costly mistakes. With China continuing to dominate global manufacturingaccounting for around 30% of global manufacturing output—understanding the nuances between sourcing agents and dropshipping agents has never been more critical.
Clear explanations of sourcing vs dropshipping agents, their roles, and core functions
Detailed breakdown of fees, commissions, and total cost implications for UK businesses
Strategic framework for choosing the right agent type based on your business model
Expert tips and strategies for maximizing success with either agent type
Strategic partner for bulk importing
A sourcing agent is a professional intermediary who helps businesses identify, evaluate, and establish relationships with Chinese manufacturers for bulk product procurement.
5-10% of total order value
Fulfillment Partner for E-commerce
A dropshipping agent is a fulfillment specialist who handles order processing, inventory management, and direct-to-customer shipping for e-commerce businesses.
£0.80-£3.00 per order fulfillment
Plus storage and handling fees
| Aspect | Sourcing Agent | Dropshipping Agent |
|---|---|---|
| Primary Focus | Bulk procurement & supplier relationships | Individual order fulfillment |
| Order Volume | Large quantities (100+ units) | Single items or small quantities |
| Inventory Management | Client manages inventory | Agent manages inventory |
| Shipping Destination | To client's warehouse/location | Direct to end customers |
| Quality Control | Comprehensive QC & inspections | Basic quality checks |
| Relationship Type | Long-term strategic partnership | Operational service provider |
Minimum orders typically 100-1000+ units
Focus on MOQ negotiations
Single item orders accepted
No minimum order requirements
High upfront investment
£5,000-£50,000+ typical
Low/no upfront investment
Pay per order fulfilled
Bulk shipping to your location
30-45 day sea freight typical
Direct-to-customer shipping
7-15 day express delivery
Comprehensive QC processes
Factory audits, pre-shipment inspections
Basic quality checks
Limited inspection capabilities
Example: £10,000 order = £500-1,000 agent commission
Example: 100 orders/month = £80-300 fulfillment fees
| Cost Component | Sourcing Agent | Dropshipping Agent | UK Business Impact |
|---|---|---|---|
| Agent Commission/Fees | 5-10% of order value | £0.80-£3.00 per order | Significant difference at scale |
| Quality Control | £200-500 per inspection | Included in per-order fee | Higher upfront, better quality |
| Shipping Costs | £2-5 per kg (sea freight) | £8-15 per kg (express) | Bulk shipping more economical |
| Warehousing (UK) | £2-8 per pallet/month | Not required | Additional overhead for sourcing |
| Customs & Duties | Paid once per shipment | Handled per package | Bulk processing more efficient |
| Insurance | 0.3-0.5% of shipment value | Often included in fees | Separate consideration for bulk |
Rule-of-thumb: Becomes economical for orders above £5,000 with established sales channels
Break-even: Ideal for testing markets and e-commerce businesses with low inventory risk
Existing retail stores, established customer base, or proven market demand
Bulk orders that justify MOQ negotiations and shipping costs
Products requiring strict quality control, certifications, or brand protection
Building sustainable import operations with consistent supplier relationships
Private label products, specific modifications, or unique specifications
Validating demand before committing to large inventory investments
Starting with minimal upfront investment and cash flow constraints
Online-only sales with direct-to-consumer shipping requirements
Testing multiple products without inventory risk for each SKU
Need to start selling quickly without waiting for bulk shipments
Many successful UK businesses start with dropshipping agents to test markets, then transition to sourcing agents as they scale. Here's the strategic pathway:
Use dropshipping agent to validate products and demand
Monitor sales volume and identify high-performing products
Calculate bulk order economics and identify sourcing agent
Move to bulk sourcing for proven products, maintain dropshipping for testing new items
| Criteria | Sourcing Agent | Dropshipping Agent |
|---|---|---|
| Experience / Fulfilment |
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| Quality Control / Shipping & Logistics |
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| Communication & Location / Product Sourcing |
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| Financial Structure / Technology & Support |
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The cheapest agent often delivers the poorest results. Focus on value, not just cost.
Expecting Western service levels at Chinese prices. Quality agents cost more but deliver better results.
Not properly vetting agents before starting, leading to problems later.
Irregular contact, unclear instructions, and not following up on commitments.
Trying to save money by avoiding inspections, leading to expensive problems later.
Not accounting for Chinese holidays, shipping delays, or seasonal variations.
Use this final framework to determine which agent type best fits your current business situation and growth objectives.
Your choice of agent type should align with your business model, growth stage, and long-term objectives. It's not just about cost—it's about building the foundation for sustainable import operations.
Many successful UK businesses start with dropshipping agents for market validation, then move on to sourcing agents as volumes increase. Plan this transition from day one.
The time invested in properly vetting agents upfront will save you significantly more time, money, and stress later. Never rush this process.
Epic Sourcing specializes in helping UK businesses navigate the complexities of importing from China. Whether you need a strategic sourcing partner or dropshipping support, our team has the expertise to ensure your success.
Discuss your specific needs with our China import experts
Plan your import strategy for sustainable long-term growth
Join 500+ UK businesses successfully importing from China with Epic Sourcing
