Sourcing Agent Markup — What 15-30% Really Costs
Sourcing agents in Thailand typically mark up supplier quotes 15-30%. That number sounds abstract until you run it on a real order.
The math on a $50,000 order
Direct supplier quote: $50,000. Through a sourcing agent at 20% markup: $60,000. Through a sourcing agent at 30% markup: $65,000.
Annual reorder × 4: $40,000-60,000 in lost margin per year per supplier.
When the agent earns it
Three real scenarios where 20-30% is fair:
- Language friction: you don't have a Thai-speaking sourcing team and the supplier's English is patchy. Agent translates spec, negotiates, handles QC.
- Multi-supplier orchestration: a project bundles 5+ vendors and someone has to coordinate timelines + integration.
- Physical QC presence: factory visits aren't feasible from your country and the agent has on-the-ground inspectors.
When you're overpaying
- Single-supplier simple SKU
- Repeat orders with proven vendors
- Supplier has an English website with responsive sales (most Tier 1 OEM, large industrial-estate tenants do)
- You can travel to Thailand twice a year for QC
The fix
Use a directory like Thai Supply Hub to get supplier phone + website directly. Send your first RFQ in English. Pay agents only when their value-add is real — not as a default tax.
See our sourcing guide for the 5-step process.
Where we stand, since we are one of the options
We also do sourcing work, so read the above knowing that. Our arrangement: the factory pays us a success fee when an order closes, and buyers pay us nothing. We publish every factory's phone number and website anyway, so the direct route stays open and free — that is the point of the directory.
A success fee can still show up inside a quoted price. That is true of any intermediary, including us, which is why the three tests above are the right ones to apply to us too. Single SKU, proven vendor, English-speaking supplier? Call them yourself. See our terms for the full arrangement.