The structural difference
A trading company usually buys and resells goods in its own name. A sourcing agent represents the buyer in finding and coordinating suppliers. Real businesses can combine both roles, so contracts and invoices matter more than labels.
Visibility and supplier access
Agents commonly expose original suppliers and quotes; traders may protect their supply chain and quote one bundled product price. Decide how important direct factory continuity is to your business.
Who carries responsibility
A trader may act as the contractual seller and consolidate product liability in one commercial relationship. An agent coordinates work while purchase contracts may remain between you and factories.
Quality-control conflicts
When margin depends on supplier cost, quality decisions can conflict with the seller’s commercial incentive. Independent inspections and objective release criteria reduce that risk in either model.
When each model fits
Trading companies can fit low-volume mixed orders and buyers who value a single seller. Agents fit buyers seeking transparency, direct supplier development and a controllable long-term supply chain.
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