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REPORT STATUS: VERIFIED
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DATE: 01.15.2026
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CLASSIFICATION: PUBLIC

How to Evaluate a Sourcing Agent: The Veteran's Checklist

#sourcing#due-diligence#scaling#problem-solution#veterans
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TL;DR: Choosing the wrong sourcing agent costs more than choosing none at all. The key evaluation criteria aren't price or promises — they're supply continuity track record, communication responsiveness, and transparency about capabilities. Red flags include agents who promise everything, won't share references, or can't explain their manufacturer relationships. Good agents set realistic expectations, have verifiable track records, and are upfront about what they can and can't do. This checklist covers the 12 questions every veteran dropshipper should ask before committing.

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The Stakes Are Higher Than You Think

Switching to a sourcing agent is a commitment. You're trusting them with:

  • Your winning products
  • Your customer experience
  • Your scaling potential
  • Your business reputation

Choose wrong, and you're worse off than staying on AliExpress. Choose right, and you unlock sustainable scaling.

This guide helps you choose right.

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The Evaluation Framework

Most dropshippers evaluate sourcing agents on:

  • Price per order
  • Quoted shipping times
  • Website polish

These are the wrong criteria.

What actually matters:

| Criteria | Why It Matters | How to Verify | |----------|----------------|---------------| | Supply continuity track record | Can they keep products in stock when demand surges? | Ask for references, case studies | | Communication responsiveness | How fast do they respond when problems arise? | Test during sales process | | Manufacturing relationships | Do they have direct factory relationships or just resell? | Ask specific questions about suppliers | | Transparency | Do they explain limitations or just say "yes" to everything? | Look for nuanced answers | | Operational capability | Can they actually do what they claim? | Start with test order |

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The 12 Questions to Ask

Supply Chain Questions

1. "How do you handle demand surges? If I scale from 50 to 200 orders/day, what happens?"

Good answer: Specific process — they talk to manufacturers early, reserve capacity, have backup suppliers.

Red flag: Vague reassurance — "Don't worry, we handle it."


2. "Tell me about a time when a product went out of stock. What happened?"

Good answer: Honest story with lessons learned and process improvements.

Red flag: "That doesn't happen with us." (It happens to everyone.)


3. "Do you work directly with manufacturers or through intermediaries?"

Good answer: Clear explanation of their supplier relationships, which products are direct vs. sourced.

Red flag: Evasive or unclear answer.


4. "What's your process when my supplier can't meet demand?"

Good answer: Defined escalation process — backup suppliers, alternative sourcing, customer communication.

Red flag: No process, just promises.

Communication Questions

5. "What's your average response time for urgent issues?"

Good answer: Specific timeframe with context — "Within 4 hours during business hours, next morning for overnight."

Red flag: "We respond immediately" with no specifics.


6. "Who will be my main point of contact? Will that change?"

Good answer: Named contact with backup, clear handoff process.

Red flag: "You'll work with our team" (no accountability).


7. "How do I reach you if there's an emergency on a weekend?"

Good answer: Defined emergency process, even if limited.

Red flag: "Email us and we'll get back to you."

Capability Questions

8. "What shipping lanes are you strongest in? Where are you weaker?"

Good answer: Honest assessment — "We're excellent for US/EU, still building out Latin America."

Red flag: "We ship everywhere with no issues."


9. "What's your actual success rate for [specific destination]?"

Good answer: Specific number with context — "97-98% to the US, 95% to Brazil due to customs complexity."

Red flag: "Very high" or "99%" for every destination.


10. "What product categories do you have experience with? Any you won't handle?"

Good answer: Clear strengths and exclusions — "Strong in home goods and pet supplies. We don't do batteries or cosmetics."

Red flag: "We do everything."

Business Questions

11. "Can you provide references from sellers at my volume level?"

Good answer: Yes, with appropriate privacy caveats — "I can connect you with two clients doing similar volume."

Red flag: "Our clients prefer privacy" (no references available).


12. "What happens if the relationship doesn't work out?"

Good answer: Clear exit process, reasonable terms.

Red flag: Long lock-in periods, unclear transition process.

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Red Flags to Watch For

The "Yes to Everything" Agent

If an agent never says "no" or "we're not the best for that," they're either lying or don't know their limitations. Good partners set accurate expectations.

No References or Case Studies

Any legitimate agent has satisfied clients. If they can't provide a single reference, that's a major warning sign.

Unrealistic Pricing

If pricing is dramatically lower than competitors, question how. Sustainable businesses have sustainable pricing. Race-to-bottom pricing often means cut corners.

Vague Process Descriptions

Ask how they handle specific scenarios. If every answer is vague reassurance instead of concrete process, they're either new or hiding limitations.

Pressure to Commit Quickly

Good agents want the right fit, not just any deal. High-pressure sales tactics suggest they prioritize volume over relationship quality.

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Green Flags to Look For

Specific, Nuanced Answers

"We're great at X, decent at Y, and we don't recommend Z" shows self-awareness and honesty.

Documented Processes

Written SOPs, clear escalation paths, defined communication protocols — these indicate operational maturity.

Reasonable Response Times During Sales

If they're slow to respond when trying to win your business, expect worse after you've committed.

Willingness to Start Small

"Let's do a test batch before full commitment" shows confidence in their service and respect for your risk.

Clear Limitations

"Here's what we can't do well" is more valuable than false promises.

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The Test Order

Before full commitment, run a test:

  1. Send 10-20 orders to real customers
  2. Track everything — processing time, shipping accuracy, delivery success
  3. Test communication — ask questions, report a (real or simulated) issue
  4. Evaluate experience — not just outcome, but process quality

A test order reveals more than any sales conversation.

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Making the Decision

After evaluation, you should be able to answer:

  • Do they have the capability for my specific needs?
  • Do they communicate in a way that works for me?
  • Are they honest about limitations?
  • Do their references check out?
  • Did the test order perform as promised?

If yes to all five, you've found a good partner.

If no to any, keep looking or address the concern directly before committing.


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Frequently Asked Questions

How many sourcing agents should I evaluate?

Three is usually sufficient. More than that leads to decision paralysis. Less than that doesn't give you comparison points. Evaluate three seriously, including test orders from your top two.

What's a reasonable test order size?

10-20 orders gives you enough data to evaluate without massive commitment. Make sure it includes some complexity — different destinations, different products if possible.

How long should I evaluate before committing?

Complete the test order cycle (usually 2-3 weeks for delivery), evaluate results, then decide. Don't rush, but don't overthink either. The goal is informed decision, not perfect information.

Should I tell agents I'm evaluating competitors?

Yes. Honest agents appreciate transparency and often perform better knowing they're being compared. Agents who react poorly to competition are showing you how they'll handle pressure later.

What if an agent is great on some criteria but weak on others?

Prioritize based on your needs. If supply continuity is your main concern, weight that heavily. If communication responsiveness matters most, prioritize that. No partner is perfect — choose the best fit for your specific situation.

Authored by Just DS Logistics Ops
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