Searching "sourcing agent India" and "exporter India" returns the same kinds of websites. The businesses behind them are not the same, and the difference decides who answers when a container is short or off-grade.
What are the three types?
A manufacturer-exporter owns the mill or plant and exports its own production. A merchant exporter, also called an export trading house, buys from several manufacturers and exports under its own invoice, its own Importer-Exporter Code and its own shipping bill. A sourcing agent finds suppliers for you and earns a commission, but never owns the goods: the sale is between you and the factory.
Where does Darsavio sit?
We are a merchant exporter. We are an exporter and trader, not a manufacturer. We source from partner mills and processors, check the lot before it is packed, and invoice and ship under our own IEC. Our registrations are on the certifications page, and you can verify them the way we describe in how to verify an Indian exporter.
Who is liable if the quality is wrong?
With a merchant exporter, the claim is against the exporter that invoiced you, and you have one party to deal with in India. With a sourcing agent, the claim is against the factory, and enforcing it from abroad is your job. A manufacturer-exporter answers for its own lot. In every case, get the claims clause in writing before shipment.
How does the money flow?
With a merchant exporter you pay one invoice, by L/C or TT, and the exporter pays the mills. With a sourcing agent you usually pay the factory directly and the agent's commission separately, so the payment-security question (L/C or advance) is between you and a factory you may have met only through the agent. The structures are compared in LC vs TT for a first order.
Which is cheapest?
A manufacturer selling direct has the lowest ex-factory price, but it usually wants a full-container minimum and puts the audit and the risk on you. A merchant exporter aggregates, so it can fill mixed containers and several categories on one invoice. An agent adds a commission to the factory price. "Cheapest" depends on how much risk and audit work you are willing to carry.
When should I choose each one?
Choose a manufacturer when you buy a single commodity in full containers and can audit the plant. Choose a merchant exporter when you want mixed containers, several categories or one counterparty for documents and claims. Choose a sourcing agent when you are building a new supplier base and need someone on the ground to find and audit factories for you, and you are prepared to manage the contract yourself.
How do I check any of them?
The same five public records apply whichever type you pick: the IEC, the GSTIN, the CIN, the D-U-N-S number and the relevant trade registration. For a first order add an independent inspection and a payment structure that does not depend on trust alone. Both are covered in the links below.
If you are comparing a merchant exporter with an agent for a first order, send us the product and volume and we will tell you plainly whether we are the right fit.
— Nitik · Darsavio EXIM