Advantage Sourcing is your local link to international manufacturing and product procurement

Frequently Asked Questions | FAQs

  • As with any area where you don’t possess direct knowledge, expertise or practical experience, it is always better to seek professional advice. A good agent will often save you more than they cost.  In Asia there are risks that don’t exist with sourcing in Australia. Advantage Sourcing’s expert advice is backed by many years of on the ground negotiations which ultimately reduce the risk for you as the client.

  • An agent cannot eliminate all risks in the sourcing process; however they effectively act as your eyes on the ground.  If during the process of quality assurance your agent identifies a problem with a job being produced in China, they can then stop production until the issue is resolved or corrected. As an agent, Advantage Sourcing acts to eliminate major problems by liaising with the factory via English speaking staff on the ground.

  • FOB is the standard abbreviation for ‘Free on Board’. The factory will put the goods on the ship however you as the client remain responsible for paying for any shipping duties and taxes as well as insurance for the goods when they arrive in Australia.

  • CIF is the abbreviation for ‘Container Insurance and Freight’. The factory covers the cost of sea freight insurance whilst the goods are on the crates. As the client, you are then required to pay duties, taxes, port charges and local delivery once the goods arrive.

  • FIS is the abbreviation for ‘Free into Store’. In this case, the factory pays for the goods to be delivered right to your door. There are then no other additional costs payable.

    There are advantages to all three arrangements.

    Some clients prefer to know the total up-front cost. FOB in fact offers the best deal with the least amount of factory margin. There is no significant difference in the cost as there is less chance for things to go wrong and this option normally equates to the best price for customers. Margins are increased with the other two options to cover the potential risk for something to go wrong.

  • Advantage Sourcing Services has a shipping representative working specifically with all its clients. The agent’s role is to arrange all components of the shipping process and to set up payment to the recommended local shipping agent.

    Advantage Sourcing’s experienced team is more than happy to answer any questions or enquiries you may have.

    Please contact us directly on +61 414 832 494

    Or email


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Advantage Sourcing Services 2010