How Much China Sourcing Agent Commission To Pay?

POSTED ON June 19, 2021

There are thousands of sourcing agents in China that help procure a range of products for customers across the world. If you are also looking to source goods from China and planning to hire services of a sourcing agent, you may wonder how much it costs. then we want to talk about the China Sourcing Agent Commission for customer information.

While many Chinese sourcing agents will make super low-cost offers, chances are that it will translate into poor services and poor-quality products. There is no standard fee structure followed and each sourcing agent charges their clients in different ways. The general rule of thumb that one must follow when choosing a sourcing China is that they should be transparent. You should steer clear of sourcing agents who do not clearly state their fees and tell you what all services they will offer.

In this post, we will talk about how pricing generally works in the global sourcing industry in China and how Sourcing Captain in particular charges their clients.

Fixed or Flat Fee

This is probably the most common pricing method used by sourcing agents in China. A lot of sourcing agents charge a fixed fee for a specific project or product, for a specific time period. In the fixed fee set up, the sourcing agents just connect their client with the supplier. It is up to the supplier to take it on from there and build relationship with them.

It is needless to mention that fixed fee is the cheapest way to get a sourcing agent in China. However, like all things cheap, this arrangement too comes with its flaws. When you find an agent too cheap, there is a good chance that he will be under qualified and inexperienced. You will likely end up with a not-so-good supplier and if that is not enough you will be entirely responsible for dealing with him when the China Sourcing Agent Commission applies.

Another type of arrangement that works is a fixed monthly fee. So, you pay a fixed monthly fee to the sourcing agent for the duration of your project. They will oversee the whole projects and communicate with the supplier till the time you receive the goods.  This would cost you a little more, but you will be able hire more experienced agents and you will get better services. Percentage commission

A lot of sourcing agents in China charge a percentage commission on the total order value. In fact, Sourcing Captain also charges a percentage commission. We will talk about our fee structure in the coming sections.

Again, there are no standards and different agents charge different fees based on their experience, expertise and order value. Commonly, the fee ranges between 5%-10%.

Profit from the price difference

There are sourcing agents who help find suppliers that offer highly competitive prices for the products. They then make a profit off the price difference. The whole arrangement hinges on the sourcing agent’s ability to find you the lowest price in the market. If the buyer is able to find lower prices, they don’t have to buy through that agent. It is highly advisable that you don’t fall for low prices only. You must make sure that the product quality is not compromised and the whole process is smooth and efficient.

Sourcing Captain fee structure

Sourcing Captain is proud of its transparent pricing policy. We offer one-on-one professional sourcing consultation, free supplier sourcing, free warehousing to store goods until delivery, free supply chain management, free shipment coordination, free inspection service, free order tracking and updates, free project quote and free sample for approval. Once the order is placed, we charge a percentage commission based on the order value.

For orders less than $1000, we charge 10% commission, $1000-$5000 is 8%, $5001-$10000 is 7%, $10000-$30000 is 6% and over $30000 we charge only 5%. So, there are no hidden fees or kickbacks, and we are very honest about what we charge.

Key takeaways

Some sourcing agents in China charge a flat fee, others charge a percentage commission and still others make money off the price difference. The most important thing to keep in mind is that fees should not be the primary criteria to choose a sourcing agent for your business. You should rather see how transparent their pricing policy is and what services you are getting in that fee.

You should look for a sourcing agent who offers efficient services and brings a lot of experience and expertise to the table. They would offer a more seamless and hassle-free experience than someone who offers the bare minimum service and poor-quality products for a low fee. Better still, look for someone who is located within the industrial area so that they can easily communicate with the supplier, and go for inspections, supervision and other activities.

Send a query so that our team can help you with your sourcing needs.