It is quite a common question: What’s your commission when you want to find a sourcing agent or 1688 agent to help you buy from China? And what’s your Exchange rate?

China Sourcing agents charge 3-10% of the total order amount. The commission depends on the amount of your order. The larger the order, the lower the commission. For Exchange rates, find some that really reach real-time exchange. It is quite important.

And how do the sourcing agents charge for their services?

Is it a flat fee, commission, or other? Let’s make it clear what their sourcing agent fee is and what their payment price structure is.

Common fee structures

3-10%Commission(Get one Free Quotation), 90% of China sourcing agents will use this model

• The benefits
  • You can get one Free quotation without the need to pay the initial fee before you make the payment.
  • You can compare with different agents to get the most competitive price.
• The downsides
  • If you focus only on the lowest price, the quality will not be that good since 1688 has the same pictures, but they can have different materials, sizes, and prices.
  • If you only want to buy under a small amount but with a different SKU, some sourcing agents need 500 USD per SKU, but Dropshipme sourcing does not need that MOQ for the SKU so that you can test.
  • They will not be that transparent, so they may add profit to products. So it would be better if you could send the Alibaba and 1688 links.

• • Fixed price per project or product

    • When you have a simple product or project and just want to save time, you can use this fixed price. We recommend using Upwork or forever to search for a sourcing agent or buying agent and only select one with a China location, not another country. Trust me, China agents are best when you want to buy from China.
    • The benefits
      • Prices are fixed, simple, and transparent.
      • Save time
    • The downsides
      • Not friendly for extended terms or big orders,
      • They may also add their profit even if you have paid the fixed price since you don’t know the exact price until they negotiate with the supplier.
      • It’s not an all-in-one service; they just offer you a price. When arranging shipment or inspection, they will charge a fixed fee, so before choosing them, ask for all the details of their fee.

• • Charge by hourly or weekly Monthly

    • Like a fixed fee, you can also pay the sourcing agent hourly or weekly on Upwork and other freelancer platforms. For simple tasks, if you just want to get a quotation or sample, you can use Upwork. However, for complex tasks or big orders, it’s really hard to say how many orders they can take even if you have one screenshot.

    • Intail fee + commission

      • Some overseas agents will use this method since too many buyers just use the agent to get a free quotation and compare prices but do not buy from them. So some agents will charge an entail fee when you need to get one quotation to review first. Most Chinese companies do not charge the entail fee. If they do, you can find dropship.co. They have a small moq for 500 USD and no initial fee.

How do sourcing agents operate under the commission rate model, or what’s the process?

• • • 1. Send the detailed order requirement, with all the details you need, including Product image, product link, product model and specification, and quantity; usually, it is one Excel sheet or Google sheet. You can ask Dropshipme.co to get one template
    • 2. We build one sourcing team for you, adding our agent, warehouse team, inspection, and agent manager. We are not one agent to service you; we are one team to service you. When you have any questions or comments, you can reach the manager to get the best price and service.
    • 3. Offer the detail items cost and shipping cost
    • 4. Make payment
    • 5. We order items from Alibaba or 1688
    • 6. Items are arranged at our warehouse; we inspect and take pictures for you
    • 7. Arrange the shipment and send the tracking code

How to choose the best sourcing agent with a commission rate model?

• • That does not mean we should find the lowest commission—one is good. We also need to consider the best factors before we choose them.
  • Transparent price
    • Ask directly about the commission and the rate, choose the reasonable one, and take the one closest to the Real-time exchange rate. It is important. Because it is also a big factor in the percentage commission you pay.

• • Faster reply
    • Whether you are looking for a sourcing agent or a supplier, you should always look for a professional and faster reply. A faster reply always means a reliable one.
  • Who will build one team for you?
    • Find the sourcing company that will build one team for you. Since this way, it is one company, and teamwork is a big factor. Some sellers are unprofessional or reply slowly, but team service will confirm that you will get good service and a good price.
  • Good shipping cost
    • This is not that important. You can also use your shipping agent to find one that does not significantly increase shipping costs. Finding an all-in-one sourcing agent will help you save time and money.

How to Calculate Sourcing Agent Commission Percentage Service Fee?

The total amount you pay to the purchasing agent = order amount * commission percentage + shipping costs

• • • Air and sea freight charges are usually not included in the order amount, and your payment amount is calculated as follows.
    • Make one sheet to calculate it first: Items cost+ shipping cost+5% commission.
    • The first time, let’s pay with an Alibaba trade assurance order first.

Some agents claim to offer 0% commission or 1% commission, but this does not mean that you, as a buyer, will end up paying less. What you get is what you pay. Free commission or under 2% commission may be fraud.

To summarize, the commission model is the most common model. Finding a reliable sourcing agent will be very helpful for your company. Actually, the sourcing agent or sourcing service is also an outsourced service.

Sometimes, the outsourced sector has the advantage of being more flexible and less costly. Suppose you are setting up a purchasing department. In that case, whether in China or overseas, salaries, social security, and office space will be a significant expense. Outsourcing the procurement process is possible, especially if you are sourcing from China. That’s why the commission-only model has become the most popular and is the market choice for end clients and sourcing agents.

In most cases, finding a qualified outsourced sourcing agent saves labor and salary costs compared to an in-house sourcing team. The Chinese sourcing agent will also optimize your pricing and supply chain very well. Moreover, there is no internal corruption in China’s outsourcing agencies.

Finally, if you are working with a sourcing agent for the first time, try to use Alibaba’s trade assurance order to close the deal.

• Dropshipme Sourcing has 9 years of sourcing agent experience. We have helped 4000+ happy customers import from China. If you have any questions about importing from China, contact us. We are happy to answer your questions.