What is a sourcing agent？
A sourcing agent is a person or company that helps buyers find suppliers and source products as needed—like a real estate agent, they connect you with resources, negotiate deals, and handle the details to simplify the process and reduce risks.
Why you need a sourcing agent？
Purchasing products from China may seem simple, but it’s actually complex and fraught with unexpected issues, from sampling to finished product. This is where a sourcing agent can step in, saving you time and hassle, providing a more cost-effective and efficient experience. They can also provide quality control and deliver the products to your location.
What does a sourcing agent do?
One-stop sourcing services
Middle and large sourcing companies with experienced teams manage every step, including dealing with Chinese suppliers, price negotiation, sampling, quality inspections, logistics, customization, and new product development.
Single or partial sourcing service
Private agents you find on Fiverr or Upwork, as well as small sourcing companies with fewer than 10 people through Google search, typically offer single or some sourcing work. Common services include general translation, supplier information packages, product photos, sample consolidation, supplier audits, production tracking, consultation services, etc.
What is the Minimum Order Quantity?
When testing new products and markets, e-commerce sellers usually go for small batch customization, like 300-500 units. Before approaching us, most of them spent time browsing on Alibaba but struggled to find suppliers who offered reasonable prices, met their expectations, and were highly cooperative. So they turned to us.
- We work with both large and small factories and have years of experience in customization and new product development. So we can handle small orders well.
- We’re willing to handle small batch orders with budgets of just a few thousand dollars, growing together with our clients.
That’s why over 20 million-dollar e-commerce sellers have launched their projects with us.
What about China sourcing agent fees?
Sourcing agents typically charge either a fixed fee per project/time or a commission on the order amount.
Flat charges
Small sourcing companies and private agents in China charge a fixed fee per project or period (hour/week/month). Suitable for short-term or one-time service needs.
Some experienced buyers prefer to hire a private full-time sourcing agent for weeks or months, to do some simple sourcing work like finding suppliers, translating, and communicating with suppliers.
Small sourcing companies are usually run by individuals with foreign trade experience, focusing on categories they know and charging a fixed fee for single services. For example, supplier sourcing, quality inspection, or logistics arrangements. It’s a good fit if your sourcing needs happen to align with their area of expertise.
Commissions
Commissions are another common pricing model among medium and large sourcing agents, similar to real estate agents taking a small percentage of the property price as a commission.
Typically, the sourcing commission rate is 3-8% of the order amount.
This is reasonable for daily consumer products. Many sourcing companies attract new clients with very low commission rates or even offer free trial orders.
Always remember, “No business is charity.” They’ll make up the difference elsewhere, like higher product prices, inflated shipping costs, poor QC, and lack of attention to your order leading to a range of risks & headaches. You’ll end up worrying more than if you’d sourced suppliers yourself.
If you’re sourcing high-demand, competitive products like raw materials, or your order is over $100,000, the service fee might be around 3% of the order value or even less. This is reasonable.
How can I find out shipping cost?
Determining the shipping costs is indeed an essential step in the procurement process. At BaiChen, we understand the importance of having a clear overview of all costs involved, including shipping, to help in your budget planning.
When you engage our services, you can always request a shipping estimate. We calculate these estimates based on a variety of factors, including the size and weight of your order, the nature of the goods, the packaging necessary, and the desired destination. Please note that these are just estimates, and actual costs may vary.
Recognizing that every client’s needs are unique, we work closely with our logistics partners to obtain the most competitive shipping rates for your order. We always aim to provide cost-effective logistics solution without compromising on the reliability or timing of the delivery.
In addition to our estimates, you can also make use of online tools that help in calculating shipping costs. For example, Freightos offers a helpful shipping calculator that can provide you with an instant estimate of your shipping costs. This tool can be beneficial in giving you an approximate idea of the shipping costs involved, especially during the early planning stages of your procurement process.
At BaiChen, we strive to provide as much transparency and support in the procurement process as possible, including helping you understand the shipping costs. By keeping an open line of communication, we enable you to stay informed about the different cost components, including shipping, throughout the procurement journey.