Let’s talk about the elephant in the room: Sourcing Fees.
If you are looking for an agent in Yiwu and someone quotes you a 1% or 0% commission, run. Fast.
As a veteran who set up my office here in 1999, I can tell you the math doesn’t work. The average operating cost for a legitimate export company in China is at least 5%. If they charge you 1%, they aren’t working for you—they are working for the booths.
Here’s how the “1% Scam” actually works:
- The Hidden Markup: The agent tells the booth owner to add 5-10% to the unit price. You think you saved 4% on commission, but you paid 10% more for the goods.
- The “Kickback” Culture: In Yiwu, transparency is everything. A “free” agent will never fight for a lower price for you because their secret profit depends on the booth owner’s “loyalty fee.”
My Advice: Look for an agent who is brave enough to charge a fair fee (3-5%). A professional agent’s job is to save you more money through negotiation than what they cost you in fees.
