01
Understand the main fee models
A percentage model scales with managed order value, while fixed fees may suit clearly bounded work. Day rates fit visits or defined local tasks. Paid quotation work can compensate for large early-stage projects before orders are confirmed.
No model is automatically best. The buyer should know the calculation basis, minimum charge, included work and change process.
| Fee model | Useful when | Question to confirm |
|---|---|---|
| Percentage of product value | Ongoing sourcing and order coordination | Which product value and which tasks are included? |
| Fixed project fee | Scope and deliverables are stable | How are changes or extra suppliers charged? |
| Day rate | Visits or defined local work | Hours, transport, guests and overtime? |
| Quotation or retainer fee | Substantial work before order commitment | Is it credited later and what output is delivered? |
02
Compare inclusions before comparing rates
A lower rate may exclude inspection, detailed quotation comparison or multi-supplier follow-up. A higher rate may still be poor value if deliverables and evidence are vague.
Request a written list of outputs and frequency: supplier options, quotation table, sample register, order record, progress evidence, inspection report and shipment coordination.
03
Check how the agent is paid
Ask whether the agent receives supplier rebates, commissions or price markups in addition to the buyer-paid fee. The commercial model should be disclosed so the buyer can assess conflicts and compare supplier pricing.
VELA states its client-paid fee separately and says it does not rely on undisclosed supplier rebates. Factory and third-party charges should remain identifiable.
04
Calculate the broader project cost
Product price, sourcing fee, samples, packing, domestic transport, inspection, warehousing, consolidation, freight, insurance, duties, taxes and destination work may all affect total cost.
Do not publish or rely on a fixed saving percentage without a comparable baseline, defined scope and documented calculation.
- Use the same product specification for price comparison.
- State the trade term and destination basis.
- Separate estimated from confirmed third-party costs.
- Record currency and exchange-rate assumptions.
05
Confirm payment and change controls
The agreement should state when fees become due, what happens if the buyer cancels, how supplier changes are handled and which work requires additional approval.
Supplier deposits and balances are separate commercial risks. Verify the contracting entity, beneficiary and release conditions before payment.
Buyer questions
Frequently asked questions
Is a 3% sourcing fee cheap?
It cannot be judged without the order value, minimum fee, included work and separate costs. Compare deliverables and risk controls, not the percentage alone.
Are freight and warehouse charges normally included?
Often they are separate third-party costs. The agreement should state this explicitly and identify who contracts each provider.
Should an agent disclose supplier commission?
Buyers should request disclosure of rebates, commissions and markups so they understand incentives and the true commercial structure.
Can I pay the factory directly?
That depends on the agreed route. Direct payment can preserve visibility, but the buyer must verify the contract, beneficiary and controls before transfer.
What should a fee quotation include?
It should include calculation basis, minimum charge, tasks, outputs, exclusions, third-party costs, payment timing and change terms.