Answering this question is challenging due to the various needs and differences among businesses. However, it’s important to consider the specific circumstances and requirements of each situation.
For instance, if you have a simple product and require a small order quantity, engaging a purchasing agent may not be in your best interest. Let me provide an example to illustrate this point.
Recently, a client approached us with a request to source 100 pillows. Typically, the industrial cluster for pillows is located in Hebei Province, which is in northern China. Meanwhile, our company is based in southern China.
Upon contacting a Chinese trading company on Alibaba, they quoted a price of $5.00 USD per pillow, which included all expenses. However, we were aware that the factory cost for these pillows was $3.50 USD.
If the customer were to purchase the pillows through Alibaba, they would pay $500.00 USD (100 pillows x $5.00 USD) for an all-inclusive price. In contrast, if they opted to engage our services, they would need to pay an additional $100.00 USD as a service fee, on top of an extra amount to cover shipping from North China to South China. In this particular case, the customer would derive very little value from using our services, as they would be better off purchasing directly from Alibaba.
This scenario highlights a common dilemma faced by customers seeking to buy small quantities of products.