Understanding a 5–9% Sourcing Fee Before You Compare Offers

A percentage is only meaningful when its calculation base is clear. Five percent of product value is different from five percent of a total that also includes packing, domestic transport and international freight. Start by asking for a worked example using the same hypothetical order value across all proposals.

Define the fee base

For illustration only, a 5–9% fee on an agreed USD 20,000 product-value base would be USD 1,000–1,800. This is arithmetic, not an AN Sourcing quotation. If samples, inspection visits or local transfers are additional, add them separately before comparing the total service cost.

Match the fee to deliverables

An inexpensive proposal may cover introductions only. A more extensive assignment might include comparison sheets, sample coordination, production updates and consolidation records. Identify the number of suppliers, visits and revision rounds included. Ask how a cancelled line, a reduced quantity or an additional supplier changes the fee.

Put these points in writing

• The percentage, currency and exact calculation base.
• Any minimum charge or separate third-party expenses.
• Payment milestones and treatment of refunds or cancelled orders.
• The records delivered at each stage of the work.

AN Sourcing offers a 5–9% agency-fee model subject to agreed scope. A direct product quotation is another option. Request the applicable commercial arrangement before assuming that a percentage applies to every purchase.