Best China Sourcing company
That Drives Profit Growth
How much profit does a trader make?
It depends on a lot of factors. The profit of a trader depends on competition, industry, product, and processes. It is fair to say that a trader adds a 10-15% profit margin for their services. In some cases, it can go much higher or lower. When there is a lot of competition in the industry, the traders are bound to lower their margins. The earnings also depend on the strength and size of the buyers. If the buyer is big and has negotiation power, the traders usually offer a lower price by reducing their margin.
Since they are not manufacturers, they cannot do anything that can significantly lower the cost of products. In some cases, when a trader works with different suppliers and has sizeable operations, he can negotiate reasonable terms with the manufacturers and significantly increase his profits. Some manufacturers also have designated traders; these traders have the authority to offer special prices. It is fair to say that a good trader can make from $300,000 to $3 million a year if he has a good command of the operations and sales services.