Purchasing Agents: Profit Goes along with Problems
By Dawn Chen
Receiving purchase orders, searching in shopping malls and then delivering the items from Cotai to a courier at Gongbei (the largest border gate to Zhuhai, China), this is Wu Fan's weekend routine. After the items arrive somewhere in mainland China, at her customer's hands, "I will get my commission," said Wu.
Wu, a student of University of Macau (UM), has just started her purchasing agent business along with her friend this semester. She realized there is "a big market" out there in the mainland, from which she believes she can make some money. Because of the advantage of duty free policy, Macao attracts numerous world-famous fashion brands to establish stores and outlets in the city. Spending less money to buy the same brand products motivates many mainlanders to turn to a purchasing agent in Macao.
Wu is not alone. Many students, especially those from mainland China, see the potential profits in this business, and join the team of purchasing agents. However, to some extent, it is not easy money. Some problems occurred when these students step out of the ivory tower and learn to survive in a fierce business battleground. Sometimes, even legal problems can be involved.
Purchasing agency is, more often than not, associated with tax evasion. According to Wu, the lowest price is always the customers' top concern. Therefore, in order to offer an alluring price, most purchasing agents keep silent when it comes to customs declaration. A student of Macao University of Science and Technology (MUST), who refused to be named, said that he had never declared luxuries he bought for his customers when passing the border gate. He added that it was a "norm" shared by both purchasing agents and their customers.
"In order to reduce the risks of being checked by customs officers, I would put the items in the backpacks of my friends and mine and then deliver to Gongbei. It is safer this way," said a UM student, surnamed Zhang, "Generally, customs officers will not approach people with only one or two backpacks. At least, I have never been checked."
Another problem is when they try to take pictures of goods in stores, which is often banned in many shops. But Zhang stressed the importance of photo taking, explaining that it is a way to prove that products he sells are genuine instead of knockoffs. In this case, the photo-taking ban forces them to do it privately. "It can be very embarrassing when you get caught," said Zhang. Nevertheless, the desire for better sales overcomes his fear of embarrassment. As an experienced purchasing agent, he said he would do it quickly when shop assistants turn away or in the fitting room if it is a clothes store.
Although facing some problems, driven by the huge profit, many student-purchasing agents are determined to continue. As Wu pointed out, "It is a profitable business with minimal cost. I will continue as long as it brings me more pocket money."