I would think that less than 0.01mm was good for a cheap chinese product! Beware that the run out does not greatly exceed that figure!
Run out could be caused by the holder or collets. Collet slots, needing to be cleaned up, seems to be a typical problem.
The responsibility for correction seems to be placed on the purchaser. That is not a good sign.
If the supplier is banggood, I would definitely avoid.