1. Choose the Incoterm before you compare prices
A factory quote is meaningless until you know who pays for what. EXW means you collect from the factory gate; FOB means the supplier delivers to the Chinese port and handles export clearance; DDP means the seller delivers to your door with duty paid.
For a first order, FOB is usually the clearest: you can see the product cost and the freight cost separately. DDP is convenient, but the duty and freight are bundled into one number, which makes it harder to compare suppliers.
- EXW: cheapest on paper, most work for you
- FOB: product + export clearance, freight quoted separately
- CIF: freight and insurance included, but unloading and duty are not
- DDP: door-to-door with duty paid; convenient, less transparent
2. Verify the supplier is a factory, not a reseller
Many “factories” on marketplaces are trading companies. That is not automatically bad — a good trading company can consolidate and manage quality — but you should know which one you are dealing with, because it changes the price and the accountability.
Ask for the business licence (营业执照), check that the registered address matches the factory address, and ask for a short video walkthrough of the production line. If the licence says “trading” or “e-commerce”, ask who actually manufactures the product.
- Business licence name matches the bank account name
- Factory address matches the site visit address
- Video walkthrough shows the actual production line
- Ask for two existing export customers or a shipping document
3. Lock the spec with a sample
A sample is not a formality. It is the physical version of the contract. Approve it, photograph it, and ask the factory to confirm in writing that mass production will match it.
For private-label products, approve the artwork and packaging at the same time. Colour differences between the screen and the printed box are normal; approve a physical proof, not a PDF.
4. Agree payment terms that protect both sides
The common structure is a 30–50% deposit to start production and the balance before shipment. The deposit covers materials; the balance is your leverage for quality.
Never pay the full amount before inspection. If a supplier insists on 100% upfront, treat it as a risk signal. For larger orders, milestone payments tied to production photos are reasonable.
5. Choose sea, air or express by cost per kg and deadline
Sea LCL is the default for bulky goods. Sea FCL is cheaper per cubic metre once you fill a container. Air is for urgent, high-value or lightweight goods. Express is for samples and small parcels.
The mistake is comparing only the freight quote. Compare the landed cost: freight + insurance + duty + SST + port charges + last-mile delivery. A cheaper freight quote can lose on destination charges.
6. Prepare the documents before the ship arrives
Commercial invoice, packing list, bill of lading, and the certificate of origin if applicable. The HS code determines the duty rate; confirm it with your forwarder before shipping, not after.
If you are not GST/SST registered, factor the import SST into your selling price. The rate depends on the product and your registration status — do not rely on a generic percentage from a blog post.
7. Inspect before you pay the balance
A pre-shipment inspection is the cheapest insurance in the process. Check quantity, workmanship, measurements, function and packaging. If the goods fail, you still have the balance in hand.
Ask for photos of the actual cartons with shipping marks, not just product photos on a table.
Takeaway
The reliable sequence is: verify the supplier, approve a physical sample, pay a deposit, inspect before the balance, and compare landed cost rather than freight alone.