分类： China Procurement

“EXW,” “FOB,” “CIF,” “DDP” — these four letters appear on nearly every Chinese supplier quotation, and they are among the most commonly misunderstood parts of importing. Pick the wrong Incoterm, and you can end up paying inland trucking you did not expect, absorbing cargo damage you thought was the factory’s problem, or losing weeks on customs clearance. This Incoterms explained guide breaks down the four terms most relevant to China-based B2B buyers: who pays what, where risk transfers, common pitfalls, and how to choose the right term for your shipment. Once you understand these four, 90% of your China import quotes will make sense.

1. What Are Incoterms and Why Do They Matter?

Incoterms (International Commercial Terms) are a standardized set of rules published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international shipments. Each Incoterm answers two questions: who pays for each leg of the journey, and at what point does risk transfer from the seller to the buyer.

• They are not shipping methods — they are contractual allocation of cost and risk. The same container can ship EXW, FOB, CIF, or DDP depending on your agreement.
• They do not replace a sales contract, invoice, bill of lading, or insurance policy. They clarify which party handles each piece.
• Using the latest version (Incoterms 2020) is standard practice now. If a quote says “FOB Shenzhen” without a version, assume 2020 terms and confirm in writing.
• The single most expensive mistake importers make is confusing cost transfer with risk transfer. They happen at different points under different terms. A cheap EXW quote can become the most expensive shipment you ever run if the cargo is damaged before it even reaches the port.

2. EXW, FOB, CIF, DDP — Side-by-Side Comparison

These four terms cover almost every China-to-US/EU/Australia shipment. Here is what each one means in practice.

• EXW (Ex Works): The factory’s only obligation is to make the goods available at their premises. You — the buyer — handle absolutely everything from the factory door: inland trucking to the port, export customs declaration, ocean/air freight, insurance, import customs clearance, duties, and final delivery. Risk transfers the moment the goods leave the factory loading dock.
• FOB (Free On Board): The factory delivers the goods onto the vessel at the named Chinese port (e.g., FOB Shenzhen, FOB Ningbo). They pay for inland trucking, export clearance, and loading onto the ship. You pay for ocean freight, insurance, import duties, and delivery. Risk transfers once the goods are on board the vessel.
• CIF (Cost, Insurance & Freight): The factory pays for ocean freight and minimum insurance to the named destination port (e.g., CIF Los Angeles). You handle import customs, duties, and on-carriage from the destination port to your warehouse. Risk transfers when the goods are on board the Chinese vessel — not at the destination port, despite what the name suggests.
• DDP (Delivered Duty Paid): The factory (or their forwarder) handles everything: inland transport, export clearance, international freight, insurance, import customs clearance, duties, taxes, and final delivery to your door. You sign for the package. Risk transfers at your warehouse. DDP is the most buyer-friendly term — but also the one where Chinese sellers most often under-quote and then surcharge you later.

3. Who Pays for What — and Where Risk Transfers

The fastest way to compare these four terms is to map responsibility across the journey. Here is the practical breakdown for a China-to-US warehouse shipment.

• EXW: Buyer pays factory trucking, export docs, freight, insurance, US import clearance, duties, and US delivery. Risk transfers at factory dock.
• FOB: Factory pays to get goods on the Chinese vessel; buyer pays freight onward, insurance, US clearance, duties, and delivery. Risk transfers at the Chinese port on board.
• CIF: Factory pays freight + minimum insurance to US port; buyer pays US import clearance, duties, and inland delivery from port to warehouse. Risk still transfers on board the Chinese vessel, even though factory pays freight.
• DDP: Factory pays everything through to your door, including import duties and US local delivery. Risk transfers at your warehouse — but only if the DDP quote is truly all-in; many Chinese sellers quote “DDP” excluding duties.

The most common misconception: under CIF, the seller is not responsible for damage during the ocean voyage. Risk already transferred on board the vessel in China. The seller only bought minimum insurance — enough to claim against if something goes wrong, but you are the party who must chase the claim. For high-value shipments, buy your own cargo insurance regardless of Incoterm.

4. How to Choose the Right Incoterm for Your Shipment

There is no universally “best” term. The right choice depends on your experience, order size, product value, and how much control you want over the logistics chain.

• Choose EXW if you have an experienced forwarder, you are consolidating multiple suppliers in one container, or you want maximum control over logistics and pricing. New importers should avoid EXW — export documentation in China is not something a foreign buyer can easily handle themselves.
• Choose FOB for most first-time and mid-size importers. It is the industry default, the factory handles Chinese-side logistics, and you can use your own forwarder to negotiate freight. This is the safest middle ground for most China B2B orders.
• Choose CIF for lower-volume ocean shipments where the factory’s freight rate is competitive and you have a US forwarder who can handle port arrival. Avoid CIF for high-value cargo — the included insurance is minimal.
• Choose DDP for small parcels, air freight, e-commerce FBA shipments, or first-time buyers who want a door-to-door experience. But demand a written, all-in DDP quote with named duties and taxes — and watch for hidden fuel surcharges, customs bond fees, or “remote area” delivery charges.
• Never agree to a term without a named location (“FOB Yantian,” not just “FOB”). Vague Incoterms are a classic source of disputes.

Quote Smarter, Land Cheaper

Incoterms are not legal jargon — they are the roadmap of who pays for every leg of your shipment. Once you can read a quote’s Incoterm at a glance, you can compare factories on a true apples-to-apples basis, avoid surprise inland charges, and know exactly when cargo risk becomes your problem. For small or growing importers, FOB is the default, DDP is a convenience you pay for, EXW is a power move for experienced buyers, and CIF is rarely worth its name. To pair this with supplier verification, sampling discipline, and MOQ negotiation, explore our complete China procurement guides and build a sourcing workflow where every quote, contract, and container moves in your favor.

Thousands of US small-business owners, Amazon sellers and wholesale buyers successfully import from China to the USA every year. The process looks complex from the outside — suppliers, factories, forwarders, customs brokers, CBP filings — but it is actually a repeatable 9-step workflow. This guide walks you through the entire import process from first product idea to goods on your shelf, with the documents you need and the CBP rules that trip up new importers most often.

Step 1: Product Selection and Feasibility Check

Before contacting any supplier, confirm the product can legally enter the US and that the margin works. Spend half a day on this; it saves months later.

• Identify the HTS code (Harmonized Tariff Schedule) for your product on usitc.gov. The 10-digit code determines duty rate, any Section 301 tariff, and whether FDA / FCC / CPSC / FMC approval is required.
• Check whether the product is restricted or requires certification: electronics need FCC, children’s products need CPSC / CPC, food and cosmetics need FDA, medical devices need FDA 510(k), furniture with wood needs Lacey Act declaration.
• Calculate your target landed cost: product cost + sea/air freight + duty + MPF/HMF + customs broker + last-mile. Your retail price should be at least 3× landed cost for healthy margin.
• Confirm the product is not on the UFLPA (Uyghur Forced Labor Prevention Act) high-priority list — cotton, tomatoes, polysilicon and related goods from Xinjiang are detained at the border with almost no release path.

Step 2: Find and Vet Suppliers

Build a shortlist of 5–8 candidates on Alibaba, Made-in-China, Canton Fair directories or referrals. Then narrow down:

• Request the Chinese business license and verify the unified social credit code on Tianyancha or Qichacha.
• Conduct a 15-minute video call showing the production floor; ask them to hold up today’s date on paper.
• Order a paid sample yourself. Evaluate materials, workmanship, packaging and labeling against your spec.
• Check the supplier’s export history (number of years exporting to the US, typical customer size) — a factory that already serves US buyers will understand CPSC labeling and FBA carton requirements.

Step 3: Negotiate, Sign PI and Pay Deposit

Once a sample is approved, lock the deal with a signed Proforma Invoice that lists: product spec, quantity, unit price, Incoterms (commonly FOB Shenzhen or EXW), lead time, payment terms (typically T/T 30/70), packaging dimensions, and certifications required. Then wire the 30% deposit to the supplier’s corporate bank account — never a personal account.

Step 4: Production and Quality Control

Do not wait for the container to arrive to discover defects. Use a third-party QC inspector (SGS, Bureau Veritas, QIMA, or a local inspection firm) at two points:

• DUPRO (during production): at 20–30% completion, check raw materials and first-article samples.
• Pre-shipment inspection (PSI): when 100% is packed but before the balance payment. The inspector samples AQL 2.5, checks dimensions, packaging, barcodes and labeling. You release the 70% balance only after the inspection report passes.

Step 5: Book Shipping and Provide ISF

Hire a freight forwarder with a US customs brokerage arm. Give them:

• Commercial invoice and packing list from the supplier.
• The bill of lading details once the supplier books the vessel (sea FCL/LCL) or air waybill (air).
• Your ISF 10+2 filing — required by CBP for every sea shipment to the US, due 24 hours before the vessel leaves China. Your forwarder files it; fines for late filing can reach USD 5,000.
• AMS (Automatic Manifest System) filing, handled by the carrier.

Step 6: US Customs Clearance and Duty Payment

Your customs broker files the entry with CBP once the goods arrive at the port. Required documents:

• Commercial invoice (must show HTS code, country of origin, value, currency).
• Packing list, bill of lading / air waybill.
• Customs bond — either a single-entry bond or an annual continuous bond (minimum USD 500 for most importers; required once your annual entries exceed USD 10,000 in duty value).
• Any product-specific certificates (FCC, FDA, CPSC, FDA prior notice).

CBP charges Merchandise Processing Fee (MPF) (~0.3464% of entered value, minimum USD 31.67, maximum USD 612) and Harbor Maintenance Fee (HMF) (0.125% of value for sea shipments). On top, you pay the duty rate from your HTS code — remember that many China-origin goods also carry the Section 301 additional tariff (7.5% or 25% depending on the HTS list), so total duty can be much higher than the base rate.

Step 7: Drayage, Last-Mile and Stock On Shelf

After release, the container is trucked to your warehouse, an Amazon FBA station, or a 3PL. For FBA shipments, your carton labels, pallet labels and box content must be Amazon-compliant or the shipment will be rejected. Once goods are received, reconcile inventory, record landed cost per unit, and you are live.

Common Mistakes New Importers Make

• Skipping the HTS / Section 301 check and being shocked at duty rates at the border.
• Not getting a customs bond, causing the container to sit and rack up demurrage.
• Paying the 70% balance before the pre-shipment inspection.
• Forgetting ISF filing and receiving a CBP penalty.
• Under-declaring value to save duty — CBP audits and penalties for under-valuation are severe and can lead to seizure.

Get Started the Right Way

The first import always takes the longest — expect 8–12 weeks from sample to shelf. Your second and fifth shipments will run in 5–6 weeks because you already have the supplier, forwarder and broker relationships. To shorten the learning curve, work through our China procurement guides covering supplier vetting, payment terms, shipping modes and duty calculations before you place your first deposit.

You negotiated the price, the MOQ and the lead time — then the supplier asks, “What payment terms do you prefer?” For new importers, this question is more confusing than the price itself. Get your China payment terms wrong and you either overpay in fees, give away all your leverage, or risk losing a deposit to a fraudster. This guide explains how T/T, L/C, PayPal and escrow actually work, what ratios Chinese factories expect, and how to negotiate terms that protect both sides.

1. T/T (Telegraphic Transfer): The Industry Standard

T/T is simply a bank wire from your bank to the supplier’s Chinese (or Hong Kong) corporate account. It is the default payment method for 80% of China trade. There is no intermediary holding the money — once wired, it is the supplier’s cash.

Common T/T ratios you will see:

• 30% deposit / 70% balance before shipment (30/70): the universal standard. The supplier starts production with your 30%, and you pay the remaining 70% against the copy of the bill of lading or before the container leaves China.
• 30% / 30% / 40: deposit 30%, second 30% after pre-production sample approval, final 40% against copy B/L. Common for custom mold projects.
• 50/50: requested for very custom or low-MOQ items where the supplier bears raw-material risk. Negotiate it down.
• 100% against B/L after shipment (O/A 30/60): open account — only available to established buyers with repeat order history, or via your trade-insurer / bank.

Pros: low fees (USD 20–50 per wire from your side, plus intermediary bank fee USD 15–30), fast (1–3 working days), universally accepted by Chinese factories. Cons: no buyer protection — once wired you must trust the supplier. Mitigate by paying balance against inspection report, not just against B/L.

2. L/C (Letter of Credit): Bank-Backed, Fraud-Proof, Expensive

A Letter of Credit is a guarantee from your bank to the supplier’s bank: if the supplier presents the exact documents listed in the L/C (commercial invoice, packing list, bill of lading, inspection certificate), the bank pays them automatically. It is the most secure payment instrument for large or first-time deals.

• Sight L/C (L/C at sight): supplier is paid as soon as compliant documents are presented. Best for buyers who want certainty.
• Usance L/C (L/C 30/60/90 days): payment is deferred 30–90 days after document presentation. Useful for cash-flow management; supplier usually builds the financing cost into the price.
• Cost: your bank typically charges 0.125–0.25% of the L/C value plus issuance and amendment fees. For a USD 50,000 L/C, expect USD 150–400 in bank charges.
• Watch out: L/Cs are legal instruments. Any discrepancy between the documents and the L/C wording gives the supplier’s bank an excuse to refuse payment — or gives you an excuse to refuse payment. Engage your bank’s trade desk early and never accept an L/C draft without your bank reviewing it.

Best for: orders over USD 30,000, first-time suppliers you cannot fully verify, or commodity purchases where you want bank-grade protection. Overkill for small Alibaba orders.

3. PayPal, Escrow and Platform Protection

For small orders and early-stage relationships, third-party platforms do the trust work for you.

• PayPal: fees are 4.4% + fixed fee per transaction, plus a 2.5% currency conversion surcharge. Buyer protection covers goods not received or not as described, but Chinese suppliers often push back hard on fees. Use for samples (USD 50–500) only, never for bulk.
• Alibaba Trade Assurance: free built-in escrow on Alibaba-verified suppliers. You pay Alibaba; they release funds to the supplier after you confirm receipt or after a set date. Covers product quality, shipping damage and non-delivery. Best first-order protection for deals under USD 20,000.
• Made-in-China / Global Sources escrow: similar platform protection, slightly less common.
• Independent escrow (Escrow.com): neutral third party for deals not on a B2B platform. Fees start around 0.9% (minimum USD 25). Works for custom tooling and one-off projects.

4. How to Negotiate Payment Terms Like a Pro

Terms are a negotiation, not a fixed menu. Use this ladder to improve your position order by order:

• Order 1 (test): Alibaba Trade Assurance or PayPal for the sample, then T/T 30/70 with a third-party pre-shipment inspection on the balance. Do not ask for better terms yet.
• Order 2–3 (build trust): move to T/T 30/70 to the corporate account. Ask for the balance to be payable after your QC inspection, not just against B/L.
• Order 4+ (repeat buyer): ask to reduce the deposit to 20% or even 15%. Suppliers will usually agree if your volume is predictable.
• Large / strategic orders: ask for L/C at sight (supplier protection) or offer L/C 60 days (your cash-flow protection) depending on who has more leverage.
• Always negotiate: mold/amortization fees, tooling ownership, and who absorbs the bank charges (typically split 50/50). Put the agreed payment route, bank name and account number in the signed Proforma Invoice — never change bank details verbally or by email alone.

One final safety rule: if a supplier ever asks you to wire to a different account mid-project, call them on a previously known number to confirm. Email-hijacking scams on China T/T payments are common and can cost you the entire order.

Which Terms Should You Use?

Match the instrument to the order size and relationship stage: samples on PayPal, first bulk orders on Trade Assurance with a 30/70 T/T structure, repeat orders on plain T/T 30/70, and large strategic orders on L/C. Never pay 100% upfront, and never wire to a personal account. For a complete walk-through of how payment terms fit into a safer sourcing workflow, browse our China procurement guides on supplier verification, order contracts and customs clearance.

China is the world’s factory, but it is also home to a small but skilled population of scammers who target overseas buyers on Alibaba, Made-in-China and Google Ads. The good news: most China sourcing scams follow a predictable pattern. Once you know the red flags, you can spot a fake supplier in under five minutes and protect your deposit. This guide walks through the most common fraud types, the warning signs, and a due-diligence checklist that actually works.

1. The Most Common China Sourcing Scams You Will Encounter

Scammers do not need to trick every buyer — they only need one buyer who skips verification. Here are the four scams that cost importers the most money each year:

• The fake factory / trading-company-as-factory scam: a supplier claims to be a manufacturer with 500 workers, but they are actually a one-person trading desk that will outsource your order to the cheapest workshop and disappear if anything goes wrong. Photos on their website are stolen from real factories.
• The deposit-run (收款后失联): you pay the 30% T/T deposit. The supplier becomes suddenly unreachable — email bounces, WhatsApp goes silent, phone number disconnected. This is the classic advance-fee fraud and it targets buyers who skip verification.
• The sample bait-and-switch: you receive a beautiful sample approved by your QC. The bulk production uses cheaper material, thinner plastic, weaker batteries or fake certifications. By the time you discover it, the supplier argues the sample was “a special one-off.”
• The low-price fishing (低价钓鱼): the supplier quotes 30–50% below market to win your order, then adds “mandatory” surcharges after deposit — mold fees, material fees, certification fees, packaging fees — until the real price is higher than the original quote. If you refuse, they keep your deposit.
• The phishing / cloned-email scam: this one targets you after you have a real supplier. Hackers monitor your email thread, then send you a “bank details changed” notice from a lookalike address. Your payment lands in the scammer’s account. Losses are routinely USD 50,000+.

2. Red Flags That Mean You Should Walk Away

You do not need a detective agency. A few simple checks will filter out 95% of bad actors. Treat any of the following as a deal-breaker until explained:

• Unusually low pricing — more than 20% below the average of three other qualified quotes. Real factories have real cost floors.
• Only a free email address (gmail.com, yahoo.com, 163.com) for business contact, no company-domain email. A real trading company registers a domain.
• Refusal or delay on video calls / factory tours. “Our line is broken,” “no English speaker available,” “we can only send photos” — these are lies. A real factory puts you on WeChat video for 15 minutes.
• No verifiable business registration. Ask for the Chinese business license (营业执照) with the unified social credit code (统一社会信用代码). Look it up on tianyancha.com or qcc.com. If the company is less than one year old, has a tiny registered capital, or lists a residential address, be cautious.
• Bank account is a personal Hong Kong or Chinese account (individual name), not the company name on the contract. This is the single biggest deposit-run red flag.
• Pressure to pay fast — “price increases tomorrow,” “stock limited,” “holiday closing.” Legitimate suppliers let you verify.
• Products with famous logos, trademarked designs, or patent-protected items offered at scale. These are IP-infringement orders that will get your shipment seized.

3. Safe Payment Methods That Protect Your Money

How you pay matters as much as who you pay. Match the payment method to the trust level of the relationship.

• Trade Assurance (Alibaba) or Made-in-China escrow: best for first orders under USD 10,000. Funds are released only after you confirm receipt. Fees are built into the price.
• Escrow.com / independent escrow: useful for non-Alibaba deals. Both sides pay a small fee; goods and payment are released simultaneously.
• T/T 30/70 to a verified company account: standard after the first 1–2 orders. Always call the supplier to verbally confirm the bank details before wiring — never confirm over email alone.
• L/C at sight: for orders above USD 30,000. The bank guarantees payment against documents. Expensive and slow, but effectively fraud-proof for serious buyers.
• PayPal / credit card: only for samples and small test orders. Fees (4–5%) are too high for bulk, but buyer protection saves you if the supplier vanishes.
• Never: Western Union, MoneyGram, cryptocurrency, or payments to personal accounts. Once the wire leaves, it is gone.

4. A 7-Step Due-Diligence Checklist Before Any Deposit

Run this list every time, even for suppliers your friend recommended. It takes about two hours and costs nothing.

• 1. Cross-check the company name on Tianyancha / Qichacha — verify registration date, legal representative, registered address and scope of business.
• 2. Request a 15-minute video call showing the actual production line, the product being made, and a handwritten note with today’s date and your company name on screen.
• 3. Order a sample yourself (not the “free sample” they offer — pay for a random one) and compare it against the photos on their listing.
• 4. Hire a third-party QC company (e.g. SGS, Bureau Veritas, or a local inspector) for a pre-shipment inspection on the first order. Cost: USD 150–250 per man-day, cheaper than a lost container.
• 5. Verify the bank account name matches the legal entity on the contract. Call the supplier on a known number to confirm SWIFT details.
• 6. Start with a small trial order (5–10% of planned volume) before scaling up. Use the first order to test communication, quality and lead time.
• 7. Keep records: signed PI, WhatsApp chats, sample photos, inspection reports. If something goes wrong, these are your evidence for a chargeback or Trade Assurance claim.

Final Word

Sourcing from China is safe for the vast majority of buyers who follow basic verification. Scammers target the impatient and the cheap — people who pick the lowest price, skip the video call and wire a deposit to a personal account. Do your 7-step check, use a protected payment method on the first order, and never let urgency override verification. To build your own supplier shortlist the safe way, read our China procurement guides on finding vetted factories, negotiating payment terms and inspecting production before shipment.

“Make it like the sample” is the most expensive sentence in China sourcing. Without a written product specification sheet, every factory interprets “good quality” differently — and by the time you discover the mismatch, the defect rate is spread across 2,000 units on a boat. A spec sheet (also called a product spec or supplier specification) is the single document that turns your idea into something a factory can quote, build, and be measured against. This guide explains why it matters, the exact fields you should include, how to write it so it doesn’t get misread, and the most common mistakes buyers make.

Why a Product Specification Sheet Is Non-Negotiable

A spec sheet is not paperwork for its own sake. It does four jobs at once.

• It forces accurate quoting. Two factories bidding on the same written spec produce comparable prices. Without it, every factory guesses at materials and quality level, and you can’t tell a cheap quote from a fair one.
• It anchors the first sample. Your engineer (or you) approves a pre-production sample against the written spec. Any deviation is visible before mass production starts.
• It becomes the quality control reference. The inspection company uses your spec sheet to build the inspection checklist. “Check quality” becomes “verify dimensions within ±0.5 mm, color Pantone C, drop-tested, packaging per page 3.”
• It is your dispute document. If the delivered goods don’t match, the spec sheet is what you, the supplier, and the inspection firm all reference. Verbal promises have no weight; a signed spec does.

The Fields Every Supplier Spec Sheet Should Contain

Build your spec around these sections. You don’t need all of them for every product, but omitting a section is where substitutions and surprises hide.

• Product overview: Name, model, intended use, target market (this tells the factory which certification regime to apply to).
• Materials and components: Exact materials (e.g., “304 stainless steel, grade 201 not acceptable”), plastic resin grade, fabric weight and composition, electronics chipset, battery type. List approved alternatives explicitly — silence invites cheaper substitutions.
• Dimensions and tolerances: Overall size, key measurements, and acceptable tolerances in millimeters. A dimension without a tolerance is a wish, not a requirement.
• Functional and performance requirements: What the product must do, with numbers. Battery life in hours, load capacity in kg, water-resistance IP rating, operating temperature range, wattage, pressure — whatever defines performance.
• Appearance and finish: Colors with Pantone references, surface treatment (matte, glossy, anodized), logo printing method (silk-screen, pad print, laser engrave) and exact artwork file.
• Testing standards: The tests the product must pass before shipment — e.g., CE/EN standards, RoHS, REACH, FCC, drop test, aging test, pull test. Reference the specific standard number, not just “test it.”
• Packaging and labelling: Inner box dimensions, color printing, barcodes (EAN/UPC/FNSKU), warning labels, country-of-origin mark, and master carton construction. Include approved artwork for each.
• Certifications required for the destination market: CE, UKCA, FDA, CPC, CPSC, FDA food-contact, etc. State which party is responsible for obtaining each document.
• Acceptance criteria and AQL: The inspection standard and defect levels (e.g., ANSI/ASQ Z1.4, AQL 2.5 major, 4.0 minor) that govern whether a shipment is accepted or rejected.

How to Write It So the Factory Actually Understands It

A great spec sheet is precise, visual, and translated. These habits prevent 80% of miscommunication.

• Pair words with drawings. Include 2D/3D files, exploded views, dimensioned PDFs, and reference photos. A Chinese sales engineer may read English well, but they interpret the order through drawings — give them both.
• Use measurable numbers, not adjectives. Replace “thick material” with “1.5 mm wall thickness.” Replace “strong packaging” with “5-layer corrugated, ECT-44, 10 kg max stack.”
• Provide an approved physical sample. The spec sheet and a gold sample must agree. Number the sample, keep one on your side, and have the factory sign the spec against the sample.
• Translate it into Chinese. Even if the sales contact speaks English fluently, the workshop floor does not. A bilingual spec (or at least a Chinese version for production) catches errors that English-only specs miss.
• Version and date the document. Every revision gets a version number and date. Factories keep old files around; versioning stops them producing from a superseded spec.
• Attach it to the purchase order. The spec is legally meaningful only when it is referenced in the PO and acknowledged in writing by the supplier.

Common Mistakes That Break Spec Sheets

• Copying a competitor’s listing and calling it a spec. Marketing descriptions are not engineering requirements. A listing says “premium aluminum”; a spec says “6061-T6 aluminum, bead-blasted, Type III anodize.”
• Leaving out tolerances and AQL. Without tolerance numbers and an acceptance standard, the factory ships what’s convenient and the inspection has no benchmark.
• Forgetting packaging and label art. Packaging errors are among the most common and most expensive defects — FBA rejections and customs holds usually happen here, not on the product itself.
• Not stating who owns tooling and designs. Add a line clarifying that custom tooling, artwork, and specs you paid for remain your property.
• Sending the spec late. A spec handed over after price negotiation invites the factory to quote on their assumptions, then argue about scope when your real requirements surface.

A product specification sheet is the contract between your brand and the factory — not a formality, but the instrument that makes quotes comparable, samples approvable, inspections measurable, and disputes resolvable. The hour you spend writing it before the first PO saves weeks of rework later. To see how a complete sourcing workflow fits together — from spec sheet to sample approval, inspection, and freight — explore our China procurement guides for ready-to-use templates, checklists, and end-to-end buyer playbooks.

Choosing between air freight vs sea freight is one of the biggest cost decisions you will make when sourcing from China. Pick wrong and you either blow your margin on express charges or lose weeks of selling window waiting on a slow vessel. This guide breaks down real China shipping cost per kilogram and per cubic meter, compares transit times, and gives you a decision framework you can use on every quote.

1. Real China Shipping Cost: Air vs Sea, Per KG and Per CBM

As of 2026, here is what importers are actually paying on the major lanes from Shenzhen/Shanghai to the US West Coast and Western Europe (door-to-door, all-in, excluding duties). Use these as planning numbers — always get a live quote because fuel, peak season and surcharges move prices weekly.

• International express (DHL/FedEx/UPS): roughly USD 6–9 per kg door-to-door to the USA. Best for samples and urgent 50–200 kg shipments.
• Air freight (consolidated, airport-to-airport): roughly USD 4–6 per kg to US airports, plus USD 1–2 per kg for last-mile trucking. All-in door-to-door typically USD 6–8 per kg.
• Sea LCL (less-than-container, door-to-door): roughly USD 80–150 per CBM plus a bill-of-lading fee of USD 100–150 per shipment. Cheapest only when your cargo exceeds ~2 CBM.
• Sea FCL 20ft container: roughly USD 1,500–3,500 door-to-door to US West Coast in normal market conditions; 40ft HC roughly USD 2,500–5,500.
• Cost break-even point: below ~300 kg, air is often cheaper than LCL once you factor in pickup, documentation and destination fees. Above ~500 kg, sea LCL starts winning.

A useful rule: compare on a per-kg landed basis, not per shipment. A 500 kg LCL shipment that looks cheap on paper can end up more expensive than air once warehouse handling, CFS fees and customs clearance are added.

2. Transit Time: Air 3–7 Days vs Sea 15–40 Days

Speed is where the two modes diverge most. Plan backwards from the date your goods need to be on the shelf, not from the day the supplier finishes production.

• Air freight door-to-door to USA: 5–8 days total (1–2 days factory pickup + 1 day consolidation + 2–4 days flight + 1–2 days customs + 1–3 days last mile). Express courier door-to-door is 3–5 days.
• Sea LCL door-to-door to US West Coast: 25–35 days. To US East Coast via Panama: 35–45 days. Europe (Rotendorf/Hamburg): 28–38 days.
• Sea FCL door-to-door to US West Coast: 18–25 days after vessel departure, plus 3–7 days for port, customs and drayage. Full cycle from factory gate to your door is typically 25–35 days.
• Seasonal delays: avoid booking August–October at spot rates; blank sailings and port congestion during peak season can add 7–14 days.

If you are running Q4 promotions on Amazon or Shopify, the cut-off date for sea freight from China to the US is usually mid-September. After that, air is the only safe way to hit Black Friday.

3. When to Choose FCL, LCL or Air Freight

The right mode depends on cargo density, value density and urgency. Here is a practical decision matrix used by experienced importers:

• Choose air freight when: cargo is under 300 kg, value per kg is high (electronics, accessories, fashion restocks), or you have a hard selling deadline. Low-value, heavy, bulky goods almost never justify air.
• Choose LCL sea when: cargo is 2–15 CBM, you can wait 4–6 weeks, and the goods are not time-sensitive. Ideal for first test orders that are too big for air but too small for a full container.
• Choose FCL 20ft when: you can fill roughly 28 CBM or 10,000 kg — or when your goods are sensitive and you do not want them handled alongside other shippers’ cargo.
• Choose FCL 40ft HC when: cargo volume is 55–68 CBM and density is low (pillows, plastic goods, furniture). Per-kg cost drops dramatically.
• Special cases: oversized or overweight cargo (machinery, cars) goes by breakbulk or RORO. Dangerous goods (batteries, liquids) need DG-approved air or sea booking — factor in extra 5–10% surcharge.

4. Hidden Costs That Blow Up Your Shipping Budget

Most first-time importers compare only the headline rate and get burned by add-ons. Demand an all-in quote that explicitly lists:

• Origin pickup, export customs declaration and documentation fees.
• Terminal handling charges (THC) at both origin and destination.
• CFS (container freight station) fees for LCL, charged per CBM at both ends.
• Security fees, AMS/ISF filing for US-bound cargo, and tax (VAT/IOSS for EU).
• Detention and demurrage if your container sits at the port too long — these can run USD 150–300 per day.
• Oversize / over-weight surcharges and fuel adjustment factors (BAF).

Always ask the forwarder: “Is this quote door-to-door, all-in, excluding duties?” Get it in writing. A cheap quote that excludes destination charges is rarely a cheap quote.

Final Recommendation

There is no single correct mode — there is the correct mode for this shipment. As a starting point: samples and urgent restocks go by express; 100–500 kg time-sensitive cargo goes by consolidated air; test orders of 2–15 CBM go by LCL; repeat bulk orders go by FCL. Build a shipping calendar that mixes modes by SKU so you never run out of stock on your best sellers while avoiding air freight costs on slow-moving items. For more detail on how these costs feed into your landed price and how to negotiate with forwarders, explore our China procurement guides covering everything from supplier selection to customs clearance.

Getting a great price from a factory in Shenzhen is only half the battle. The other half is moving those goods from a Guangzhou warehouse to Amazon’s Düsseldorf fulfillment center, your Hamburg distribution hub, or a customer’s door — without surprise duties, rejected FBA inbound shipments, or a VAT bill you didn’t plan for. Shipping from China to Europe has its own rules: EU customs, VAT, IOSS, CE marking, and a choice of FBA head-haul, LCL consolidation, FCL containers, or DDP delivery. This guide walks through the main options, how DDP and clearance work, and the compliance checklist every importer into the EU needs.

Your Main Freight Options from China to Europe

The right mode depends on order size, urgency, and where the goods ultimately need to go.

• FCL (Full Container Load): A 20′ or 40′ container booked exclusively for your cargo. Best for high-volume, repeat orders — lowest cost per unit, roughly 28–35 days sail time to major North European ports (Hamburg, Rotterdam, Antwerp, Felixstowe).
• LCL (Less than Container Load): Your pallet shares a container with other shippers through a consolidator. Good for small importers and trial orders. Cheaper than air freight, slower than FCL, with extra handling at both ends, typically 30–40 days door-to-door.
• FBA head-haul (Amazon Europe inbound): Dedicated freight-forwarder services that collect from your Chinese supplier, handle export and import clearance, and deliver directly into an Amazon EU fulfillment center with the correct FNSKU and box prep. Often sold as a combined “China-to-Amazon-EU” rate.
• Express / air freight: DHL, FedEx, UPS, or dedicated air cargo for urgent, small, or high-value shipments. Fast (5–10 days) but expensive — usually reserved for samples, replacements, or top-up inventory during peak season.
• Rail freight (China-Europe rail): A middle path between sea and air, ~18–22 days to Western Europe via Yiwu/Chongqing to Duisburg. Worth considering for time-sensitive mid-volume cargo.

DDP Shipping, EU Clearance, and VAT

DDP (Delivered Duty Paid) means the freight forwarder handles export declaration, EU import customs clearance, pays the import duty and import VAT on your behalf, and delivers to your door. It is the most popular model for Amazon sellers and small importers because it removes the complexity of becoming your own importer of record.

• How DDP works: The forwarder uses their own or a nominated EU broker to clear the goods, settling duty and VAT, then bills you as an all-in landed cost per kilogram or per cubic meter.
• VAT registration is still your responsibility. Even under DDP, if you sell B2C within the EU or stock across multiple countries, you need an EU VAT number (commonly in Germany, the UK separately, and via the OSS scheme for pan-EU B2C sales). The forwarder’s DDP clearance does not exempt you from ongoing VAT filings.
• IOSS (Import One-Stop Shop): For B2C shipments under €150 sent directly to consumers, IOSS lets you declare and pay VAT at the point of sale instead of at the border — avoiding customer-facing duty surprises and delays.
• UK is separate post-Brexit: Great Britain requires its own GB/EORI, UK VAT, and UK-compliant marking. Don’t assume an EU route covers the UK.
• Beware under-declaration. Some cheap DDP quotes clear goods at abnormally low declared values to reduce duty. This exposes you (the importer) to back-tax, penalties, and seized stock. Verify the declared value matches your commercial invoice.

EU Compliance You Must Handle Before Shipment

Freight choices get most of the attention, but compliance failures are what actually block shipments at the border or inside Amazon.

• CE marking: Applies to a wide range of products sold in the EU — electronics, toys, machinery, PPE, medical devices, and more. Without CE and the corresponding Declaration of Conformity, customs or market surveillance can stop your goods.
• Product safety and documentation: The EU General Product Safety Regulation (GPSR) now requires a responsible person within the EU, labelled contact information on the product or packaging, and traceability documentation. Expect this to be checked at FBA inbound and by customs.
• REACH / RoHS / chemicals: Relevant for materials, textiles, electronics, and cosmetics. Confirm with your factory that the materials comply before production, not after.
• Labelling and language: Many product categories require warnings and instructions in the local language(s) of destination member states. Amazon will reject mixed-language packaging that fails category requirements.
• Amazon FBA prep: FNSKU labels, polybag suffocation warnings, bubble wrap, and box weight limits differ across EU fulfillment centers. If you use FBA, have the prep done either in China before dispatch or by a qualified EU prep center — doing it badly leads to rejected inbound shipments.

Choosing the Right Combination for Your Business

• First-time / small sellers (pilot orders): Start with LCL or an express/air option plus DDP. Lower risk, lower cash outlay, and the forwarder absorbs clearance complexity while you learn.
• Scaling Amazon EU sellers: Use a China-to-FBA-EU head-haul service with DDP, but get your VAT registration, EORI, and CE/GPSR paperwork in order before the first container.
• Wholesale / B2B distributors: FCL on FOB/CIF terms with your own EU customs broker and VAT registration gives the lowest landed cost and full control over clearance.
• Seasonal peak (Q4): Book early, add rail or air buffer stock, and remember that EU VAT and customs delays worsen in November — plan lead times backward from Black Friday.

Shipping from China to Europe is a system, not a transaction: factory handover, export declaration, ocean/rail/air carriage, EU import clearance, VAT and IOSS handling, FBA or final-mile delivery, and post-import compliance filings. Cutting one corner — a cheap DDP quote, missing CE, an undeclared shipment — usually surfaces as a much larger problem weeks later. For a step-by-step look at how buyers combine sourcing, inspection, and freight into a single China-to-EU workflow, explore our China procurement guides, where we cover supplier vetting, QC checklists, and landed-cost planning.

Most buyers know they should inspect goods from China. Fewer buyers know that “inspection” is not a single event — it is a tool you can deploy at different moments in production, and choosing the wrong moment means either paying twice for inspections or catching defects too late. The two workhorses are pre-shipment inspection (PSI) and in-process inspection (DUPRO, during production). This guide explains what each one covers, when each is the right call, how third-party inspection companies work, and how to match the inspection type to your order.

Pre-Shipment Inspection (PSI): The Safety Net Before Loading

A pre-shipment inspection happens when the order is 100% produced and at least 80% packed. A trained inspector visits the factory, samples finished goods according to an agreed statistical standard (usually ANSI/ASQ Z1.4 / AQL 2.5 for major defects), and releases a report before the balance payment is wired.

• Quantity and packing: Carton count, inner/outer packing accuracy, shipping marks, labelling correctness, and whether the master cartons are strong enough for ocean freight.
• Appearance: Surface defects, scratches, color matching against approved samples, print/logo quality, and consistency across the run.
• Functional testing: Random units are tested for the functions you specify — power-on, charging, buttons, hinges, seals, drop tests, and basic performance checks.
• Barcode and labelling verification: Especially critical for Amazon FBA sellers — FNSKU labels, suffocation warnings, country-of-origin marks, and compliance labels.

The huge advantage of PSI is timing: it is your last, cheapest chance to stop a bad shipment before it leaves China. Once the container is on the water, returning goods is usually more expensive than accepting a discount. The limitation: by the time PSI finds a systemic defect, rework is expensive and may delay the shipment by weeks.

In-Process Inspection (DUPRO): Catching Problems Mid-Production

An in-process inspection (often called DUPRO, “during production”) happens when roughly 10–50% of the order is completed. The inspector checks the first finished units coming off the line and the materials already in use, while the rest of the order is still being made.

• Early defect detection: If the first 500 units have a logo misalignment or a wrong material, the factory can correct the remaining 9,500 units instead of fixing 10,000.
• Material and component verification: Confirming that actual BOM components match your approved sample — for example, checking that the plastic grade, fabric weight, or charger spec is what you ordered.
• Workmanship and assembly process: Watching how the line assembles the product reveals process defects that finished-goods sampling may miss.
• Production timeline check: The inspector can also flag whether the factory is on schedule, which is a leading indicator of delays.

The trade-off is that DUPRO samples work-in-progress rather than fully packed units, so it cannot verify final carton packing or final finished consistency on its own. It is best paired with — not used instead of — a later check.

Third-Party Inspection Companies: How They Fit

Most buyers use independent third-party inspection firms rather than relying on the factory’s own QC, because the factory has an incentive to approve its own work.

• Major global providers: Bureau Veritas, SGS, Intertek, TÜV, and Asia Inspections-type regional firms all offer standardized on-site inspection services across China.
• Cost structure: Typically charged per inspector-day (roughly $150–$300 per man-day, depending on the firm and location), plus travel. A PSI for one product in one factory is usually one inspector-day.
• What you receive: A written report with photos, sampled quantities, defect classifications, measured dimensions, functional test results, and a clear “pass/fail” recommendation.
• You define the checklists. A good inspection company will let you build a custom checklist based on your spec sheet. Do not accept a generic template — your product has specific failure modes.

How AQL Sampling Shapes Both Inspections

Both PSI and DUPRO are normally executed using AQL (Acceptance Quality Limit) sampling, the industry-standard approach borrowed from ANSI/ASQ Z1.4. Rather than opening every carton, the inspector samples a statistically representative number of units based on the total order quantity. Typical thresholds are AQL 2.5 for major defects (anything that affects function, safety, or saleability) and AQL 4.0 for minor defects (small cosmetic issues unlikely to bother a customer). Critical defects that create safety or regulatory problems use AQL 0 — a single hit usually rejects the whole batch.

• Sample size scales with order size. A 500-piece order and a 5,000-piece order do not require ten times the difference in inspected units — the sampling table is designed so confidence holds across a wide range of quantities.
• Defects must be classified in advance. Tell the inspection company which issues count as major, minor, or critical. Without that mapping, they will classify everything conservatively and flag passable shipments as failures, or under-report real problems.
• You can tighten the AQL. For high-value or safety-sensitive products, negotiate a stricter AQL (e.g., 1.5 major) and 100% functional testing instead of sampled testing.

Which One Does Your Order Actually Need?

There is no universal answer. Match the inspection strategy to the product and the relationship.

• Simple commodity, trusted factory, repeat order: A single pre-shipment inspection is usually enough. You already know the baseline quality; PSI confirms the run matches it.
• New factory, new product, custom tooling, high defect risk: Use both. DUPRO at 20–30% production to catch process and material issues early, plus PSI at the end to verify final packing and finished quality.
• Complex electronics, medical-adjacent, children’s products: Add a pre-production sample approval (PP/FAI) before mass production starts, then DUPRO, then PSI. The upfront samples prevent tooling-level mistakes that no later inspection can fix cheaply.
• Very low-value, low-risk orders: You may skip formal inspection entirely for small pilot runs — but keep at least one PSI for any order tied to paid marketing or FBA launch.
• Branded / compliance-sensitive goods: Build in barcode, label, and certification checks into the PSI checklist; these are the most common reasons Amazon rejects FBA shipments.

Think of inspections as a layered defense, not a single gate. PSI protects you before the container sails; DUPRO protects you while the order is still fixable; pre-production samples protect you before mass production even begins. Skipping the right layer is what turns “we’ll check it” into a 20% defect rate on your doorstep. To build a complete QC workflow that matches your product and order size, explore our China procurement guides for deeper checklists, inspection report samples, and supplier audit templates.

You found a promising supplier on Alibaba, made a great connection on WhatsApp, and now they want a 30% deposit before production starts. Before you wire a single cent, you need to verify the Chinese manufacturer on the other side. Every year, thousands of overseas buyers lose money to shell companies, resellers pretending to be factories, and outright scammers. The good news? A structured China supplier due diligence process takes only a few days and dramatically cuts your risk. This guide walks you through the exact steps experienced importers use to confirm that a manufacturer is real, capable, and trustworthy before payment leaves your account.

1. Check the Business License & National Credit Registry

The single most important document in China is the Business License (营业执照, yíngyè zhízhào). It lists the company’s registered name, unified social credit code, legal representative, registered capital, establishment date, and — critically — its business scope. A legitimate manufacturer’s license will explicitly include production or manufacturing in its scope; a trading company’s license will only list import/export and sales.

• Ask the supplier for a clear photo or PDF of their Business License, then cross-check the unified social credit code on the National Enterprise Credit Information Publicity System (国家企业信用信息公示系统, gsxt.gov.cn). This is the official government database — not an Alibaba profile.
• Confirm the company status is “存续” (active/existing), not “注销” (cancelled), “吊销” (revoked), or “停业” (suspended).
• Check the establishment date — a company registered six months ago offering rock-bottom prices on complex products is a red flag. Aim for at least 3–5 years in business for most categories.
• Review registered capital: a factory claiming heavy-metal stamping, injection molding, or CNC machining should have registered capital in the range of RMB 1–10 million or more, not RMB 100,000.
• Look for administrative penalties, operational anomalies, or court judgments listed on gsxt. Even one “经营异常” (business anomaly) entry warrants a serious conversation.

2. Confirm Years in Business, Scale & Production Capacity

A license tells you the company exists; it does not tell you whether they can actually make your product at your volume. You need to dig into their operational reality.

• Ask for their factory floor photos, production line videos, and equipment list. A real manufacturer can walk you through their workshop on a live video call within hours; a trading company will deflect with excuses.
• Request yearly output figures, employee count, and main product categories. Cross-reference these with what they’ve told you on Alibaba or their website.
• Ask which brands or well-known retailers they currently supply (even under NDA). Established factories usually have recognizable reference clients you can indirectly verify.
• Check whether their production capacity matches your MOQ. A small workshop with 15 workers cannot deliver 50,000 units per month of an assembled electronics product — and over-promising capacity is a classic reseller trap.
• Look at their export history: do they already ship to your market? Suppliers with years of US/EU/Australian experience understand packaging, labeling, and compliance expectations far better than newcomers.

3. Conduct a Factory Audit: On-Site or Live Video

Nothing replaces seeing the operation with your own eyes. If you’re sourcing large or high-risk orders, budget for a third-party on-site factory audit (typically US$200–$400 per audit through firms like SGS, Bureau Veritas, or Intertek). For smaller orders, a structured live video factory tour is a strong middle ground.

• During a video tour, ask them to show the entrance sign, production floor, QC area, warehouse, and finished-goods packaging. Watch for signs of staging: a real factory has messy, active production lines; a fake one often shows a clean showroom or an unrelated workshop.
• Ask them to hold up a newspaper or the current date on a screen during the call — this proves the footage is live, not reused from a previous visit.
• An on-site audit report should cover: legal compliance, building/facility condition, equipment list, production process flow, QC system, employee count, and environmental/health & safety status.
• For regulated products (electronics, toys, medical devices, food contact), require ISO 9001, BSCI, Sedex, or industry-specific certifications and verify the certificate number on the issuing body’s website — fakes are common.
• If the supplier refuses any form of video call or audit at all, treat that as an automatic disqualification, regardless of price.

4. Third-Party Reports, Peer Reputation & Payment Terms

Beyond the factory itself, you should independently triangulate the supplier’s reputation. A short list of checks catches most of the remaining risk.

• Search the company name plus “scam,” “fraud,” “complaints,” “review” on Google, import forums, and B2B communities. Pay special attention to English-language buyer reports.
• On Alibaba, look at Trade Assurance order volume, response rate, on-time delivery rate, and years Gold Supplier — but treat these as signals, not proof. Many resellers game these metrics.
• Check payment method policy: legitimate factories accept T/T wire transfer to their corporate bank account (company name matches the license). They will not insist on Western Union, PayPal to a personal account, or a third-party “agent” account whose name differs from the license.
• Be suspicious of quotes 30–50% below the market average. Chinese manufacturing is efficient, but not magical. A price that seems too good usually means either they plan to substitute cheap materials later, or the company exists to collect deposits and disappear.
• For orders above US$10,000, consider escrow services, irrevocable L/C, or Alibaba Trade Assurance to keep your deposit protected until inspection passes.

Start Your China Sourcing with Confidence

Verifying a Chinese manufacturer is not a one-time formality — it is an ongoing discipline that protects your margin, your brand, and your supply chain. By combining license checks on gsxt.gov.cn, live or third-party factory audits, reference-client verification, and cautious payment terms, you eliminate the vast majority of bad actors before money changes hands. If you want a deeper playbook covering supplier shortlisting, quotation comparison, and quality control, explore our China procurement guides for a complete, field-tested framework built for importers, ecommerce sellers, and brand owners sourcing from China.

A good China sourcing agent can be the difference between a product launch that scales and one that drowns in missed communications, quality surprises, and hidden fees. But the word “sourcing agent” covers everything from a one-person freelancer in Yiwu to a full-service procurement company with in-house QC, engineering, and logistics teams. Choosing the wrong one doesn’t just cost money — it can damage your brand with customers who never see the factory. This checklist explains what a sourcing agent actually does, when you genuinely need one, and exactly what to evaluate before you sign.

What a Sourcing Agent Actually Does

Buyers often assume an agent just “finds factories.” In practice, the role spans the whole order lifecycle, and the best agents act as your on-the-ground procurement office.

• Supplier identification and vetting: Shortlisting factories that match your category, verifying business licenses and actual production capacity, and filtering out trading companies pretending to be manufacturers.
• Negotiation and order management: Quoting back-and-forth, confirming MOQs, payment terms, lead times, and chasing production schedules on the ground.
• Quality control: Arranging pre-production sample approval, in-process checks, and pre-shipment inspections — either in-house or through a partnered third-party inspection firm.
• Documentation and logistics coordination: Handling commercial invoices, packing lists, booking freight, and sometimes customs clearance at origin.
• Problem resolution: The real value. When goods are delayed or defective, a local person who can walk onto the factory floor saves weeks of email ping-pong.

When You Actually Need a Sourcing Agent

Hiring an agent is not mandatory for every importer. It is worth it when:

• You are buying multiple products or categories and don’t want to manage 10 factory relationships yourself.
• You cannot travel to China frequently but need someone on-site for samples, inspections, and factory audits.
• You lack Chinese language ability or familiarity with local negotiating norms (moq, payment milestones, festivals).
• Your orders are complex — custom tooling, mixed containers, or products that require engineering input.
• You have been burned by Alibaba suppliers before and want a trusted filter.

If you are a first-time buyer with one simple commodity product and a low budget, a well-vetted Alibaba supplier plus a paid third-party inspection may be cheaper. An agent earns their fee when complexity rises.

The Selection Checklist: What to Evaluate

Run every candidate through this list before you commit. A confident agent should answer each point in writing.

• Relevant industry experience: Ask which categories they specialize in. An agent great at furniture may be weak at electronics. Request references from buyers in your niche.
• Supplier network depth: Ask how many active factories they work with in your category and whether those are direct manufacturers or trading companies. The answer reveals whether they can negotiate real pricing.
• Quality control capability: Do they have in-house QC staff, or outsource inspections? How many inspections per month do they run, and can you see a sample inspection report? Avoid agents who promise “we’ll check quality” with no documented process.
• Fee structure: Common models are a flat commission (3–10% of FOB value), a fixed retainer, or a per-order service fee. Watch for agents who secretly receive kickbacks from factories — always ask whether factories pay them anything on top of your fee, and get it in writing.
• Communication ability: Test response time, English clarity, and whether they proactively flag issues instead of only replying to questions. You will message this person at 2 a.m. your time when a container is delayed.
• Office location and legal entity: A registered company with a real office (in Shenzhen, Guangzhou, Yiwu, Ningbo, etc.) is more reliable than a WhatsApp-only freelancer. Ask for their Chinese business license and check it on the National Enterprise Credit Information Publicity System.
• Contract terms: Expect a written service agreement covering scope, fees, confidentiality, IP ownership of designs you share, who holds payments to factories, and how disputes are handled. Never send your factory payments to the agent’s personal account without clear terms.
• Technology and transparency: Do they send photo updates during production? Can you track orders in a shared system? Transparency is the single best protection against hidden problems.

How to Work Effectively Once Hired

Even the best agent underperforms when buyers treat them as a black box. Set the relationship up for success.

• Start small. Give the agent one pilot order before you hand over your whole product line. This tests their real execution, not just their sales pitch.
• Share your target price, not just your target product. Agents negotiate better when they know your landed-cost goal and margin ceiling.
• Be explicit on specs and acceptance criteria. Vague requirements (“good quality”) lead to vague results. A written spec sheet (see our product specification guide) removes ambiguity.
• Pay factories through clear milestones — typically 30% deposit, 70% against inspection report and bill of lading — and make sure the agent follows this discipline.
• Review reports together. Read the inspection reports they send, ask questions, and build a shared understanding of what “acceptable” means for your brand.

A sourcing agent is not a vendor you outsource decisions to — they are an extension of your team on the ground in China. The right choice compounds: better factories, cleaner quality, faster problem-solving, and lower hidden costs over time. The wrong choice compounds in the opposite direction, quietly inflating your landed cost while you assume everything is fine. To compare what a good sourcing partnership looks like for your product, browse our China procurement guides, where we break down supplier vetting, inspection workflows, and end-to-end import processes.