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The buyer's guide

Costs, payment, timelines, and the mistakes that cost the most.

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Cost

What actually makes up your landed cost

Unit price is usually 50–70% of what you finally pay. A quote compared on unit price alone is a quote compared on the smaller half of the number.

1

Unit price (EXW/FOB)

The factory price. The only figure most buyers compare — and therefore the one most easily discounted to win an order that is made back elsewhere.

2

Inland freight in China

Factory to port. Minor on a full container, disproportionate on a part load moving from an inland province.

3

Export clearance and origin documents

Export declaration, certificate of origin, and any inspection certificates the destination market requires.

4

Ocean or air freight

The most volatile line item. Rates move with season, fuel, and capacity — a freight quote three months old is not a quote.

5

Cargo insurance

Typically a small percentage of cargo value. Cheap relative to the loss it covers, and routinely skipped.

6

Import duty and VAT

Driven by HS code and destination. Misclassification is common and expensive, because it triggers penalties rather than simple corrections.

7

Port, handling, and demurrage

Terminal handling, customs examination fees, and storage if clearance stalls. Demurrage accrues daily and is almost entirely avoidable with correct paperwork.

8

Final-mile delivery

Port to your warehouse, including special handling for oversized, fragile, or hazardous goods.

A landed-cost estimate before you commit is worth more than a lower unit price after you have.

Payment

How payment is usually structured

The instrument you use decides how much recourse you have if something goes wrong. Choose it before you send money, not after.

T/T

Telegraphic transfer

A bank wire, commonly 30% deposit with the balance before shipment. Fast and cheap, but offers little recourse once sent — which is exactly why the balance should be tied to a passed inspection rather than a promised date.

L/C

Letter of credit

A bank guarantees payment against presented documents. Strong protection on large orders, at the cost of bank fees and strict document discipline — a single discrepancy can hold payment.

D/P

Documents against payment

Shipping documents release only on payment, handled bank to bank. A middle ground: cheaper than a letter of credit, more structured than a bare wire.

Escrow

Platform escrow

Funds held by a marketplace until you confirm receipt. Genuinely useful for small trial orders; rarely practical at container scale.

Timelines

Realistic timelines

Typical ranges, not promises — complexity, tooling, and season all move them. The value is in planning against honest numbers rather than best-case ones.

Phase Typical What moves it
Supplier shortlisting and verification1–2 weeksLonger for technical or regulated products
Sampling and revisions2–4 weeksEach revision round adds roughly a week
Production20–45 daysHighly product-dependent; new tooling adds materially
Inspection and freight booking3–7 daysA failed inspection means rework and rebooking
Ocean transit to East Africa25–40 daysPort to port, before clearance
Customs clearance2–10 daysClean paperwork is the single biggest variable

Pitfalls

Six mistakes that cost buyers the most

Every one of these is common, expensive, and entirely avoidable if you know to look for it.

01

Comparing quotes on different Incoterms

An EXW quote and a DDP quote are not comparable numbers. Normalise every quote to the same term first, or you will pick the most expensive supplier believing it is the cheapest.

02

Paying a deposit to an unverified supplier

A 30% deposit to a company you have not verified is 30% at risk. Verification costs a fraction of that and takes days, not weeks.

03

Skipping the pre-production sample

Approving a catalogue photo rather than a sample built to your specification. Whatever you approve becomes the reference every later inspection is judged against.

04

Ignoring the Chinese New Year calendar

Factories close for two to four weeks and run hot for weeks either side. Orders placed in the wrong window ship late regardless of what was promised.

05

Mistaking a trading company for a factory

Both are legitimate and both have their place. Problems start when you believe you are speaking to the factory and you are not — pricing and quality control work differently.

06

Accepting an under-declared invoice value

Sometimes offered by a supplier as a favour to reduce your duty. It is customs fraud in your market, and the liability sits with the importer of record — you.

Glossary

Terms worth knowing

The vocabulary that shows up in quotes and contracts, in plain language.

MOQ
Minimum order quantity — the smallest run a factory will accept. Often negotiable on a first order, usually at a higher unit price.
HS code
Harmonised System code classifying goods for customs. It sets your duty rate, and misclassification carries penalties.
Golden sample
The approved reference unit retained by both parties. Every later inspection is judged against it.
LCL / FCL
Less than container load (shared) versus full container load. LCL costs more per unit of volume and is handled more times.
Demurrage
Daily charges once a container sits at destination beyond its free time. Usually caused by paperwork, not by shipping.
PVoC
Pre-export verification of conformity, required by several African markets before shipment. Missing it means goods are refused at arrival.

Which Incoterm to ask for

Resources

Guides and references

Practical material we use with clients. Ask and we will send it over — no signup wall.

Pre-shipment inspection checklist

The checks worth insisting on before goods leave the factory — quantity verification, workmanship, function testing, packaging, and shipping marks.

Chinese New Year planning calendar

Factories close for two to four weeks and capacity tightens for weeks either side. This is the single most common cause of missed deadlines for first-time buyers.

Incoterms quick reference

What each term actually obliges each party to do, where risk transfers, and which one to ask for depending on how much control you want.

Supplier verification questions

The questions that separate a manufacturer from a trading company, and the documents to ask for in each case.

Each of these is sent by a person, not an autoresponder.

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