The result of international business activities largely depends on how the conditions in the relations between business partners are formulated.

One of the main instruments regulating relations in this area is the set of rules and trade terms called Incoterms (International commerce terms).

They were first proposed and approved by the International Chamber of Commerce in 1936.

Since then, different editions of Incoterms were introduced, and now we are using the 2010th edition of it.

Incoterms terms are recognized not only by commercial and industrial structures but also by government and legal bodies worldwide.

In this article, we’ll speak of CFR Incoterms – one such set of rules that has certain obligations and rightы for both parties of the trade contract.

What does CFR shipping mean?

CFR stands for Cost and Freight.

According to this set of rules, the seller completes the delivery when the goods pass the ship’s rail at the port of shipment.

As you may already assume, CFR Incoterms can be used only when we are talking about maritime transportation.

Under the CFR Incoterms 2010, the seller has the obligation to pay the costs and freight necessary to deliver the goods to the specified port of destination.

Naturally, this is not the only responsibility of the seller.

What are the obligations of the seller under CFR shipping terms?

# 1. Delivery of goods under the agreement

The seller has to provide the buyer with the goods accompanied by the commercial invoice or equivalent electronic message, as well as any other evidence of compliance that may be required under the terms of the agreement.

# 2. Licenses, certificates, and other formalities

The seller is obliged to obtain any export license or another official certificate, as well as to fulfill, if necessary, all customs formalities required for exporting of goods.

# 3. Transportation agreements

The seller is obliged to conclude a contract for the carriage of goods to the named port of destination by the usual and most appropriate shipping route.

All expenses, connected with this process are paid by the seller as well.

# 4. Delivery of goods

The seller must ship the goods on board of the vessel at the port of shipment on a specified date or within the agreed time.

# 5. Risk obligations

The seller must bear all risks of loss or damage to the goods until the goods cross the ship’s rail at the port of shipment.

# 5. Costs associated with the delivery of goods

The seller is obliged to bear all costs associated with the goods until they are delivered on board the ship.

Also, the seller has to pay the freight, including expenses for loading goods on board of the vessel and any costs for unloading goods at the agreed port of discharge.

Finally, he has to pay all costs associated with the implementation of customs formalities, as well as other duties, taxes and other fees payable during the export of goods.

Note: if the transit of goods takes place in the third countries territory, the seller has to pay such costs as well.

# 6. Buyer’s notification

The seller must notify the buyer that the goods have been delivered on board a certain vessel.

Also, he has to send the buyer any other notice required for him to take the necessary measures to receive the goods.

# 7. Documentation procedures

The seller must immediately provide the buyer with the usual transport document issued for the agreed port of destination.

This document (e.g., a negotiable bill of lading, non-negotiable sea waybill, proof of transportation by inland waterway transport) should:

• apply to the sold goods;
• be dated within the time agreed for the shipment of goods;
• enable the buyer to receive goods from the carrier at the port of destination

Unless otherwise agreed, such documents also might be needed for the buyer to sell the goods to a third party during transit by way of a transfer inscription (negotiable bill of lading) or by notifying the carrier.

If several originals of the transport document are issued, the buyer must be given a complete set of originals.

If the seller and the buyer agree to use electronic communications, the documents mentioned above may be replaced by equivalent electronic messages.

# 8. Checking, packing, and labeling

The seller must bear the costs associated with checking the goods (for example, checking the quality, size, weight, quantity) necessary for the delivery.

The seller is obliged to provide packaging at his own expense (unless it is customary in the given trade industry to send the goods without packaging), necessary for the transportation of goods organized by him.

Packaging must be properly labeled.

# 9. Other obligations

The seller must render full assistance in receiving any documents which may be required by the buyer to import the goods or, if necessary, for its transit transportation through third countries.

The seller must provide the buyer at his request with all the information necessary for obtaining an insurance policy.

What are the obligations of the buyer under CFR shipping terms?

#1. Payment obligation

The buyer must pay the price of the goods stipulated by the contract of sale.

# 2. Obligations connected with licenses and certificates

The buyer is obliged at his own expense and his own risk to obtain an import license or another official certificate, as well as to fulfill all customs formalities required for importing the goods and for their transit transportation through third countries.

# 3. Transport and insurance obligations

The buyer has no obligations in the case of a contract of carriage.

Because CFR shipping terms don’t have a word about the insurance contract, there is no buyer’s obligation on such matters as well.

So, if you want to buy insurance, you have to do it separately through some insurance agents and brokers.

# 4. Acceptance of delivery

The buyer must accept the delivery of the goods (i.e., receive the goods from the carrier at the named port of destination).

# 5. Risk obligations

The buyer must bear all risks of loss or damage to the goods from the moment the goods cross the ship’s rail at the port of shipment.

The main condition for this rule, however, is the proper conformity of the goods to the contract.

This means that the product must be properly identified, that is, clearly isolated or otherwise designated as the product that is the subject of this contract.

# 6. Allocation of costs

The buyer is obliged to bear all costs from the time of goods delivery on board of the vessel.

Bear in mind that this rule doesn’t imply that the buyer has to pay for the freight itself (which is a seller’s obligation as we said earlier).

In practice, it means that the buyer has to bear with fees and costs which arise at the port of destination.

For example, this is the import customs fees, costs of unloading of your goods (which is mainly the seller’s obligation, but not in all cases).

The main condition, just like for the previous rule, is the proper conformity of the goods to the contract.

# 7. Seller’s notification

If the buyer has the right to determine the period during which the goods should be shipped, and/or the port of destination, he is obliged to properly notify the seller about this.

# 8. Inspection of products

The buyer must bear the costs of any pre-shipment inspection of the goods unless the inspection is required by the authorities of the country of export.

In the latter case, the seller would be obliged to conduct and pay for the inspection.

What are the main differences between CFR and CIP Incoterms?

As you may know, CIP is another set of Incoterms, which is deciphered as Carriage and Insurance Paid to.

CIP states that the seller has to transfer the goods released in the customs regime of export to the carrier named by him.

Also, the supplier has to obtain minimal insurance for the products.

CIP is quite similar to CFR shipping terms, with the differences connected with insurance policy and transportation modes (in the case of CIP, all transportation methods can be used).

What is the difference between CFR and FOB Incoterms?

FOB stands for Free On Board.

The primary difference between using cost and freight (CFR) and free on board (FOB) shipping lies in who must pay for various freight costs.

The terms refer to the point at which transfer of responsibility for goods shipped occurs, from the seller/shipper to the buyer/receiver.

Free on Board means the seller is responsible for the product only until it is loaded on board a shipping a vessel, at which point the buyer is responsible.

With CFR, the seller must arrange and pay all costs to ship the product to a destination port, at which point the buyer becomes responsible.

How to differ CFR and CIF Incoterms?

The difference between these two Incoterms is that under the CIF term, the seller has to ensure the goods, whereas under the CFR Incoterm parties don’t have such a responsibility.

CFR is used when a buyer prefers to rely on its own insurance company, rather than the sellers.

What if the difference between CFR and CNF shipping?

CNF also stands for Cost and Freight, so it is just another name of CFR shipping terms.

Sometimes CNF can be deciphered as Cost, No insurance and Freight (that is where the “N” letter arises).

Sometimes you can also see the following way of writing this name – C&F.

How to differ CFR and CPT shipping terms?

CPT stands for Carriage Paid To.

Per these Incoterms, the seller fulfills its obligation to deliver when it hands over the goods to the carrier at the agreed point of delivery.

CPT can be used when delivery is not intended to be made directly to a vessel.

So, the supplier packs and labels your goods and deliver them to the place where they can be transferred to the carrier.

What is the difference between CFR and FCA Incoterms?

FCA is short for Free Carrier.

This Incoterms contract states that the seller completes the delivery when he places goods into the custody of the selected carrier.  

If there are several carriers, the seller completes the delivery when he transfers products to the first carrier.

So, the only difference here lies in the place where the supplier gives goods to some shippers.

When we are talking about the CFR shipping, the supplier has to place your products on board a certain vessel.

FCA Incoterms implies that the seller has to deliver your goods to the carrier and load them on his transport.

In some cases, such carriers can even pick products from the seller’s warehouse on his own.

Also, the FCA set of terms can be used regardless of the transportation method.

CFR vs EXW: what Incoterms are more beneficial for the buyer?

EXW (Ex-Works) is the comfiest contract for the seller because in this instance he has to do literally nothing.

When you use Ex-Works as a buyer, you have to pick up the goods from the seller’s warehouse and load them on the transport of the carrier.

You decide who’ll be the carrier on your own, and pay all the costs connected with each stage of delivery (i.e., loading/unloading fees, freight costs, import/export customs clearance fees, etc.)

Despite all the hassle, the EXW contract can cost you much lesser than other Incoterms agreements.

Can I use CFR shipping terms for domestic shipping?

Yes, all types of Incoterms can be used for domestic shipments.

However, in the case of CFR rules, the only exception is countries that don’t have a waterway connection inside their borders.

Do CFR shipping terms include the insurance option?

As it was said previously, CFR shipping terms don’t oblige parties to purchase insurance.

So, if you want to secure your goods, you have either to buy insurance separately or use other Incoterms (CIF for example).

How are risks transfer between parties signed under the CFR contract?

We’ve already discussed the basic rules of risk transfer in the CFR contract.

Let’s make it even more clear:

1. Until the goods don’t get across the vessel’s rails, all risks of loss or damage to the products would be on the supplier’s side.
2. When the products are passed on board, technically, all risks are transferred from the seller. However, it doesn’t mean that the buyer has to bear risks – when your goods are in transit, the carrier is the party obliged to keep them safe.
3. Only when the buyer gets his goods in his country, he starts bear with all risks of loss or damage to goods. Remember, that such products have to be in proper shape while being transferred to the buyer.

So, what should you do if you get damaged goods in your country eventually?

First of all, you have to immediately contact your seller and notice him about such a situation.

Because under CFR Incoterms the supplier is obliged to obtain the contract of carriage, he is the party who can require compensation from the carrier.

All you need to do is to provide some kind of evidence to your seller (e.g., photos, inspection results, etc.) 

Who clears import/export customs under CFR shipping terms?

Under the CFR shipping terms, export customs clearance is conducted by the supplier.

He has to place already cleared goods on board of the vessel.

When it comes to export customs clearance, the buyer is the party in charge, so if you don’t have an experience with such procedures, it is better to pick other Incoterms.

Also, if there is a transit through third countries involved, all customs processes would lie on the buyer’s shoulders.

What kind of transport can be used in the case of CFR shipping terms?

CFR Incoterms are applicable only in the case of maritime transport.

What is the legal status of CFR Incoterms?

As we said previously, International Commercial Terms were published by the International Chamber of Commerce (ICC).

They are internationally recognized standards and are used worldwide in international and domestic contracts for the sale of goods.

Despite such recognition, the use of Incoterms is not obligatory.

So, if you and your supplier decide to make business on your own unique terms, it is totally legal.

However, if some party fails to complete its duties per the Incoterms agreement, another party can pursue the failed one in the court. 

If you need furniture for your home or for your business. You have to check the China furniture market.

For home owners, you can save a lot of cost when buying furniture for your home.

For furniture importers, you can find a lot of quality furniture suppliers in the market.

China has a lot of furniture markets like the Foshan furniture market, Suzhou furniture market, etc, this article will help you learn everything about Chinese furniture market, keep reading and start saving money now.

When did China become the leading furniture manufacturer?

Before we begin our journey, let’s dig deeper into the history of the furniture market.

Before China, Italy was the largest worldwide exporter of furniture.

However, in the year 2004, China became the country with the highest number of furniture exports.

Why so?

First of all, the price of manufacturing, as well as for working labor, is much cheaper in China than in Italy.

Secondly, the quality of Chinese products soonly became the same as for Italian furniture.

Many of the leading furniture designers have placed their factories in China, although usually, they avoid talking about it (due to the above-mentioned “Made In China” controversy). 

The huge population of China is also playing a vital role in making this country the biggest exporter of many products, including furniture.

As the standard of living continues to improve in China people are becoming increasingly willing to invest in home decoration.

Consumers’ increasing purchasing power has driven the furniture market to develop in leaps and bounds.

As China’s leading policy of stimulating domestic demand in the years to come, urbanization is bound to drive furniture market growth.

Data from the National Bureau of Statistics show that the urbanization rate in China reached 59.6% in 2018, up 1.1 percentage points over the end of 2017.

In this urbanization process, wage and salary earners, as well as peasant families who have settled in towns and cities, have become major furniture consumer groups.

With the fast growth of domestic sales, China’s furniture exports also show great results.

According to statistics from the General Administration of Customs, exports of China’s furniture and furniture parts amounted to US$53.69 billion in 2018, up 7.6% year-on-year.

What kind of furniture can I find in China?

Needless to say that the Chinese furniture market can offer you any imaginable products.

What is even more important, furniture in China is unique.

For example, you can easily find furniture items that don’t use any nails or glue.

The traditional Chinese furniture makers believe that nails and glue reduce the life of furniture because nails rust and glue can get loose.

They design furniture in such a way that allows all parts to connect with each other to eliminate the use of screws, glue, and nails.

This type of furniture can survive for centuries if it is made of high-quality wood.

You must try these items to truly test the exceptional engineering mentality of Chinese furniture makers.

You will be amazed to see how they connect different parts without leaving any sign of connection.

It seems that only one piece of wood is used to build the entire item.

At present, a wide range of products are available on China’s furniture market and can be mainly classified into the home, hotel and guesthouse, office, and public institution furniture.

# 1. Home furniture (used in the homes of urban residents, including sofas, TV cabinets, tables and chairs, kitchen furniture and bedroom furniture).

# 2. Hotel and guesthouse furniture (dining tables and chairs, sofas as well as guest room furniture for hotels and guesthouses).

# 3. Office furniture (desks, chairs, bookshelves, and cabinets for use in the office).

# 4. Public institution furniture (used in public-sector facilities, such as medical, sports, cultural and educational institutions).

Where can I find the furniture markets in China?

China is a big country and has its local furniture industry based in various locations.

Among others, the Pearl River Delta boasts the highest production of furniture.

It has a thriving furniture market because there is a great availability of natural resources.

Other areas that are known for their wonderful skills in producing high-quality furniture are Shanghai, Shandong, Fujian, Jiangsu, and Zhejiang.

Since Shanghai is the largest metropolitan city in China, it has a huge furniture market, probably the largest in the Yangtze river delta.

The central and western regions of China lack the proper infrastructure in terms of resources and facilities to have a more competitive furniture industry.

This industrial area is still in its early days over there and will take time to develop.

The capital city of China, Beijing, has an amazing flow of resources available for the production of furniture.

All the tools and facilities required for furniture production are also present there, thus more and more furniture manufacturers are interested in having their corporate offices opened in Beijing.

Now let’s have a look at the most popular spots to buy Chinese furniture.

Furniture markets in Guangzhou

# 1. Jin Hai Ma furniture market

Jin Hai Ma is a popular furniture market with a large selection of furniture, accessories, and fittings.

Large exhibition salons and centers from various Chinese manufacturers are represented.

The main focus is on retail and small wholesale, although you can find suppliers for cooperation in large batches of products.

# 2. Pazhou JSWB furniture market

Pazhou Jisheng Weiban is a famous market for quality furniture, with a wide range of fittings, accessories and decorative elements.

A large selection ofm various regions of the country is offered.

Also, in this complex, an annual furniture exhibition is held.

The larger JSWB furniture retail complex is located in the Panyu area.

# 3. Dashi furniture center

Dashi Ji is a popular Chinese market with a wide range of furniture and accessories from well-known manufacturers.

Several large exhibition centers are represented, dozens of shops and retail space are operating in the middle and high price ranges.

This furniture center is mainly focused on the domestic market.

# 4. BoHuang furniture marketplace

BoHuang furniture is a popular trading platform, with exhibition centers and shops from manufacturers from various regions of the country.

Products are presented above average quality in the middle and high price ranges.

Products are sold at retail and in bulk at various scales.

Furniture markets in Foshan

# 1. Furniture center in Foshan Louvre

Louvre is considered to be the largest and most popular furniture exhibition center in the whole of China.

It is located conveniently in Foshan City, only an hour’s drive from Guangzhou.

It offers products of hundreds of well-known brands in the region, with an overview of the exhibition halls and stores.

# 2. Empire furniture market

In total, there are four Empire furniture salons in Foshan.

You will find a large assortment of quality furniture, mainly of the classical style in them.

Here are represented mainly medium and large furniture factories of the middle price category.

# 3. Expo mall international exhibition center

This is the newest and largest furniture center in China, opened in 2013.

On the 9 floors of this center, hundreds of shops are located in which furniture of all kinds and styles is presented.

Here you will find both high-quality upholstered furniture and cabinet furniture, as well as a large selection of finishing materials and lighting fixtures.

# 4. Shunde market

This enormous market is located in the district of Shunde.

It has almost every kind of furniture.

The size of this market can be imagined from the fact that it has furniture from 1500 manufacturers.

This kind of extensive option can cause confusion, therefore, it is better to know the most popular and reliable furniture maker before beginning this journey.

Moreover, you will not be able to check all the shops because this market is 5 Km long with over 20 different streets.

The best thing about this market is that you may find your desired furniture from the very first shop in the market.

This market is also known as Foshan Lecong wholesale furniture market because this market is close to the Lecong town.

# 5. Ajman mall

This mall has shops for fashion accessories, clothes, and electronic devices.

You can also get soft furnishing materials here.

The number of furniture shops in this mall is less as compared to the Foshan Lecong market and Louvre mall but the variety and quality are impeccable.

If you want to buy all types of home décor products including inventive furniture.

Furniture markets in Guangzhou

# 1. Tianping marketplace

Tian Ping Jia is one of the most popular markets in the region in the field of building materials.

A large selection of products from local factories and private manufacturers is presented.

Such products are offered in the middle price range, with retail sales, small and large wholesale.

# 2. Yancheng furniture market

Yancheng decoration materials market is a rather popular market with an abundance of offers from Chinese manufacturers from various regions of the country.

It specializes in a wide range of products, various building materials, equipment, fittings, and accessories in different price segments.

# 3. Yibao marketplace

Yibao is a well-known and one of the largest finishing materials markets operating in the low price segment.

It offers a large assortment of various building materials, hardware, fittings and accessories for construction.

Dozens of stores are presented with products from factories from different regions of the country for the purchase of goods at retail and in bulk at various scales.

# 4. Xinyang furniture market

Xinyang works with a wide range of quality products, offering a large selection of building materials and hardware, accessories, and fittings for construction.

He works with the products of famous and new factories from different regions of the country, specializing in a wide price range.

How big is the Chinese furniture market?

According to a survey, more than 50,000 companies manufacture furniture in China. 

Surprisingly, most of them are small to medium-sized enterprises with no brand name attached to them.

In recent years, some companies have definitely emerged in the furniture producing sector having their own brand identities.

These companies have increased the level of competition in the industry.

A survey conducted by the Hong Kong Trade Development Council (HKTDC) revealed that the small to medium furniture enterprises in China can make a lot of money if even a small percentage of the total Chinese population decides to get rid of its old-fashioned furniture and buy into a more modern aesthetic.

The increase in revenue is the most important indicator that China produces better quality furniture as compared to its competitors.

According to a study, in the year 2010 alone, 60% of the total revenue of China came from its furniture industry by selling locally as well as in the international market.

While metal furniture is now becoming more popular in the West as compared to the wood furniture, China is expected to surpass the west in this field because of its amazing furniture producing skills and no compromise on quality.

Eco-friendly furniture in China

The concept of eco-friendly furniture is quite popular these days.

The Chinese consumers understand its importance and thus are ready to invest in it even though they have to pay a higher price.

Eco-friendly furniture is free from any type of harmful chemicals which may include artificial odor as well as formaldehyde which can be harmful to one’s health.

The Chinese government also cares about the environment a lot.

This is why the Environmental Protection Law was introduced by the government in 2015.

Because of this law, many furniture companies were forced to shut down as their methods were not in lieu of new protectionist policies.

The law was further made clear in December of the same year so that furniture manufacturers are clear about the need to use formaldehyde-free products which can be harmful to their surroundings.

Green is the underlying trend in the furniture industry, with more and more enterprises using water-based paints rather than traditional solvent-based.

Water-based paints refer to coatings that are water-soluble or dispersible.

The biggest difference between water-based and traditional solvent-based paints is that the former requires no addition of hardener or thinner and therefore does not contain toxic substances, such as formaldehyde, benzene or xylene, which makes them safer and more compliant with environmental standards.

Chinese kids’ furniture

Since China follows the two-child policy, many new parents want to give their children the best that they have got.

So, a rise in the demand for kid’s furniture is seen in China.

Parents want their kids to have everything from his own bed to his study table whilst a crib and a bassinet is also needed when a child is small.

A study shows that 72% of Chinese parents want to go for premium furniture for their kids keeping in mind their child’s safety.

The premium furniture is more suitable for kids as it is free from any type of harmful material and is less accident-prone.

So, the parents don’t generally have to worry about sharp edges.

Furthermore, the premium furniture is also available in different styles, colors as well as cartoon and superhero characters which are popular among kids of different age groups.

The demand for children’s furniture is on the rise.

As living standards improve, parents are increasingly willing to buy suitable furniture to create a good environment for their children’s development.

With the full implementation of the two-child policy under the 13th Five-Year Plan (2016-2020), pundits believe that the market has further room for growth.

According to preliminary data from the National Bureau of Statistics, the number of children under 15 reached 250 million in 2018, including 15.23 million newborns.

Among all children’s furniture, wooden furniture takes up the lion’s share, accounting for nearly 90%, followed by plastic furniture.

In the case of children’s furniture, according to the 2018 survey on trends in child-related spending, more than 90% of parents would like to buy desks and chairs, while another 40% planned to buy bunk beds for their children.

Among the many consideration factors in buying children’s furniture, the majority of parents would give priority to safety and eco-friendliness.

Over 77% of parents are worried that non-eco-friendly furniture which generates toxic or hazardous substances would pose health threats.

The popularity of office furniture

China is one of the most popular hubs for economic activities.

Many international brands are investing in China every year.

Many multinationals, as well as domestic corporations, have their offices over here, while many more organizations are also opening every other month.

This is why a huge increase in the demand for office furniture has been observed.

Since deforestation is causing serious problems in China plastic and glass furniture is becoming more popular especially in offices.

Some non-profit organizations are working to create awareness about the benefits of non-wooden furniture in the long run.

Chinese people have a serious awareness of this fact because they are experiencing the adverse effects of deforestation in and around various cities.

Outdoor furniture

Outdoor furniture is increasingly popular in the Chinese market.

Available in ever more variety, outdoor furniture mainly falls under the following categories: 

• beach beds;
• rattan chairs;
• leisure chairs;
• bamboo chairs, and so on.

Among these, rattan chairs and leisure chairs account for a bigger share.

Demand in the outdoor furniture market has been extending from specialized sectors, such as star-grade hotels, restaurants, exclusive clubs, leisure venues, and residential communities, to the home sector, including private gardens, rooftops, and terraces. 

Development in the home sector is gathering momentum.

What kind of popular brands make their furniture in China?

China has become the most popular furniture market even in the West.

The designers rely on it to provide the best quality furniture at a reasonable price.

Even the cloth to be used on various furniture items is also imported from China because of its unmatchable quality.

Shang Xia and Mary Ching are two Chinese companies that have partnered with various Western counterparts for the export of their furniture.

Many designers import furniture from China but sell them with their brand name.

This is the very reason why China is now emerging as a trustworthy furniture market in the Western as well as the international front.

Ironically, the same furniture which is manufactured in Italy or America costs over double in price when compared to one manufactured in China and exported to these very same countries.

China knows how to adopt the Western sense of style in manufacturing and designing its furniture instead of simply conforming to what is produced in Asia and specifically China.

Many American retailers have a keen interest in Chinese furniture. Giants like IKEA and Havertys export furniture from China and sell them in their shops.

Other brands like Ashley Furniture, Rooms to go, Ethan Allan and Raymour & Flanigan are some of the other companies which sell furniture made in China.

Ashley Furniture has even opened some stores in China as well to bring more power to the Chinese consumer.

However, in America, the cost of buying furniture has started to reduce.

The American furniture industry is again improving and the labor price has also decreased as well.

Furthermore, many American companies are now partnering with Italian leather manufacturers for the production of leather furniture.

But still, Chinese furniture is high in demand and will remain so for a long time.

Furniture tour

A furniture tour to China is a new travel trend.

Such programs are made to combine business with pleasure in one trip.

If the desire to travel appears when you are building a house or scooping up cement mess in an apartment, pack your suitcase in China.

Usually, a furniture tour lasts from 5 to 14 days, delivery of purchases is a month and a half, and customs clearance takes 3-10 days.

There are a lot of companies that have been organizing furniture tours to China.

Such companies are located practically in each country, with representative offices in Guangzhou, Foshan, and other huge furniture hubs.

So, even if the temptation to behave dishonestly creeps into the local manufacturer, the experience and authority of the company in the Chinese market will quickly drive these thoughts away.

https://youtu.be/HASeOotcwA4

FAQ

How much cheaper is furniture in China?

A lot of factories in which foreign companies place their orders produce exactly the same furniture, but without a logo: the same hands, the same equipment, the same materials, only for completely different money.

Of course, there is a question of control, and it is very important.

You must either control the production process of your order or take what has already been produced.

In general, furniture in China is always cheaper, especially when we are talking about expensive items.

At what order volumes should I go to China for furniture?

From the point of view of choice, it makes sense to go to China if you are willing to spend at least ten thousand USD. 

With such a budget, you most likely will not save a lot of money, but you can afford to buy better and more interesting things.

If you want to save more money, you need to go with a budget of 50.000 USD.

With a lesser budget, you’ll buy in an ordinary store where discounts will be minimal.

How long does it take for Chinese suppliers to manufacture my furniture?

Whatever your volume is, they will produce it on average per month.

Yes, there are a lot of stories when it can be done with significant delays.

However, this is a matter of control.

You have to initially find our own representative on the spot who will control the Chinese so that they do and send everything on time and in high quality.

Do I need a guide-translator to accompany me to the furniture markets in China?

Firstly, you need to go only with a professional agent, not even with a translator.

In the translator, whoever he is, there is no sense whatsoever.

It is necessary for a person to know these markets.

In addition, the guide needs to know all the points related to shipping and quality control.

It must be a person who has really done this many times and knows all the nuances, tricks and tells you everything with pure honesty.

It is better to pay your guide additionally so that before your arrival he finds needed goods and factories that may interest you and sends you photographs and links.

Because in China it will take you much more time and money.

Does it make sense to look for Chinese factories on the Internet yourself?

It is not recommended, especially for the rookie businessmen.

I doubt that anyone can figure it out on Chinese sites without knowing Chinese.

Secondly, if you are not an expert in this field and will evaluate only the picture, then you will not choose anything correctly.

Because all the directories that the Chinese distribute are beautiful.

Only some Chinese make furniture cool, others good, and others make it not so well.

However, the pictures in the catalogs are the same for everyone.

It would be cool if your guide knew this.

What discounts do the Chinese do?

In general, they can lower the price at 5-10%.

Chinese sellers assume that they already trade cheaply and in bulk.

For example, if you take the same practice in the USA when you buy a lot, then you can save there up to 20%, or even more.

However, in China, there is a huge selection of goods.

If you see high prices, you can continue your search and further find the same quality product, but for a good price.

Who should bargain: a client or a guide?

The client should understand for himself: the guide works for money and bonuses.

This is normal.

We would recommend to immediately establish open relations with your guide and pay him a percentage for the reduced prices.

We believe that a guide should bargain.

But you can name the price that suits you.

Are there some problems with visa, flight, life?

There are no problems to gain a Chinese visa at all.

Just contact a certain company and they will make it to you in a few days.

Please note that if you fly to the south of China, it makes sense to open a visa at 2 intersections in order to travel to Hong Kong and then return back.

There are no problems with the flight either.

In the vast majority of cases, it is long, of course, but you can spend this time watching catalogs that your agent sends you beforehand.

There can be some kind of trouble connected with Chinese food because it is quite specific.

However, in the better part of Chinese cities, you can find restaurants with European food, so it is not a huge issue.

https://youtu.be/yGmmwgaD9e4

If you are importing from China, and want to get a good sourcing agent in China, you are in the right place.

Why?

Because as the leading freight forwarder in China, we know tons of sourcing agents in China, and can help you review the best Chinese sourcing agents.

And in today’s guide, I’ll recommend the best 10 sourcing agent in China to help you source products.

Quick Note:  This is an exclusive list. All the winners were selected based on a certain number of factors and it can’t be modified.

Sourcing Wise.Contact this Sourcing Agent Now!

Sourcing wise is a professional sourcing agent located in Yiwu, I know the founder several years ago, a nice and professional man. If you are looking for a reliable sourcing agent in China, to make your importing from China easier, Sourcing Wise is your best choice.

Hi, I am Max, the founder of SourcingWise. Through ten years of sourcing experience, I established this organization to benefit all global importers worldwide who come to China to trade.

How can we make sourcing from China wiser?

Our local team can source and communicate with selected factories in China more quickly and respond to your questions no later than 8 hours; you can spend more time with your family or expand your business.

We have a 10,000-square-meter warehouse for you as temporary storage, and our quality inspector will do a careful quality inspection before shipping the goods out. These two services are free, saving additional costs each time;

We will sign a Chinese contract with the factory, add law protection to your order to ensure your legal right under Chinese law; simultaneously, your information is very sacred to us; it will not be leaked or sold to anyone.

We know ruthless can make the business grow fast in a short period, but we know there’s a better way; we believe business can grow with a conscience and succeed with a soul.

SouringWise — Help you sourcing wiser in China!

Jing Sourcing Contact this Sourcing Agent Now!

Jingsourcing is a very professional sourcing agent located in Yiwu, China. They aim to help small businesses import products from China with good price & quality when facing 1,000+ suppliers for the same product in Alibaba.

They have around 40 professional local Chinese employees to handle your projects. So if you are looking for the sourcing agent in Yiwu, Jing will definitely help you out.

The Founder Words to You

Hi, I’m Jing, the founder of Jingsourcing.com. I started the company in 2015 from just myself in the apartment, and grown up to 40+ staffs in 3 years.

We like helping small to medium business or even new importers source good price and quality products in China, helping them avoid all kinds potential importing risks. Our service is very friendly to them, which is $100 minimum charge.

Our sourcing service is free, and you don’t need to pay anything until purchasing what you like. 5%-10% is our service rate, and it includes services like product sourcing, production management, quality inspection, shipping arrangement and product photography.

Unlike inspection company that can only send you inspection report, we help you negotiate with suppliers on your behalf, and fix quality problem before products leaving China. You will never feel so secure when import from China through us.

In the past 3 years, we’ve supported 1,500+ American Amazon sellers build their ecommerce business, and also helped a European company grow from 0.5 to 4 million USD annual import amount. I always believe that we make you succeed, then we will succeed.

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Meeno Group Contact this Sourcing Agent Now!

Meeno Group is another professional sourcing agent located in Yiwu, China. Their founder Max is a very nice man and he does everything super carefully.

Meeno Group provides complete sourcing service in China,  their services include and not limited to: Quality inspection, sourcing products in China, warehouse storage, customs clearance and ship management.

The Founder Words to You:

Hey, this is Max, the founder of Meeno Group. We provide a complete sourcing service in China.

What’s our difference with others?

I believe it’s radical transparency. The supplier’s information, commission rate, shipping method, all information you need is public when you cooperate with us.

In case you are still looking for a trustworthy agent to save time and cost, contact us today!

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Sourcingbro Contact this Sourcing Agent Now!

If you are looking for sourcing agent in Shenzhen China, then you can consider Sourcingbro. Their founder Jack, has vast experience in the Shenzhen marketing. Their sourcing products types from handmade gifts to electronics.

The Founder Words to You:

“cross-culture” is my passion and that propelled me to start my career as an International Trade Specialist since 2012.

Today, 6 years later, I am among the most respected and most experienced sourcing business providers in China.

During my stint and experience in the industry, I saw that overseas buyers still struggle to have a hassle free business transaction in China and I decided to devise certain solutions that they needed. This is what gave rise to my business which I named Sourcing bro.

If you are ready to import from China, get in touch with us and discover the growth that we can bring to your business.

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 LazPanda Contact this Sourcing Agent Now!

Lazpanda is another good sourcing agent located in Shenzhen, China. They have a young sourcing team to help their clients source different products in China.

If you are looking for a professional sourcing agent in Shenzhen, you can try them.

The Founder Words to You:

For most business importers, China is a Gold Mine. You can find hot products you wanted and make you rich.

When people source products from China, but they’re not familiar with Chinese, like the story “Blind men and an elephant”, they will easily get scammed.

The best way to get rid of scam is hiring a trusted partner Chinese sourcing agent.

That’s Lazpanda’s job.

We help people choose the right suppliers, decrease cost, and reduce the risk when you “mining” from China.

I’m Keen, founder of Lazpanda, 5 years experience in Electronic markets. If you want some messages about Shenzhen Huqiangbei or Electronic industry, lazpanda is your right choice.

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Foshan Sourcing Contact this Sourcing Agent Now!

Ok, just as the name, if you want to find a sourcing agent in Guangzhou, you can contact Foshan Sourcing.

The founder Kensen has over 10 years of sourcing experience in China, he and his team are very professional on the products sourcing.

Their team come from different cities where are famous for the industrial clusters such as Chenghai (toys) , Chaoyang (under wares), Zhongshan (lights), Foshan (tiles, furniture, windows and doors), Chaozhou (sanitary wares) and so on.

The Founder Words to You:

Unlike other China based companies, Foshan Sourcing is based in the Foshan if you want to source building metirails from China.

We have a stable network of more than 250 quality suppliers from industries of furniture,tile,light,sanitary ware , who are all verified and audited by the company.

With services like factory audits, inspection, price verification, and compliance assurance, you don’t have to worry about the quality of the products while working with Foshan Sourcing.

Foshan Sourcing also promises to get you a better price with a dedicated negotiation team and access to a network of ground level factories that offer competitive prices but offer the same quality products as any other factory.

If you’re looking for a sourcing company that offers a full range of sourcing services for house buidling , hotel project,building metarial agent, Foshan sourcing is the right option.

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B2C Sourcing Contact this Sourcing Agent Now!

If you are looking for a Ningbo Sourcing agent, then B2C sourcing is right for you.

Listen to what the founder said:

Hi, this is Sheng from B2C Sourcing. I’m a product development specialist with 10 years of experience in both product development and product sourcing, I have developed products for major clients such as Disney, Speck Products, Philips Lumec, and other great companies during my career.

In 2015, I founded B2C Sourcing Ltd, a sourcing company focused on products sourcing for small business owners like Amazon sellers,eBay sellers, and other offline business owners.

Colleagues know me as a professional product development specialist who can always be trusted, But I know that the client’s business comes first, and I never try to impose my ideas on others. Instead, I spend a lot of time understanding the business and products before developing.

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Leeline Sourcing Contact this Sourcing Agent Now!

With 10 Years of Experience in China Sourcing Agent Business, LeelineSourcing are Committed to Sourcing High Quality Products With a Best Possible Cost via a Complete Transparent Process!

We offer you Amazon seller services, from product procurement, to brand labeling, quality inspection, packaging services, product photographing and also shipping of products to FBA warehouses.

Just tell us what you need, and we will help ship your products to your warehouse at lightning speed.

The Founder Words for You:

Hi, this is Sharline from Leeline Sourcing, ten years ago I enter in the field of international trade, I am familiar with all process of purchasing from China and Shipping worldwide, I met so many customers which meet Variety problems during sourcing products in China:

• Expensive charge when flying to China for buying
• Cost much time to contact different suppliers at the same time
• Quality can’t be guaranteed
• Goods can’t be delivered as promised
• Sometimes being defrauded and suffer great losses

For the above bad buying experience, they need someone who can trust to help control everything in China.

In the beginning, Sharline help customers to source as part-time job.

As time goes on, more and more clients and clients’ friends ask her for help.

Considering that there was not enough time to take care of all orders, she decided to build a sourcing company, which mainly help oversea clients source products in China.

We leeline sourcing will use our 10 years of sourcing experiece to help you negotiate best prices with right suppliers and we have experienced FBA Sourcing China Company With local office in china, with many years of experience with sourcing, preparing and shipping products to Amazon FBA warehouses.

We serve Professional Amazon sellers all around the world with A – Z service and more FBA Sourcing China services.

Now our company is growing like a tree. More and more excellent talents join us . Our service is known by foreign businessmen increasingly.

Our Chinese buying experience blogs get a large number of subscribes and are shared in SNS such as facebook,linkedin, twitter and so on.

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Import Dojo Contact this Sourcing Agent Now!

Manuel is not Chinese, his company Importdojo in Hongkong, China, and he is very professional when it comes to sourcing from China. So I add him to my list as a special one.

Manuel Becvar is the founder of ImportDojo.com. A educational blog on sourcing from China and selling on eCommerce sites such as Amazon. Apart from educational blogs, ImportDojo also offers online courses that teach you on how to source in China and import to your home country. On top of that ImportDojo also offers sourcing services within China.

Manuel’s professional career started in 1998 when he worked for Austria’s biggest DIY retailer (bauMax). He moved to Hong Kong in 2005 to work for one of the biggest Sourcing Offices in Hong Kong with a staff over 200 people. For more than 12 years he worked with the biggest retailers in the world on developing, sourcing and finding new products for them. These retailers included: Metro, Rewe, OBI, Carrefour, Tesco, WalMart, Amazon, Auchan, Lowes, Sears, Homedepot and many others.

Manuel speaks publicly at large events within Asia, Europe and North America. You can find a selection of interviews, podcast & magazines contributions on importdojo.com.

Apart from running ImportDojo.com Manuel also has his own Amazon and eCommerce business selling well over 1Mio USD per year.

 Riwick Contact this Sourcing Agent Now!

Riwick is a professional sourcing agent located in Longjiang Town, Foshan City.

They are expert when it comes to sourcing furniture from China.

So your home or your business needs to import furniture from China, you can contact them.

The Founder Words to You:

Hello, everybody. Foshan is famous for its furniture, sanitary industry, ceramic, deco.etc. We are experienced and professional in handling household items. You can get the best service from us.

As long as you tell us the style and requirements you want, you can choose the products you like in these large furniture markets. Not only can you choose from a few big-box stores, but you can also go to the showroom in the factory. In this way, you will get the most reasonable price from the supplier.
You will enjoy the considerate service of pick up, translation, quality inspection, shipment, and billing, etc. From the purchase of household goods to shipping the whole process, there is our intimate service, you just enjoy shopping fun.

If you want to import household items, we are ready to be your best agent. Select us, you are worth it.”

Extra Recommend: If you want to import hotel motel furniture from China, this hotel furniture supplier you can try.

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FAQ Guide on How to Find the Right Sourcing Agent from China

Importing from China isn’t easy work for a lot of importers, and Chinese local sourcing agents will help you out.

Of course, the must thing is: You choose the “right”  buying agent in China.

and below guide, you will find every question you may have about China sourcing agents.

Q: Who Need Sourcing Agent in China?

If you are a startup company, you need to find a Chinese sourcing agent.

You are going to start up your company, and you are planning to import from China. Because you don’t know the Chinese market, and you don’t know how to find a good supplier on platforms like Alibaba or madeinchina.

Then you need to find a sourcing agent in China, they will help you handle everything in China and teach you how to source product from China.

A good sourcing agent will really help you a lot.

Here is a good post on China Manufacturing: To Sourcing Agent or not to Sourcing Agent

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Q: What Kinds of Products Can a Sourcing Agent Help to Source

Generally speaking, products like apparel, Jewelry, toys, Electronics, Furniture, Kitchenware, Hardware & Tools, Home & Garden etc, you can find a sourcing agent to help you importing from China.

When you visit a sourcing agent website, you will find the products they are expert in, for example, below is the product Meeno Group can source for you:

But if you import industry products like pharmaceutical machines, duplex strainers, copper nickel pipe, pool enclosure, then the most sourcing agent cannot help you. Because they are too professional and very few agents know about the products.

You need to search on google first.

For example, you need to source the pharmaceutical equipment in China, then google ” pharmaceutical equipment in China”, then all done.

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Q: What Kinds of Sevice You can Get from Chinese Sourcing Agent

• Help you find a read factory in China who manufacture your products

Find a real manufacturer is really a hard work if you are not local Chinese, the sourcing agent know where to find the manufacturer in different cities of China.

And if you want to try yourself, here is 17 manufacturing cities for different products in China . For example , you can find wedding dress supplier in Huqiu, toy manufacturer in Shantou etc.

• Manage production of your products

A really good Chinese sourcing agent will help you manage the production very well. They will go to the factory very often to check every process of the product manufacturing.

Another important thing, both your sourcing agent and the factory boss say Chinese, their comunication will be much easier than you.

• Inspect the quality of your products

Quality is key. Your sourcing agent will be like your worker in the factory, they inspect quality of every piece of product.

This will make you enjoy your family and life at home, and at the same time, you have a trusted guy work for you.

• Arrange shipment of your products

When your goods are ready, your sourcing agent will contact the freight forwarder to ship your goods. As the professional freight forwarder in China, Tj chinafreight actually worked with a lot of sourcing agent in China.

Based on your schedule, you choose the shipping type, by sea , by air or by railway.

Then you stay at home and wait for your goods shipping to your warehouse(under the incoterm DDU).

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Q: What is the Sourcing Agent Commission Rate and Fee Structure

Most sourcing agents in China charge the commission rate on every order. Maybe 1% to 5% depending on your order amount.

Some agents also charge yearly commission rate. Like $100 to $1000 every year.

There are also service fee for customizing your product & packaging, follow up producing, inspect quality, and arrange the shipping.

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Q: How to Find a Perfect Sourcing Agent in China

It will be a disaster if you find the wrong sourcing agent in China.

Money may not a big thing, but you have to find better agent again, and your order delayed.

so here I suggest you some practical tips when looking for a buying agent for your business.

• Ask for the agent’s website and check every detail on the web

The website is very important for any online business.

Check your agent’s website, and check their design, their word, about their company, the founder story.

when you can feel that the agent does perfect in every detail of their website, the web design, copyrighting, image quality , blog article etc. Then this is the right agent for you.

They may care about your business just like their own website.

• Ask a video chat with your agent

video chat is the best way to know your sourcing agent directly. If they are willing to chat on video, then at least show three things:

• They are confident
• Their English is not bad, so you will not have problems on communication in future
• They care about you

In another hand, during the video chat, you can see your agent directly.

Normally we understand a person with the first face, if you find this is a very man, and then, listen to him, talk about their business, their company, you will really get to know the agent very quickly.

• Test your agent with a small order

Never give very big order at first. You’d better give them small order, but with very complicated things.

For example, you need one ski goggle sample.

But you need very high quality, optical class 1, the ski goggle needs very good anti-fog performance, anti-scratch performance, the goggle need to change color when in the sun.

Give your requirement, and then you see, how long they help you find the product, how they handle every step, every detail, how they communicated with you.

All these will not cost you over $ 300, but with this, you know your sourcing agent is a good fit for you.

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Q: How much can I Save by Sourcing from China?

The amount of money you can save when sourcing for your goods from China will depend on many factors.

First, I will advise you not go it alone – get a reliable sourcing agent in China.

They know how to negotiate with the suppliers and factories.

Hence, you stand of getting better prices.

Second, even if you hire a Chinese sourcing agent, you need to follow these simple rules:

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Q: Get Sourcing Agent from Right City

Chinese manufacturing cities are divided into 5 main manufacturing zones.

You can have a quick look at the table below:

So, you must get your sourcing agent from the right manufacturing city.

Otherwise, you may end up spending a lot of money on transport.

· Get Quotes from different Supplier or Factories

Even if you hire a souring agent in China, comparing prices is still important.

This way, you will choose a supplier with the best market prices.

· Quality is key – Get a third Party to Inspect Goods

I will not lie to you:

Buying substandard products at a low price is a waste of time and money.

You may end up losing your entire investment.

And finally, you must have accurate specifications for your products.

You can go with your designs and specifications for custom products.

By the way, in case you want to learn more about this, I have some links here for you:

• Best Ways to Source Wholesale Products from China
• Five Secrets to Sourcing Products in China

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Q: Is finding a Chinese Sourcing Company Online Enough? And, can I trust them?

No.

Of course I know searching for a Chinese sourcing company will begin by doing a random search on the internet.

Obviously, by the end of your search, you will get a few sourcing agents.

Take for example, when you use “Chinese sourcing company”, “Chinese sourcing agents” or “Sourcing agents in China”, there will be a list of some agents or companies.

Look at this:

Here is the truth:

A random online search should only give you a hint of the name of the Chinese sourcing companies.

From here, you must do further research to establish their authenticity and credibility.

You must not trust them simply because they come first during your random search.

Once you get the name of the company, go ahead to further search to establish its reputation.

Besides, you need to know whether it can supply the products you need.

Just in case you want to learn more on these, here are some useful links:

• Sourcing for Goods & Suppliers in China (Guide)
• Finding a Professional Sourcing Agent in China

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Q: What is the Minimum Order Quantity (MOQ) a Sourcing Agent in China Can Process?

Well, this will depend on the sourcing agent in China.

However, quite a number of Chinese sourcing agents allow small minimum order quantity.

Take for example, Meeno Group allows for as low as $500 MOQ.

On the other hand, Jing Sourcing has their MOQ as $1000.

Of course, this refers to the value of the product in monetary terms, which you must purchase.

On the other hand, there are Chinese sourcing agents that use the number of items you want to buy as the MOQ.

For you to carry out any type of export procedures, having necessary export documents is a must for smooth operations.

If you are an amateur in the exportation industry don’t worry as I am about to explain to you everything you need to know surrounding these documents.

Keep reading.

What are Export Documents?

Just as the name implies, export documents are legal paperwork that is needed whenever you are exporting goods from one country to the other.

It does matter whether you’re importing from China or any other country.

Your documents must conform to the stipulated rules and regulations.

How Export Documents compare to Import Documents

Before knowing how export documents compare to import documents, you need to be knowledgeable about the difference between imports and exports.http://www.Tj chinafreightchina.com/export-documents/%MCEPASTEBIN%http://www.Tj chinafreightchina.com/export-documents/%MCEPASTEBIN%

By so doing it would be much easier to comprehend how the two types of documents compare.

Exporting can be defined as the selling of goods and services to another country while importing refers to purchasing goods or services from a foreign country.

Now, export documents mainly deal with goods and services that are sold to a foreign country.

On the other hand, import documents focus on goods and services being brought into a state from a foreign country.

Types of Export Documents

There are various types of export documents not excluding;

• Export license
• Bill of lading
• Bill of exchange
• Certificate of manufacturer
• Commercial invoice
• Insurance certificate
• Inspection certificate
• Export packing list
• Pro forma invoice
• Certificate of origin
• Export letter of credit

1) Export License

An export license is one of the most important export documents that you need to acquire before commencing your exportation process.

Export license

An export license refers to a document issued by the government to the exporter allowing him or her to export specific goods or services to another country.

Why do you need an Export License?

Not only does an export license allow for the smooth operation of export activities but it also accelerates the general exportation process.

Without an export license, you will experience several difficulties which are likely to lead to some delays.

To avoid all such hullabaloo make sure it’s one of the topmost documents to factor in whenever you are planning to export any type of goods or services.

Who issues an Export License?

An export license is issued by the government to the exporter.

How to Obtain an Export License

Export licensing might sound like such a complex task while it’s not.

First, you need to apply for an export license.

Start by determining whether the goods in question are legally allowed for exportation.

Thereafter determining whether they meet the required guidelines and regulations.

Also, you need to define who has jurisdiction over your goods.

Thereafter, classify your items based on the export control classification number which determines whether or not your goods need special controls.

After classifying your goods, you can now decide whether you need an export license or not depending on the control reasons for the goods and the country of destination.

Above all you need to know Import and Export License framework in China.

Contents of an Export License

An export license includes details such as the name of the shipper, the type of goods to be exported, and the dates of exportation.

2) Bill of Lading

A bill of lading refers to a document that outlines the details of the goods being transported for the efficient processing of the freight shipment and invoice.

Why you need Bill of Lading

In simple terms, a bill of lading serves as the receipt for your goods.

Not only does a bill of lading act as evidence of the contract between the carrier and the shipper.

But it is also considered a document that verifies ownership of goods.

Who issues a Bill of Lading?

A bill of lading is normally handed over to the shipper by the carrier.

How to obtain a Bill of Lading

Obtaining a bill of lading shouldn’t be much of a hassle.

Since it’s granted by the carrier, you have to make sure that you request it before beginning any exportation processes.

Contents of a Bill of Lading

Sample bill of lading

As compared to the export license, a bill of lading features more content not excluding;

• The shipper’s name and address
• Shipping bill number and date
• The name as well as the logo of the shipping line
• Name and the port of loading
• The number as well as the name of the vessel.
• Amount of freights paid or payable.
• Number of packages and containers
• Name of the port of loading
• Signature of the chief officer
• Name of the delivery location as well as the port of discharge.
• Name and number of the vessel
• Description of the container and packaging
• Seal number of the container
• Details on the number of goods being exported

3) Bill of Exchange

A bill of exchange refers to a written order to a party (the drawer) requesting payment of a specific sum of money for goods to the other party (the drawee).

Why you need Bill of Exchange

A bill of exchange serves as a proper way of requesting a certain amount of payment of goods.

To add on that, a bill of exchange allows you to legally recover the amount of money in case the drawee fails to pay the amount.

Who issues a Bill of Exchange?

A bill of exchange is prepared and issued by the drawer who as well signs it.

How to obtain a Bill of Exchange

An endorsee or drawee can obtain a bill of exchange from the drawer as it is prepared and signed by the drawer.

Contents of a Bill of Exchange

Sample bill of exchange

The features found in a bill of exchange are not limited to;

• Terms of payment
• The amount to be paid
• The date of payment
• The place of payment
• The interested to be paid
• The maturity date of the bill
• A stamp is also included

4) Certificate of Manufacture

A certificate of manufacture is a document that indicates completion of goods ordered by the buyer certifying that the goods are ready and all risks are now borne by the buyer.

Why you need a Certificate of Manufacture

A certificate of manufacture gives more detailed information on the processing of the products and all the general details of the product in question.

Who issues a Certificate of Manufacture?

The manufacturer is responsible for preparing and issuing the certificate to the buyer.

How to obtain a Certificate of Manufacture

Obtaining a certificate of manufacture is quite easy.

All you have to do is requesting one from your manufacturer.

Contents of Certificate of Manufacture

A certificate of manufacture is expected to highlight the following contents;

Certificate of manufacture

• Information about the product together with the number of outputs
• Details of the products (number, type, and product quality)
• The date when the manufacturer received the merchandise
• The amount of waste
• Production date
• If the waste could be important in production, the document should indicate its market value.
• The merchandise value at the factory
• Total amounts of the applicable duties and the numbers for import entry.

5) Commercial Invoice

A commercial invoice serves as a proof of sale between the seller and the buyer giving details surrounding the price, quantity as well as the value of the goods being sold.

Why you need a Commercial Invoice

A commercial invoice not only comes in handy when accounting for the goods but also when claiming incentives.

In addition to that, a commercial invoice will be needed when collecting or negotiating documents through the bank.

In a nutshell, here is a quick preview of the importance of a commercial invoice;

• Used for accuracy check
• It serves as an assurance for payment
• Helps in record keeping
• Serves as a piece of evidence for sales
• Serves as a notice for due payments

Who issues a Commercial Invoice?

A commercial invoice is issued by the seller (exporter) to the buyer (importer).

How to obtain a Commercial Invoice

The seller is responsible for creating the invoice and availing it to the buyer.

A commercial invoice is created through the following steps;

• Download a template for a commercial invoice
• Fill in all the details
• Allocate an invoice number
• Include the terms of sale together with the customer reference number
• Highlight the terms of payment and the currency used
• Include the method of shipment together with the quantity and the unit of measure of the merchandise.
• Outline the price and value of the shipment
• If the shipment includes multiple boxes, record the markings on the boxes.

Contents of a Commercial Invoice

Sample commercial invoice

The commercial invoice should have the following details;

• Invoice number
• Order number
• The invoice date
• Name and contact details of the exporter
• A clear description of the goods
• The number of goods as well as pacing details.
• The total price of the goods
• The currency used during transactions
• Delivery date
• The incoterms applicable
• The freight and insurance charges
• Exporters bank details
• Details on the country of origin of the goods and expected country of destination.
• Freight details (port of loading and offloading)
• The validity of the commercial invoice

6) Insurance Certificate

An insurance certificate is meant to protect the goods against loss or damage while in transit.

In simpler terms, it provides information on the insurance coverage of the goods.

Why you need an Insurance Certificate

Insurance certificate is important in the following ways;

• An insurance certificate secures your goods from loss or damage
• Not only does insurance offer peace of mind but it also ensure business stability in case of any inconveniences.

Who issues an Insurance Certificate?

An insurance certificate is issued by an insurance company or an agent verifying the issuance of a policy for a risk.

How to obtain an Insurance Certificate

Before getting a certificate of insurance you need to have general liability insurance together with any other type of insurance required by the law.

After acquiring one, your insurance company should be in a good position to direct you further on the steps to take for you to finally have your certificate of insurance.

Remember, you shouldn’t be charged for this and if you do then you better consider getting a new insurance company or agent.

Contents of an Insurance Certificate

Every certificate of insurance must include the following details;

Insurance policy

• The name insured
• Types of coverage
• Limits of coverage
• The Policy number
• The insurance company
• The name insured
• The policy effective date

7) Inspection Certificate

An inspection certificate refers to a document that certifies that the goods in question have been passed through inspection and adhere to the terms of the sales contract.

Why you need an Inspection Certificate

An inspection certificate not only enhances your customer’s confidence but also reduces rejection losses.

In addition to that, an inspection certificate allows you to identify potential hazards.

Who issues an Inspection Certificate?

An inspection certificate is normally issued by an independent inspection company after confirming whether or not the goods meet the stated terms as outlined in the sales contract.

How to obtain an Inspection Certificate

A certificate of inspection can easily be obtained from an independent inspection company.

Contents of an Inspection Certificate

Every inspection certificate should include the following details.

Sample export inspection certificate

• Ate of inspection
• Name of the seller
• Insurance policy number
• Place of inspection
• Place as well as the date of issue
• Gross weight
• Country of origin
• Number of the pro forma invoice and date
• Goods description
• The name as well as the signature of the person who has been authorized.
• Port of discharge
• The type of packing as well as the number of packages

8) Export Packing List

Just as the name implies, an export packing list refers to a document that lists all the packaging details of a shipment.

Why you need an Export Packing List

An export packing list is crucial for both the ultimate consignee and the freight forwarder.

The following are some of its importance in international trade.

• An export list is used when acquiring other export documents such as an inland bill of lading.
• It highlights specifics needed for a certificate of origin.
• An export packing list also plays a role when booking international carriers.
• It backs up an insurance claim in case of damage or loss of goods while in transit.
• Not only does an export packing list support issuance of Material safety data sheet but also reimbursement under a letter of credit.

Who issues an Export Packing List?

An export packing list is normally issued by the seller who sends it to the location of the goods so that it can be used in the calculation of the goods.

How to obtain an Export Packing List

You can obtain an export packing list from the seller who creates the list from the template available.

Contents of an Export Packing List

An export packing list should feature the following details;

Export packing list

• The exporter’s details
• Reference number of the shipment
• The country of destination
• The invoice number
• Details of the consignee
• Port of loading
• The port of offloading
• Physical description of the shipment including the eight and dimensions.
• The terms of payment and delivery of the shipment
• An authorized signature that includes a date and has a stamp.
• The purchase order number

9) Pro Forma Invoice

A pro forma invoice is an estimated invoice that a seller sends to the buyer highlighting all the goods details before they are delivered.

Why you need a Pro Forma Invoice

A pro forma invoice not only helps in calculating the cost estimate of your shipment but also facilitates a smooth process when your goods are passing through customs.

Who issues a Pro Forma Invoice?

The seller is responsible for issuing of a pro forma invoice before the goods or shipment is delivered.

How to obtain a Pro Forma Invoice

To obtain a pro forma invoice you only have to request from your seller. The seller creates the pro forma invoice using excel or word.

However, in recent times, most choose to use invoicing software as they are not only considered to be more accurate but also efficient.

Contents of a Pro Forma Invoice

Every pro forma invoice should highlight the following details;

Pro forma invoice sample

• The buyer’s and seller’s contact details
• The date of issue
• Terms of payment
• The reference number
• All taxes including VAT
• Total amount due
• Full description of the goods
• Exporters banking details
• The incoterms applicable
• Country of origin
• The validity of the pro forma invoice
• The unit pricing
• Signature and the title

10) Certificate of Origin

A certificate of origin is an international trade document that declares that goods have been purely produced or manufactured and obtained from a certain country of origin.

Why you need a Certificate of Origin

A certificate of origin has proved to be of great importance during import clearance.

In addition to that, it increases the competitiveness of exporters with others from different countries.

Who issues a Certificate of Origin?

The country’s or territory’s chamber of commerce is the body responsible for the issuance of a certificate of origin.

How to obtain a Certificate of Origin

Each and every country has a chamber of commerce that offers a certificate of origin.

For you to obtain a certificate of origin you have to contact your local chamber of commerce and they will guide you on how to get your certificate.

Alternatively, some chambers choose to send a digital certificate of origin online.

Contents of a Certificate of Origin

A certificate of origin should have the following details included;

Certificate of origin

• Exporter’s contact details as well as address
• The departure date
• Port of loading and offloading
• The destination country
• Consignee’s contact and address details
• The certificate number
• Exporter’s reference
• Name of the vessel as well as the voyage number.
• Products details
• Signature and name of the legal representatives.

11) Export Letter of Credit

An export letter of credit refers to a document that states that the buyer’s bank is responsible for the payment provided the terms stipulated in the letter of credit are met.

Why you need an Export Letter of Credit

An export letter of credit is important in a number of ways not excluding;

• It minimizes the supplier’s risk
• Provides security to the exporter
• It simplifies settlement of transaction disputes.
• An export letter of credit assures the exporter that money will be received on time.
• In addition, there’s the assurance to receive the full amount of money

Who issues an Export Letter of Credit?

Export letters of credit are issued by banks on behalf of their customers.

How to obtain an Export Letter of Credit

Acquiring an export letter of credit is primarily done through your bank.

After contacting your bank, most probably you might also need to liaise with international trade.

Thereafter you will be advised accordingly on how you could obtain your document.

Contents of an Export Letter of Credit

The following details are included in an export letter of credit;

Letter of credit

• The issuing bank
• The applicant contact details and address
• The confirming bank
• Total amount due and currency
• The beneficiary
• Date of expiry
• Place of expiration
• Type of letter of credit

Now, once you have all these export documents, it will be easy to go ahead with the transactions.

At Tj chinafreight, we make the entire process easy and simple by handling all the paperwork for you.

Contact us now for all you importing from China to global destination needs.

When importing from China, BSCI Audit is a critical aspect.

This guide will take you through all the critical aspects of the BSCI Audit.

Take a look:

What is a BSCI Audit?

BSCI Audit

Business social compliance initiative is an audit system that deals with monitoring and assessing the standards of your work place.

This audit will ensure that your company ensures proper responsibility not just within but also in the supply chain.

It seeks to ensure that the suppliers providing you with the necessary raw materials are treating their employees legally and ethically.

Why Does BSCI Audit Exist?

In the context of globalization, you probably outsource different raw materials from different suppliers all over the world.

You have to ensure that the companies you are in business with have proper codes of conduct of treating their employees.

In that sense, it is therefore, very important that you perform BSCI audit because of the following reasons.

• Show that your company has a special commitment to ethical sourcing of raw materials
• Ensure that the working conditions within your supply chain is fair and transparent
• Strengthens the CSR credentials of your brand
• As a mode of complying with the statutory requirements such as legislations on modern slavery
• Establishment of long-lasting business relationship between your buyers and your suppliers.

What is the Significance of Conducting a BSCI Audit?

With proper business social compliance initiative, you will be sure of experiencing great benefits.

Some of the benefits that you will experience by conducting BSCI audit on your company include:

· Proper Treatment of Workers

BSCI audits will ensure that you treat the workers within your company in the right manner according to the law.

Apart from that, it will also ensure that the companies you are in business with are also doing the same.

This includes certain factors such as fair renumeration, freedom of association, safety and health prohibitions of child labor.

· Enjoy Good Reputation

Your company will have the best reputation among others especially if you have the best mode of treating your employees.

Additionally, you will be avoiding negative publicity that would have a great impact on your company.

· Enhance Your Reputation

Your company’s reputation will also be on a higher level as people will have great trust with your company.

· Better Relationship with Suppliers

Your relationship with your suppliers will also improve a great deal as they will have vested trust in your business ethics.

· Ease of Certification

You will also enjoy a smooth ride to the point where you will receive the SA800 certification for your company.

What is the Process of Conducting a BSCI Audit?

There are six major steps that you need to follow especially when you are conducting a BSCI Audit on a company.

Here is a step by step procedure that you need to follow when conducting a BSCI Audit.

Step One: Application for the Audit

First, you will have to fill an application to the BSCI auditing firm to show your interest in conducting an audit.

You will apply via the auditing firm’s platform and this must be approved by the BSCI team responsible for the supplier.

Step Two: Preparation for the Audit

After approving the application, the next step is to prepare yourself for the auditing process.

In this case, the supply under audit will have to sign a document dictating the “Terms of Implementation”.

By signing the document, the supplier will be acknowledging the principles and values of the BSCI code of conduct.

Apart from that, the supplier will also agree to an all access auditing of the company.

Some of the things that the supplier will be agreeing to include:

i. Confidential interviews with the supplier’s employees.
ii. Making copies of necessary documents
iii. Taking of pictures of the production facility
iv. Documentation of the auditing results.

Before the auditing begins, your employees will have to fill a few questionnaires to give the auditors a head start.

It will also help the auditors to plan and share the plan with the supplier so as to prepare the necessary documents.

Step Three: Performing the Audit on Site

During the auditing process, the auditors will check if the suppliers are adhering to the BSCI code of conduct.

You must also know that the auditors have the freedom to announce, semi-announce and even not announce the audit day.

In many cases, semi-announcements are carried out and then done within a month’s notice without exact date notifications.

It will often begin with a meeting where a clear guideline on the auditing plan is given out.

After that, the auditors will follow the plan and conduct the audit accordingly and ends with closing meetings.

BSCI Code of conduct

Step Four: Giving the Audit Results

After the audit, the results are given out with absolute truth which is countersigned by the auditors and suppliers.

In the results, the company will get an auditing grade ranging from an A for Outstanding to an E for unacceptable.

You will also note that the results are recorded in the BSCI platform where the supplier and the customers can view.

Step Five: Follow Up Audit

This audit is not compulsory but you can perform it if there is a need for you to perform it.

You will perform a follow up audit only if some of the BSCI code of conduct requirements were not followed.

As a supplier, you will have to make the right adjustments as soon as possible pending further verification on site.

The final results will also appear in the BSCI platform for the supplier and the customers to view.

Step Six: Renewal Audit

You will have the audit report validated for just two years meaning you have to perform another audit.

Implying that you will perform audits on your firm after every two years.

Is there a BSCI Audit Code of Conduct that You Will Follow?

Yes, there is a BSCI code of conduct that you need to follow when conducting business in your company.

The code of conduct that you need to follow in your business dictates that:

1. Compliance with the Law Set by the Government

Your business ethics should follow on the set rules and regulations that will govern proper operations within the country.

Implying that, you have to follow the law of the government to the letter for you to operate successfully.

2. Allowing the Freedom of Assembly as well as Collective Bargaining Rights

You must also give total freedom to your employees to enjoy their rights while working under your company.

This means that your employees must have the freedom of coming together in a bid to vote in their representatives.

3. Prohibition of Discrimination

At your work place, it is important that you have strict rules that will combat any form of discrimination on your employees.

In reference to your rights, you must never discriminate on people based on their differences.

4. Compliance to Minimum Wages

You must also have strict compliance to the legally documented minimal wages including basic means of employee subsistence.

5. Adherence to Proper Working Hours

It is also very important to set the normal working hours to a maximum of 48 hours in a week.

On the same breath, you should try and minimize or limit overtime to a great extent.

6. Prohibit Child Labor

You must also avoid using children as a source of labor within your company in compliance to the international labor laws.

7. Health and Safety Rules at the Workplace

You must have clear rules on safety as well as health at your place of work.

These rules will dictate the code of conduct that you will follow to keep every employee safe and healthy.

8. Prohibit Forced Labor

Your organization must also prohibit forced labor on your employees and eliminate crude disciplinary measures.

9. Compliance with Waste Requirements

Your company must also have proper guidelines on how you will manage the waste that your company produces.

The set guidelines should comply to the minimum requirements for waste management, waste water treatment as well as emissions.

10. Proper Handling of Hazardous Substances

The company must have the most appropriate mode of handling hazardous substances such as chemicals without causing harm.

How Does BSCI Audit Compare to SEDEX Audit?

SEDEX audit and BSCI audit are the greatest auditing standards or the most accredited auditing standards to use.

You can either choose to use SEDEX auditing or BSCI based on their advantages and disadvantages.

Here is a comparison between the two types of audits.

Similarities between SEDEX and BSCI

Accepting SEDEX auditing standards will definitely lead you to accepting the BSCI auditing standards.

You will use SEDEX audits and BSCI audits to enforce the social responsibility that is required of suppliers.

Difference between SEDEX and BSCI

You will use BSCI audits to compel the business community to social responsibility audits including all BSCI social partners.

On the other hand, SEDEX also has the same social responsibility requirements except for a few differences.

For instance, SEDEX audit has its own working hours requirements for the employees which is different from BSCI audit requirements.

What are Some of the Offers that You Can get from the BSCI Audit System?

BSCI

To make the implementation of BSCI code of conduct quite simple, there are special offers that you company receives.

Here are some of the offers that you company could receive under the BSCI code of conduct.

• A single unit of code of conduct
• A single unit of the implementation system
• Various activities and tools that will support producers and companies
• Connection to all your importers, retailers, as well as brand companies.
• Special connection to all the products in different locations worldwide.

Which Kind of Offers Do BSCI Audits Fail to Provide?

BSCI audits are not auditing firms so they do not conduct the audits.

All they do is provide the guidelines on what is expected during the audit of your company.

Apart from that, they will also provide you with accredited auditing companies that will audit your firm.

Later, you will receive an audit report from them thus rating you among the companies with clear reputations.

Where Can I Use or Employ the BSCI Audit?

You can use the BSCI audit especially if you are a company that deals with international businesses.

It is the best auditing criterion that you will follow for international markets and cooperation’s with companies abroad.

It will make sense to your company especially if you are seeking to strengthen responsible cooperate action.

Furthermore, it will help your company to have the perfect reputation among BSCI members and international suppliers.

Remember, it is a critical aspect of factory audit in China.

What Kind of Evaluation Ratings are Available for the BSCI Audits?

After the conclusion of an audit on your company, you will receive a report with the results.

The results that you will receive will have a rating of your companies’ performance on the audit.

Your company will receive evaluation results ranging from an A for outstanding performance to an E for poor performance.

Here is the list of the evaluation grades that your company might receive.

• A for outstanding performance
• B for good performance
• C for acceptable performance
• D for insufficient performance
• E for unacceptable performance

What are the Benefits of Conducting BSCI Audits?

BCSI Certificate

Having BSCI certification after a BSCI audit will help you manage your company in a better way.

Here are some of the benefits that you will get from BSCI certified.

• Your company will be open for new marketing possibilities thus strengthening the consumer and customer trust.
• You will have a stronger foundation when it comes to business relationships giving you an upper hand in tender procedures.
• You will have the perfect basis of being SA800 certified.
• You will have the perfect improvements especially in the management of your value chains.
• You will also save on time as well as cost as you avoid having multiple audits on your company.
• You will also have a proper share of responsibility in the fair production of goods.

What is the Relationship Between SA800 Standards and BSCI Audits?

Well, SA800 standards are international standards that have better requirements than BSCI audits.

You should strive to make your company comply to the SA800 standards thus making BSCI audits easy.

In case your company complies to the SA800 standards, then you are in a better position to pass BSCI audits.

Which Practical Steps Should You Conduct in Preparation for BSCI Audits?

Well, before you conduct a BSCI audit on your company, there are practical steps that you need to follow.

Here are the main factors that you need to have in preparation for the BSCI audits.

· Familiarize with BSCI Code of Conduct

It is important that you know the code of conduct of the BSCI regulations for proper referencing and guidance.

· Conducting Internal Audits

You can also prepare for the actual audit by conducting an internal audit of your company.

It will help you identify the issues that you need to adjust before the main audit happens.

· Refer to BSCI Checklist

You should also refer to the checklist which will guide you on the things that you need to have in place.

Do You have Any Form of Technology that You Can Use in Streamlining BSCI Audits?

Yes, in the digital world, you can download apps that will assist you in the streamlining of BSCI audits.

You must, however, note that the apps are different especially according to the auditing firm that makes the apps.

How Can You Tell the Validity or Authenticity of a BSCI Audit?

You can check the authenticity of the BSCI audit by confirming the suppliers name on the first page.

This will indicate that the BSCI report you are about to read belongs to that particular company.

BSCI Report

After that, you will send the report that you receive from the company for proper verification.

In this case, you will get in touch with the BSCI audits to help you verify the authenticity of the report.

You must also look at the dates as the BSCI audit reports are valid for a particular period of time.

How Will You Find Suppliers that are BSCI Audited?

You can find suppliers that are BSCI compliant by doing a proper supplier search over the internet.

During the research, you will have to tick the box BSCI box to filter the results accordingly.

You may find suppliers with false claims of being BSCI accredited prompting you to do proper verifications.

You can also visit trade shows and meet suppliers with BSCI logos which verify them as BSCI compliant.

What Will It Cost My Company to Have a BSCI Audit?

You will have to pay a certain amount of money for the BSCI auditors to audit your company.

Generally, BSCI audits often begin from 650 US dollars per factory audit.

The cost will, however, vary according to the accreditation of the company conducting the BSCI audit.

The higher the accreditation of the auditing company, the higher the cost of the audit.

What is the Hinderance Behind Most Suppliers Not Being BSCI Certified?

The main hinderance behind most suppliers not being BSCI certified is the fact that they cannot pass BSCI audits.

Most suppliers fail to implement the protocols or requirements of the BSCI audits thus leading to total failure.

Can I Conduct BSCI Audits in Any Company?

Absolutely, you can conduct BSCI audits in any company especially if the company deals with consumer goods.

It is, however, very common in the children products as well as the textile industries.

You will find it very hard to have BSCI audits on the electrical companies.

Why Work with Chinese Manufacturer who are BSCI Compliant?

Well, working with Chinese companies who are BSCI compliant will boost your company’s reputation.

It will increase the confidence and trust that people will have within your company.

This includes confidence and trust within the internal organization as well as the external organization.

In effect, it will lead to a proper and prosperous working environment.

Apart from that, your company will stay clear of the governments scrutiny as your business dealings will be clean.

What does the BSCI Audit Checklist consist of?

BSCI Check list

BSCI checklist is a tool that you will use in the assessment of social and ethical policies.

Apart from that, it will come in handy during the assessment of operational procedures and regulations within an organization.

The checklist will help you as an auditor to ensure that you do the following:

• Checking if the documents that you need for auditing are complete
• Assessing the organization in a bid to identify the items that are non-compliant.
• Assignment of corrective actions that the company will use for immediate rectification.
• Recoding of the overall assessments are recommendations
• Signing off the audit with digital signatures in validation of BSCI audits.

In short, once you understand all the critical aspects in this guide, it will be easier to import your products from China.

At Tj chinafreight, we help you comply with all the critical aspects when importing and shipping from China.

MOQ is one of the major factors every importer considers when purchasing products from suppliers.

By the end of this guide, you will be knowledgeable on all aspects concerning MOQ when importing from China.

Keep reading.

What does MOQ mean?

MOQ refers to the least quantity of products that a manufacturer is willing to produce and sell at one time.

How do Chinese Manufacturers Calculate MOQ?

The cost of production for every single unit determines the MOQ imposed by Chinese manufacturers.

Why is MOQ Important?

MOQ is very important for every manufacturer.

It not only ensures that the cost of production is met but also manufacturers are able to make a profit and maintain healthy cash flow.

Most if not all Chinese manufacturers work on low-profit margins.

Therefore, they focus on bulk production in order to meet the time, cost, and energy utilized during the production process.

Can MOQ Affect your Import Business Negatively?

Yes, it can.

To start with, MOQ provides you with the cheapest possible price for a unit.

The more you purchase the best price you get for each unit.

Therefore, this might turn into generating huge profits in your business.

How does MOQ compare to EOQ?

EOQ

Economic Order Quantity (EOQ) is also termed as the optimal lot size.

It refers to the order quantity that is used to minimize the total cost of inventory.

On the other hand, the Minimum Order Quantity is the least quantity of products that a manufacturer is willing to produce and sell at one time.

In a nutshell, EOQ mostly focuses on the customers-side friction while MOQ focuses on the suppliers-side friction of a particular order.

What are the Disadvantages of MOQ?

In as much as MOQ is advantageous it’s also disadvantageous.

The initial cost needed for the production of your units might seem high especially if it’s a new business.

For instance, a manufacturer proposes an MOQ of 900 pieces for $15 each.

This means that you will have to cough a whopping $13,500 which might exceed your budget.

In fact, this is one of the reasons why most first time importers shy away or are reluctant in their startups.

How does MOQ Affect Price of Goods from China?

The higher the MOQ the less the price of the goods and low MOQ equates to a higher price of goods.

Why do MOQ for Chinese Suppliers Vary?

MOQ

There are a couple of factors that affect the MOQ for different suppliers not excluding;

• The type of product –Cheap items such as pens, pins, and matches normally have a higher MOQ as compared to items such as televisions and laptops.

Therefore, the MOQ will vary from one supplier of a specific type of product to the other.

• Quality of product – Suppliers producing high-quality items normally have a higher MOQ due to the higher cost of production incurred.
• Raw materials used –The subcontractors providing raw materials for the suppliers might have a high MOQ, therefore, compelling the supplier to increase their minimum order quantity.
• Customization – Suppliers receiving customized orders might have a higher MOQ owing to the higher production cost of custom parts not forgetting longer production time.
• Size of factory –Bigger and established factories offer higher MOQ as compared to smaller factories. This is due to the higher number of orders and production cost and therefore a lower MOQ would be unsuitable and unworthy for such suppliers.

What is the MOQ for Custom Goods from China?

The MOQ for custom goods varies from one supplier to the other.

In addition to that, the MOQ for custom made products is usually higher as compared to other products.

Most of the suppliers opt to have an MOQ from 1000 units for every custom goods.

Remember, you can as well try to negotiate with your supplier and therefore this is not a fixed amount.

How Can Business Importing from China Benefit from MOQ?

MOQ allows businesses to purchase products at relatively lower prices and therefore increasing the profit margin for businesses.

In addition to that, an MOQ provides the buyer with an opportunity to test the products before purchase.

As a result, reducing any risks regarding the quality and safety of the order.

How do you Negotiate for Low Minimum Order Quantity?

MOQ for different product on Alibaba

Most suppliers are normally reluctant when it comes to lowering their MOQ as they want to maintain their profits and ensure that there is steady cash flow.

However, this doesn’t mean that you shouldn’t try to negotiate.

As compared to suppliers from other countries, some Chinese suppliers are quite flexible when it comes to lowering MOQs.

To achieve an effective negotiation, ensure that both parties are safe.

Meaning the supplier will not incur any losses as a result of lowering the MOQ.

You might as well consider proposing any of the following in a bid to get your supplier on board;

• A long-term commitment
• A higher price per unit

Nevertheless, never rely so much on this rule of negotiation of MOQ with your supplier.

What is MOQ in Supply Chain?

The Minimum Order Quantity refers to the least amount of products that a manufacturer is willing to produce and sell at a particular time.

What Affects MOQ in China?

The Minimum Order Quantity is affected by factors such as;

• Customization- Customized products attract a higher MOQ and the more the customization the higher the MOQ gets.
• Size of the factory – Often, bigger factories only deal with bulk purchases and therefore have a higher MOQ as opposed to smaller factories.
• Raw materials used – The subcontractors that provide raw materials for suppliers might impose high MOQ on the raw materials thereby compelling suppliers to raise the MOQ of the final product.
• Type of product – You are bound to come across higher MOQ for cheap and simple items such as pens, pins, matches among others as compared to products such as laptops and bags. Chinese suppliers work within a narrow profit margin and therefore to attain profits for smaller items they will have to produce several of them. Remember, all suppliers are aiming to maintain profits and cash flows for their businesses.

Why do Chinese Supplier Operate within MOQ?

Minimum order quantity

Operating within MOQ enables Chinese suppliers to stick to steady cash flow as the MOQ covers the production costs.

Additionally, the suppliers are able to control the costs associated with warehousing as they keep stock of their goods while at the same time maintaining business profits.

Not forgetting that most manufacturers purchase and produce their raw materials in bulk and therefore anything less than this might drastically affect their operations.

How can Small Business meet the MOQ?

Small businesses might feel left out when it comes to negotiating the MOQ with suppliers. Nevertheless, here are some tips that small businesses can implement when trying to get their supplier to agree to reduce the MOQ.

• Raise the price – As I mentioned, most suppliers are in a bid to maintain their profits no matter what. That said; make sure that your proposal feels comfortable for both parties. By raising the cost, there’s a higher chance that your supplier will be willing to lower their MOQ.
• Purchase from smaller factories – As compared to big factories smaller manufacturers are more likely to have lower MOQ as they deal with smaller purchases too.
• Try negotiating – Yes, negotiating works. And how it works depends on how you convince your supplier that by lowering their MOQ they will still maintain their profits and that you are a serious buyer.
• Ordering during the low seasons also could make a difference in the amount of MOQ you will be offered by suppliers.
• Engage in joint orders – By this, I mean joining heads with other similar importers and ordering the items as one from your supplier without compromising the price.
• Pay in installments – The total MOQ might seem quite huge for smaller businesses and therefore by paying in installments the burden is eased. Keep in mind not every supplier will agree to this therefore you need to enquire and negotiate with your intended supplier.

What are the Risks of Going for the Lowest MOQ?

Negotiating for a lower MOQ is not always the ideal option to settle for owing to the following reasons;

• Low quality – Often, a low MOQ will compel the supplier to produce products at the least cost possible which might tamper with the general quality of your goods.
• Poor safety of the product – A low MOQ might as well compromise the safety of your products as the supplier will be focusing on producing at the least costs.
• A low MOQ would also mean poor customer care and support as compared to higher MOQ.

How can MOQ affect your Online Business?

MOQ might be a limiting factor for new online businesses in a manner that not all suppliers will be willing to lower their MOQ in order to fit in the buyer’s budget.

Therefore, online businesses will have no option but to search for smaller retailers.

These smaller retailers provide lower to zero MOQ and higher prices per unit in order to cover the overall production costs.

Are there Chinese Manufacturers with No MOQ?

Yes, there are.

However, keep in mind that many of these suppliers offering zero MOQ are not the actual manufacturers.

Most of them are wholesalers providing goods for the local market and therefore the products might lack proper safety standards and labeling requirements.

Why do Chinese Suppliers accept Low MOQ for Higher Price per Unit?

The reason why most if not all Chinese suppliers will require you to raise the cost per unit.

That is, if by chance you want a lower MOQ is that they want to maintain their profits and ensure that there is steady cash flow.

Lowering MOQ affects the production cost and therefore by raising the price per unit they are able to cover all costs incurred during the production process.

Which Products have Low MOQ in China?

Pricier and larger items always demand a lower MOQ as compared to cheap and smaller items such as pens.

This is because most Chinese suppliers work within narrow profit margins and therefore they constantly need to produce more products to achieve the desired profits.

For that reason, producing fewer cheap items would be a total loss to them.

What determines High MOQ for Products in China?

Higher MOQ will be determined by the following main factors;

• Size of the product –Often, smaller and cheap products will have a higher MOQ as compared to larger and pricier ones in order to cover the production costs and maintain profits.
• Customization – The more customization your products need the higher the MOQ. Keep in mind that with customization, the supplier needs to purchase specific materials that might already be subjected to higher MOQ, and additionally they might require special production process. All these might need the supplier to adjust some operations to accommodate your order and this finally equates to a higher MOQ for customized orders.
• Sizes of the factory – As compared to smaller factories, bigger factories normally have a higher MOQ. This is due to their bulk purchases and bulk production of goods.

How do you know MOQ for Chinese Suppliers?

It’s simple.

Just ask.

Enquire from your supplier and find out their MOQ for your products.

Thereafter you can choose to negotiate and come to a mutual agreement.

What is Minimum Order Value?

Just as the name implies, Minimum Order Value refers to the smallest number of items that can be ordered at a given time for a single delivery.

Can you get Flexible MOQ Requirement in China?

Yes, you can.

As compared to suppliers from other countries, Chinese suppliers are quite flexible when it comes to MOQ requests.

Some are willing to lower or negotiate their MOQ for their serious clients thereby accommodating the smaller businesses as well.

Can Buying below MOQ affect Quality and Cost?

Yes, it can.

In as much as purchasing below MOQ might sound attractive due to the lower costs, it’s not always a wise idea.

Most of the products might turn out to be of lower quality.

Not forgetting that the safety and labeling requirements might as well be compromised in a bid to lower production cost.

Between Alibaba and Factory; Where can you get Low MOQ?

Since most factories deal with bulk purchases it might be quite challenging to get a low MOQ in factories as compared to Alibaba.

In Alibaba, you will find MOQ ranging from as low as 10 -20 pieces.

However, you need to keep in mind that these are mostly wholesalers who provide the goods to the domestic market and this could mean that safety and quality standards are compromised.

Nevertheless, there exist plenty of suppliers willing to offer low to zero MOQ, and it’s up to you to do your research thoroughly.

Make proper use of Google and other online B2B platforms to gauge the different suppliers available.

Is there MOQ When Buying On AliExpress?

MOQ, which means minimum order quantity, is the least order quantity requirement on AliExpress.

Most sellers on AliExpress do not have MOQ. In fact, you can buy one item or as many as you wish.

Of course, this is not the case with Alibaba where suppliers have MOQ.

Why Do Manufacturers In China Set MOQ?

Just like any other company, China manufacturers’ main priority is to make a return on investment.

MOQ help China manufacturers to remain operational and make profits from their products.

Even for importers, you need to import a number of items from China to realize profits.

For instances, it is not economical to import one screen protector worth $0.5, then spend more to ship to your country.

For the manufacturers in China not to experience any losses, they will set an MOQ that will help cover the cost of manufacturing the item.

Can You Buy A Single Item On Alibaba?

Alibaba is a wholesale online marketplace.

Where you can buy products in bulk but at affordable rates.

If you wish to buy one single item on Alibaba, you will have to negotiate with the seller.

The negotiation’s main aim is to assess if the seller will allow you to buy one item.

One benefit of using Alibaba is that the marketplace gives you an opportunity to work in correspondence with the manufacturer.

For example, this seller alloys you to buy one swimming pool enclosure.

But of course of course the price of the item will determine whether you get lower MOQ or not.

Why Do MOQ On Online Marketplaces In China Vary?

There are few aspects that influences the disimarility of MOQ among online marketplaces in China.

Here are some of them:

· Type of Product

In most cases, cheap products tend to have high MOQ. For example, if the online marketplace sells pens, toothpicks, or matches, the minimum order might be 10,000 pieces or higher.

However, if the product is a bit complex and expensive, the MOQ might be lower.

For instance, machines, sofa sets or swimming pool enclosure have low MOQ.

You can buy a single set or item.

· Customization

There are a few online marketplaces that offer customization services.

Customization of products tends to require a lot of production time and high production cost.

Hence an online marketplace that offers customization is likely to have a high MOQ compared to those that offer standard products.

· Sellers Discretion

Remember, online marketplaces in China do not set the MOQ.

It is the sellers who set MOQ that is good for their business and customers.

How Do You Set Up MOQ?

Note that there is no standard formula on how MOQ ought to be set up.

This is because every business is different.

For the reason that every business has its own dissimilar needs.

Here are some guidelines that will be of help while setting up MOQ.

Assess your demand– with this, you must understand the product’s demand according to its seasonality, competition, lead time, and ship time.

Come up with a figure that will help you understand how much you need while trying to respond to the change of demand.

If the demand is high, the manufacturer will likely set up high MOQ, and vice-versa is true.

Determine carrying cost– Note that there are products you are likely to incur more while transporting them.

For example, there are products that require refrigeration whereas there are those that can do well while in the warehouse.

The manufacturer is likely to set a high MOQ for it to cover the holding cost.

Determine break-even-point– While assessing this factor, there is one major question that you ought to ask yourself before setting up the MOQ.

You should check how many products you ought to sell for you to recover the amount you spent while acquiring them.

This will guide you on the MOQ you ought to set for your business.

Are There Benefits Of High MOQ?

Yes, there are a few benefits of having a high MOQ.

Here are some of them:

• Let’s say the raw materials you used were expensive or the staff-hours used in the production time were a lot.

Then having a high MOQ will be of help as it will cover the cost you used.

• If the product you are producing is expensive and challenging to produce.

It will then make perfect sense to have a high MOQ as it will ensure that you do not incur any losses.

• Having high MOQ helps weeds out retailers who are fond of bargaining.

It is better off to deal with a few clients who are willing to spend big.

However, if you repeatedly have to deal with clients who only bargain, chances are high, you will get your full profits.

• Having a high MOQ will help you determine which business is willing to work with you.

Is MOQ A Requirement When Importing From China?

Yes, most manufacturers from China have an MOQ that need to be met.

Don’t get it wrong.

The Chinese Government does not stipulate the MOQ.

It is the product manufacturer or suppliers in China who set the MOQ for their businesses.

Is There MOQ For Amazon FBA?

Fortunately, there is no minimum order quantity with Amazon FBA.

Sellers are free to send out any order quantity requested by the clients.

You may order one single item without incurring any penalty.

How Does EOQ Compare To ROP? 

EOQ, which stands for economic order quantity, is the order quantity that decreases the ordering fee and total holding cost.

ROP, which stands for reorder point, is the minimum order quantity that a business should have in their inventory before deciding to reorder more items.

The difference between ROP and EOQ is that ROP helps the supplier know when to order new products.

Whereas the supplier uses EOQ to determine the order’s size.

Is There MOQ For Products Samples From China?

Yes, there is MOQ for product samples from China; however, the rates are meager. Most China manufacturers assume is that when you pay for the sample order, you are a serious client.

Most suppliers consider it as a milestone when a client pays for courier charges.

Of course, most Chinese manufacturers offer free sample.

However, there are agreements or terms for free samples.

Is There A Recommended Method Of Valuating MOQ For China Suppliers And Manufacturers?

There is no derivative method that you ought to use while evaluating MOQ for China suppliers and manufacturers.

This is because there are times MOQ is measured monetary value of order instead of units of goods ordered.

For instance, there are China suppliers or manufacturers that would only be willing to sell their products that total to a thousand dollars.

In this kind of case, the valuation of MOQ would be based on the actual value of the order and not quantity.

How Does High MOQ Compare To Low MOQ?

i. High MOQ

Low MOQ has a specific value to it.

This is not the same case with high MOQ.

Also, this is because the value varies with product types and the industry.

Most suppliers who set this kind of MOQ are the ones who are quite established in the market.

This kind of MOQ only permits patronage from just the top 20% of stores.

Again, this kind of stores are the ones that are usually on top of a cadre of consumers.

ii. Low MOQ

Low MOQ ranges from one to fifty units.

In most cases, suppliers who set this kind of MOQ are those are new in the market and wish to create a niche.

Suppliers who use this kind of MOQ may incur more loss as the break-even is not guaranteed.

However, the low MOQ guarantees to have loyal prospective clients.

But, this does not mean that the clientele cannot request some negotiation, as the manufacturer can set a value that suits both of them.

Note that MOQ differs with different stores.

However, your main priority should not to be MOQ while choosing a manufacturer.

Here are some of the things that you ought also ought to check:

i. Assess product safety

ii. The business’s track record- while checking this you should check on their delivery time and the kind of integrity the business holds.

iii. The kind of customer support system the manufacturer has to offer.

How To Find Chinese Suppliers With Low MOQ?

There are various strategies that can help you get Chinese suppliers with low MOQ such as:

1. Have a direct conversation with the manufacturer- It is easier to have a good negotiation when you are directly communicating with the manufacturer instead of a third party.
2. Check from various online marketplaces such as Alibaba, DHgate, Made in China, AliExpress, etc- Most of these online marketplaces tend to have Chinese suppliers.

The best part, suppliers offer varying MOQs depending on their business model.

3. Compare various Chinese Suppliers- the good thing about Chinese suppliers is that most of them have flexible MOQ. By comparing them, it will help you find one that suits you.
4. Try finding Chinese suppliers that are still new to the market. In most cases, such suppliers tend to offer low MOQ to their clients.

How Do You Meet The MOQ As A Small Business Importing From China?

As a small business, often than not you will need to start with a low order of products.

That is, if you have not yet established your niche.

If you wish to make imports from China, you will need a supplier that will meet your MOQ.

Also, if you wish to use a Chinese supplier with a low MOQ, your best option is to communicate with the supplier directly.

While conversing, ensure you state the number of units you need and what you can afford.

The good thing is that most Chinese suppliers tend to have different rates on their MOQ.

You can also use business directories to get more suppliers and manufacturers in China.

Can You Exceed MOQ Set By Suppliers When Importing From China?

Yes, you can exceed MOQ set by suppliers when importing from China.

MOQ set by suppliers defines the number of units they can supply at one time.

There is no problem if you exceed the set minimum order.

If you think you will exceed it, ensure you communicate with the supplier.

This will enable them to confirm if they have the materials to produce your units.

Why Should Wholesale Suppliers In China Have MOQ Yet Their Prices Are Low?

It is good to note that there are suppliers who will accept smaller orders only if price per unit is higher.

As much as the charges might seem very low, wholesale suppliers have MOQ to ensure their business remain profitable.

Apart From MOQ, What Other Products Ordering Constraints Are There?

MOQ is not the only ordering constraints that are notable; here are some of the other ordering constraints:

• Lot multiplier- this is an ordering constraint that states that the units ordered by product ought to be a multiple of a specified integer.

The constraint often influences the choice of packaging.

• Economic Order Quantity (EOQ) -In comparison to MOQ, which often reflects the supplier’s side of the experience.

EOQ reflects the customer’s side of the experience.

• Price breaks- this is a reduction in price, especially on bulk orders.

How Can You Optimize An Order Under MOQ?

MOQ tends to complicate the ordering process.

This is particularly true as the purchaser has to assess the right amount to order while meeting the MOQ.

One strategy you could use if you wish to optimize an order under MOQ is to assess the economic return you will incur from every unit.

Secondly, you could filter out any quantities that are likely not to meet the ordering constraints.

While doing this, ensure that you rank these infeasible options corresponding to their rates of returns.

Note that doing this activity requires software that helps in the optimization of problems.

How Do You Evaluate Cost And Timeline of MOQ When Importing From China?

One thing you ought to understand is that the cost and timeline tend to differ with suppliers.

This is due to factors like materials, time, and cost for the overall production.

There are no particular rules when defining MOQ for the reason that it can range from one unit to a hundred at a time.

This is why you will find in some cases; some suppliers prefer having minimum price order instead of a minimum order of quantity.

If you come across such a supplier, you will have to figure out your budget before you decide to work with them.

They basically do this to ensure they make profits.

It gets better as there are suppliers who do not have an MOQ.

This can be helpful if you don’t the number of products you need.

Also, it will offer you an opportunity to test out their products before settling with the supplier.

While placing your orders, you will definitely realize that the more you order the lower the production cost.

This is possible because suppliers tend to make their products in bulk.

What Are the Benefits of Working With A Chinese Supplier With No MOQ?

When starting a new business, you may not have enough money to buy large quantities of products.

This is where the Chinese suppliers with no MOQ.

It is because you can order even small quantities to keep your business going.

It gives you the chance to test the product’s demand. This way, you will focus on products that buyers need.

You could also pre-order for clients as you will not be penalized for failing to meet any MOQ.

Making use of a Chinese supplier with no MOQ also allows you to test out the product.

You can make small orders to check if the products meet quality requirements.

From here, you will decide to buy in bulk or not.

Hence you a

OEM and ODM are popular terms not only used in manufacturing but also the import and export sectors.

In this guide, we explain what OEM and ODM entail, together with how the two compare to each other.

What is OEM?

OEM otherwise known as Original Equipment Manufacturer is a company that designs and manufactures products depending on the buyer’s preference and specifications.

OEM

The parts produced are later used in another company’s products to come up with an end product.

Not forgetting that these manufacturers offering OEM services can as well print the buyer’s logo on the products.

Afterward, buyers are free to resell the products using their brand names.

What are the Benefits of OEM?

Working with OEM attracts a couple of benefits not excluding;

• Quality products –OEMs are geared to producing quality products as most are customized by the buyer. To add to that the manufacturer produces quality products in order to maintain the clients.
• Cost-effective –As compared to other companies, OEM provides their services at a cheaper rate as they produce bulk products.

Big brands and multinational cooperation are able to save on their bulk orders.

• OEM facilitates the fast growth of your business.
• OEM also provides you with an option to ship products directly to your customer.
• Also, OEMs offer their clients with complete customization options.
• The buyer owns the intellectual property of the products.
• OEM creates a competitive ground for your business as it is difficult for another business to copy your products.

What are the Disadvantages of OEM?

Some of the cons related to the OEM industry are not limited to;

• OEM only deals with bulk orders and therefore you will have to be selling a huge amount of products in order to procure OEM services.
• The higher MOQ (Minimum Order Quantity) set by most OEMs limits small businesses in acquiring the products.
• The cost of development is expensive.

How does OEM Work?

OEM works by producing parts or products that are otherwise used by another company to produce a finished product.

With OEM the buyer is free to customize his or her own products.

What is ODM?

ODM otherwise referred to as Original Design Manufacturing refers to products that are designed, manufactured, and produced based on the manufacturer’s specifications and preferences.

The products are later rebranded and resold by another different company.

Besides, the manufacturing company chooses for you the designs available leaving very little to no customization for your products.

What are the Advantages of ODM?

Some of the benefits of ODM are not limited to;

• ODM saves time– As compared to OEM, ODM does not need any form of researching or designing of the product. Therefore, less time is consumed.
• Cost-effective – Most ODM charge lower prices for their products and to add on that they require less startup capital.
• Lower MOQ – Expect the minimum order quantities to be lower as compared to OEM since fewer costs are incurred.
• ODM leaves you with time to focus on other matters such as the marketing and development of your brand as they take care of your order.
• ODM products are faster to market as compared to OEM products.

Are there Disadvantages of ODM?

In as much as ODM might seem advantageous to some, here are some drawback that you might find important to consider;

• ODM offers limited customization for your products.
• Production of similar products with your competitors makes it difficult to differentiate your items.
• ODM have smaller profit margins as compared to OEM.
• The buyer doesn’t own the intellectual property of the products.

How does ODM Work?

Original design manufacturing also referred to as “private labeling” leaves little to no product customization for the buyer.

The manufacturer designs and manufactures the products that are afterward rebranded and resold by another different company.

How does OEM compare to ODM?

OEM vs ODM

OEM compares to ODM in a manner that OEM allows for product customization depending on the buyer’s choice and preferences.

On the other hand, ODM products are finished and ready for resell by the buyers.

Most OEM products consist of parts that are meant to be used in the manufacture of a finished product.

What is the difference between OEM and ODM?

OEM allows for customization of products by the buyers and mostly produces unfinished products.

On the other hand, ODM produces finished products that are ready to be sold and doesn’t allow for customization.

In addition to that, OEM products are unique and difficult to copy.

Alternatively, ODM products normally have a uniform resemblance making it even harder to compete effectively in the market.

ODM has a lower MOQ as compared to OEM.

This is due to the extra expenses that OEM products require.

As with OEM, the injection molds and tooling are paid by the buyer as compared to ODM where the ODM pays the injection molds and tooling.

The project development time for OEM products normally ranges from 1 to 8 months while ODM products range from 1 to 4 weeks.

Also, once you purchase OEM products, you as the buyer will own the intellectual property of the products.

This is quite different when it comes to ODM as you will not own the intellectual property of your products.

What are the Similarities between OEM and ODM?

OEM and ODM have very few similarities. To begin with, both OEM and ODM facilitate the growth of your business.

In addition to that, both OEM and ODM products can be rebranded and sold as the buyer’s company own products.

Also, the mass production time is similar for both OEM and ODM

How does Chinese Manufacturers Support OEM and ODM Business Models?

Chinese manufacturers support OEM and ODM business models by creating a platform where buyers can order ODM and OEM products.

Taiwan, Shenzhen, Yiwu are some of the cities in China where you can find OEM and ODM business models.

How does OEM Parts compare to Aftermarket Parts?

OEM parts are mainly used by another company to complete the production of their unfinished products to finished products.

On the other hand, aftermarket parts are mainly used for replacement and are designed to be compatible with several gadgets or models.

In simple terms, aftermarket parts are used to replace OEM parts.

Take for instance a Mercedes car that needs servicing or repair.

Once you take it to a Mercedes authorized dealer, it’s with no doubt that your car will be replaced by genuine Mercedes parts (OEM parts).

However, if you decide to take your car to your local mechanic shop, there shall be an option of either using aftermarket or OEM parts.

How do you Select ODM Manufacturer?

Selecting an ODM manufacturer is not a hassle. First, you need to identify your preferred manufacturer.

By this, I mean the one who deals with the kind of products that you intend to purchase.

After finding one, you can choose to make some little adjustments to the products.

Such adjustments are limited and might include the type of material and color of the material used for the products.

Remember, you have to take some factors into consideration before selecting your manufacturer.

Such factors include;

• The manufacturing capacity of your products.
• The manufacturing company should be reliable.
• Delivery timelines. Whether big or small your order is, the manufacturers should be able to deliver your products at the specified timelines. Note that if you have a small order, some manufacturers might de-prioritize your delivery. This might happen during certain times such as Christmas, Chinese New Year.
• Make sure that your manufacturer possesses effective communication skills. The manufacturer should able to provide timely replies, should be easily contacted, and should respond to any of your concerns.
• Research on the manufacturer’s track record as this gives you analytics of the manufacturer’s quality and efficiency.

What is the difference between ODM and OEM Products?

The main difference between OEM and ODM products is that OEM products are manufactured in order for them to be used by another company.

That is in the production of an end product.

On the other hand, ODM products are finished products that are ready to be introduced to the market.

Additionally, the project development time for OEM products takes longer as compared to ODM products.

Where can you find Suppliers Offering OEM and ODM Products in China?

There are several suppliers in China offering OEM and ODM products.

Some of these suppliers are found in areas such as;

• Ningbo
• Shenzhen
• Guangzhou
• Tianjin
• HongKong
• Taiwan
• Wenzhou

You could as well find suppliers offering OEM and ODM products on online platforms such as Alibaba, Made in China, Global Sources, and Aliexpress just to mention a few.

To add to that, you can also locate the suppliers in trade fairs.

China has a number of Trade fairs that happen every year and attending some of them would expose you to suppliers that deal with your intended products.

Is ODM the same as Private Labeling?

Yes, it is.

Original design manufacturing is also termed as private labeling.

Private labeling refers to the manufacturing of a product by one company which later gets rebranded by another company.

Why is OEM Associated with IPR Infringement?

In many instances, OEM face counterfeits.

Who, without approval, use their marks on relatively same products.

Additionally, some businesses or individuals become trademark pirates or trademark squatters by registering marks of famous Chinese brands.

Some trademark pirates do this to capitalize on brand equity of the brand owner.

However, others may do it to negotiate payment from a brand owner in exchange for the mark.

Even so, the mark’s holder in a foreign market can contract Original Equipment Manufacturer (OEM) in China.

This would imply authorization of manufacturing of goods bearing the said mark specifically for export.

Where rights to said mark in PRC are held together by a different entity, such actions aren’t considered an infringement upon trademark holder’s rights.

Are all OEM Products Custom-made?

Not necessarily.

Most of the OEM products are often standard designs.

The essence is it makes it easy to sell since the design of most designs is compatible with the standard designs.

Custom-made OEM products are produced specifically on order.

You have to make your order for the specific designs before manufacturing custom made OEM products.

What is the Product Development Time in OEM?

The overall lead time for producing OEM products often varies depending on a wide range of elements.

First, it depends on the specific manufacturer’s capacity to produce particular parts.

In essence, this is based on labor, infrastructure, machinery, and equipment for production.

Another determinant factor is the order quantity.

Generally, large volume orders will take a bit more time compared to manufacturing a relatively low quantity.

Furthermore, the design requirements of the OEM parts also determine the specific development time.

A custom-made design will take more time compared to a standard design.

In principle, if you consider your new products using the manufacturer’s design formulations, the process can take a shorter time.

Even so, the average lead time for developing OEM can vary between 1-12 months.

Most manufacturers consider developing the products from the very beginning to labeling and packaging where necessary.

Nevertheless, you may want to consult the particular manufacturer to arrive at a realistic timeline.

This is vital, especially where there is an urgency to put the products in the market relatively early.

What is the MOQ for OEM Products?

Different manufacturers often quote varied MOQs based on a wide range of factors.

Some usually consider the overall cost of manufacturing the product to determine the ideal MOQ.

On the other hand, others often look into the profit margin to base their minimum order quantity.

Nonetheless, you ought to understand that you can always negotiate about the ideal MOQ with most OEMs.

You need to ensure you consult the relevant representative of the manufacturer to figure out the suitable OEM products.

Are OEM Products Safe?

Yes.

Most OEM products are safe, good quality, and also durable.

In essence, the manufacturers often follow the specific guidelines as provided by the relevant authorities.

The production process also conforms to all the laid-down procedures as stipulated by the authorizing bodies.

Furthermore, there are specific bodies in charge of inspecting the manufacturing process’s quality and final product.

For instance, buying an OEM product is typically better and safer than getting the aftermarket one.

The reason for the former, you can be sure of the materials used in manufacturing it, unlike the former.

However, in case you run into an issue with an OEM product, you might as well find yourself without necessary support.

In essence, most developers only offer a retail version of their specific products.

What is the Difference Between OEM and Genuine Parts?

In many instances, OEM and genuine parts are used as a replacement for failed, malfunctioning, or worn-out components.

However, the two sets of parts vary based on a variety of factors.

OEM parts are developed by the company, which initially made the particular parts.

Ideally, most of the OEM parts are same as the part, which came with the equipment or machine.

However, this type of part does not have the manufacturer’s logo.

These parts are relatively reliable and provide better value.

On the other hand, genuine parts refer to a component installed in the equipment, machine, or automotive when manufactured.

Genuine parts are comparatively expensive than OEM parts since they carry the company’s logo.

In some instances, a sister company may as well supply the part.

Technically, genuine parts were designed to be fixed in the respective components when they leave the factory.

They carry a little advantage over OEM parts.

However, it does not necessarily imply that the genuine parts are better than OEM parts.

Which E-commerce Platforms are Best for Ordering OEM products?

All the major e-commerce platforms are suitable for ordering OEM products.

These include Amazon, Alibaba, AliExpress, E-bay, Etsy, Global Sources, Made in China, Taobao, and Shopify among others.

What’s important when sourcing OEM products from such platforms is ensuring that you use a genuine and reliable sourcing agent.

Also, you need to determine the cost of different e-commerce platforms to ensure you obtain best rates.

What are the Elements of OEM Products?

OEM products are regarded as better options to consider since they present quite several aspects.

Some of these elements include the following;

Warranty – Most manufacturers of OEM products often provide a warranty on the items. This is essential since it assures you of the quality and reliability of the component.

Quality – The OEM products exhibit high quality hence guaranteeing high performance.

Price –Most OEM parts are relatively costly compared to similar aftermarket products.

Availability – Ideally, most certified parts centers usually order most of their parts from the manufacturer. In case it is out of stock, it can take a few days or weeks to restock.

Which are the Popular OEM Industries?

OEM products are used in different types of industries for a wide range of applications.

Of course, they help in enhancing efficiency and convenience as well as cost-effectiveness.

Some of the common OEM industries include the following;

· Automotive Industry

Most of the parts and components used in different automobiles such as cars, motorcycles, and other heavy commercial vehicles are OEM.

Several manufacturers in the automotive industry worldwide use OEM parts to assemble their cars.

Some of these parts include exhaust systems, electronics systems, tires, and plastic injection molded parts among others.

· Consumer Electronics and Computer Hardware

Most companies in this industry also use OEM to make different types of their products and components.

For instance, Apple Inc has, for a long time, been using components by different manufacturers in its iPhones.

Companies such as Lenovo has also been manufacturing IBM personal computers before it acquired IBM’s PC business.

· Start-ups

OEM’s are specifically ideal for start-ups or entrepreneurs.

If you are an entrepreneur with a great product idea, you can get an OEM to manufacture your product.

However, you must ensure you’ve done thorough research and development and that there is a clear demand for the product.

Ideally, getting OEM to manufacture the product is the most suitable, efficient, and fastest approach to get it into the market.

All you need is to find an experienced and competent manufacturer, possibly with the help of Tj chinafreight as your sourcing agent.

You’ll then share the prototype, ask for a quotation, sign an agreement, and await the shipment at your port of destination.

It is cost-effective, convenient, and much easier than setting up a factory from scratch.

· Cosmetic

It is also another common industry, which utilizes OEM products.

Once you figure out the specific product you want to develop, you’ll need to contact a reputable manufacturer to produce it.

All you need in this case is to prepare a brand name and base formulations where necessary.

The manufacturer, in many instances, will make applications to all relevant authorities where required for cosmetics sales.

Also, the OEM will inform you of required items to state on the packages and regulations of indication.

How Long Does it Take to Produce ODM Products?

Developing ODM product is somehow faster compared to OEM products.

Generally, the specific lead time depends on the manufacturer.

Moreover, the exact design of the product also determines specific lead-time.

Nevertheless, the average lead-time is usually between 1-4 weeks.

ODM allows the manufacturer to use already existing designs with minimal customizations if need be.

Also, the exact time for manufacturing this component may vary based on the degree of customization.

In case you are getting a mold designed for your product the average waiting time should be around four weeks.

Additionally, you should also expect about 2-4 weeks to create the product spec sheet and the design files.

Can You Obtain OEM/ODM Products as an Individual Seller?

Yes.

Most manufacturers often deal with both individuals and entities.

As long as you are interested in the specific industry, you can always get ODM products you need.

You only need to have creative and ideas and thoughts regarding the specific products you are seeking.

This is irrespective of whether you are an individual seller, trader, or corporation.

Furthermore, the manufacturers is always willing to provide production service and responsible for research and development.

What is the Cost of OEM/ODM?

The cost of OEM/ODM is dependent on a host of variables.

One of these variables is the particular type of product you are manufacturing.

In most instances, relatively technical products will be more expensive compared to less technical ones.

Also, the quantity of products you are producing determines the cost of OEM/ODM.

Many manufacturers usually offer discounted rates when producing a large quantity volume compared to a small quantity.

Another determinant factor is the specific manufacturer you are seeking the ODM/OEM products development from.

Expectedly, some are a bit expensive based on numerous factors, whereas others are somehow affordable.

Your choice of manufacturer, nonetheless, will be guided by several factors and not necessarily cost alone.

The degree of customization is another significant determinant of OEM/ODM cost.

A highly customized part takes quite a lot of resources and time hence tend to be priced higher than a standard component.

In a nutshell, there is no specific cost for ODM/OEM since it depends on various factors, as mentioned above.

In which Industries are ODM Products More Common?

Most ODM products are quite common in relatively developed industries such as machinery, electronics, and other hardware.

In particular, the popular ODM products developed by various manufacturers include kitchen appliances and LED lighting.

Ideally, ODM products are somehow less common in low-cost industries, which are more design than function-oriented.

For instance, you’ll rarely find ODM products in fashion, jewelry, and footwear industries.

How can you Find ODM Product Suppliers?

In essence, there is no restricted category of ODM suppliers in the market.

Most manufacturers in different industries started as OEMs.

This involved developing products based on their clientele satisfaction.

Nevertheless, some suppliers are investing significantly in developing their ODM products.

On the other hand, others specialize in uploading ODM products for reference only to their respective accounts on various e-commerce sites.

It is also important to understand that there is nothing wrong with latter.

But to avoid making critical mistakes, you need to know this aspect.

Some of the best places you may consider when looking for ideal ODM product suppliers include Alibaba and Global Sources.

You may as well think of visiting the numerous trade fairs taking place in different Chinese cities.

If you are a start-up company trying to find footing in the industry, the best place would be to talk with specific manufacturers in the sector.

Such manufacturers are helpful, especially for businesses with smaller product volumes.

Even so, you must carry out due diligence when selecting the best supplier for ODM products.

What Does it mean when a Supplier Claims to offer ODM Products?

Supplier listings are quite broad; hence can easily confuse by assuming they have all the products.

In essence, factories make to order as far as ODM products are concerned.

It thus means that they rarely have stock waiting for buyers.

Secondly, product listings can fail within any of the following categories;

· Customer Products

Existing customers may be the owners of these designs.

In such instances, the product is only shown as demonstrating what they have created in the past.

However, the supplier may not have a fixed spec sheet or a design drawing for the specific product.

· Supplier Developed Products

A number of suppliers invest hugely in product R&D and tooling.

However, this remains an insignificant part of all the listed products on the major supplier directories.

If you choose to go, this direction always have it in mind that the supplier will have a lot of influence, as is their IP.

· Demonstration Products

In the digital marketplace, you’ll find some suppliers uploading product images they never necessarily manufactured.

Therefore, you are likely to pay for the tooling, which can be questionable if it is listed as ODM product.

If it’s a digital design, it can be acceptable provided that it is created by a supplier to demonstrate what they can make.

Otherwise, it can never be acceptable if that is not the case.

Can You Reverse Engineer and ODM Specification?

Most ODM products are usually customized.

Therefore, suppliers expect you to provide them with the products specifications, even when they are purchasing ODM products.

Principally, many products are for reference only.

And in most instances, the PDF files and spreadsheets containing original product specifications are by then long gone.

Hence, it is your responsibility as the buyer to do the following;

a) List all the relevant product specifications

b) Verify all available customization alternatives with the supplier.

How Do You Ensure the ODM Product is not IP of Another Company?

Ideally, this is a litigation issue often common among many parties involved in development of ODM products.

Most of the list products are not actual ODM products but images of products manufactured for other customers in the past.

In many instances, these such product designs are the IP of the customer.

One way of preventing this is by making sure you never use the brand name and trademarks, which you never own.

Secondly, you may consider going to Amazon and figure out whether you can find similar products on the market already.

You should have in mind that not each product or function can necessarily be patented.

Nevertheless, it is always the brand name that is often the IP, even if a different customer designed the product.

Thirdly, you can get into further detail and carry out a patent search.

Alternatively, you can ask the suppliers to provide the documents demonstrating they own patent for ODM products.

Also, you ought to understand that a Chinese patent is only valid in China.

Now that you know what OEM and ODM is all about, you can proceed to import from China.

However, in case you have any question on finding OEM partner in China, feel free to contact us.

I know you’re wondering when you will receive your cargo from China.

If that is the case – today’s guide will give you time estimate and factors that may affect the shipping time from China.

So, before you import from China, read this guide.

When is the Best Time to Ship from China?

Shipping from China may seem to be a smooth experience where the cargo gets on the ship to your destination.

Well, this is true at particular periods of the year which is often the best time to ship from China.

The best period to ship from China is basically from late February all the way to late July.

Apart from that, you can also ship your cargo from late October all the way to early January.

There are periods when shipping from China is not good and that may lead to delays or high process of commodities.

Shipping from China from August to mid-October is often not recommended due to the China holiday retail peak season bump.

Apart from that, there is another shorter bump lasting from January to February due to the Chinese New Year.

Public holidays in China

The disadvantages of shipping from China during these periods include:

• High demand with very low levels of supply thus leading to increase in prices.
• Capacity within the shipping containers is also scarce as many shippers are on holiday

What are the Modes of Shipping from China?

There are four main shipping modes that you can use to ship your cargo from China including:

· Sea Freight

You will use the sea shipping mode especially when are shipping bulky cargo overseas from China.

COSCO Shipping Lane

• Rail Freight

You can also use railway transport your cargo from China through the railway line.

This is true especially for countries with railway connections with China.

• Air Freight

This is the fastest mode of shipping from China and often costs more in comparison to other modes.

Air China Plane

• Road Shipping Mode

You can also depend on road transport if destination has road connections with China.

Transporting cargo by road

How long Does it take to Ship from China?

The period it will take to ship your cargo from China will vary according to quite a number of factors.

Here is a table showing how long it would take to ship from China to your destination.

Which Factors Determine the Shipping Time from China?

When Shipping from China there are quite a number of factors that you have to consider when calculating time.

Here are the main factors that will affect the period of shipping from China.

· Mode of Shipping from China to your Destination

The faster the mode of shipping, the shorter the time it will take to ship from China.

Implying that air shipping mode is faster than the sea shipping mode thus will take less time.

· Distance between China to your Destination

The longer the distance between from your destination to China, the more time it takes to ship the cargo.

In this case, you have to consider the loading port as well as the destination port of the cargo when calculating time.

Shipping routes from China

· Route Taken by the Ship

There are routes that are smooth and will take you directly to your destination without wasting a lot of time.

There are, however, other routes that are quite challenging and stretched thus requires time to maneuver through.

· Season of Shipping

Well, there are periods when shipping from China is not recommended due to high cost as well as numerous delays.

Apart from that, sea shipping can also be tricky as you have to consider the roughness of the sea during particular seasons.

How can you Reduce Shipping Time from China?

You can reduce the shipping time from China by using express shipping methods.

This involves using shipping providers known as drop shippers such as AliExpress.

This will only work if you are shopping for goods that are easy to find and will not take time to get.

Apart from that, you can also depend on other modes of reducing shipping time such as:

· Having Local Warehouses

You can have warehouses at almost every location of the origin country thus allowing you to get cargo faster.

· Avoid Ambitious Timelines

You should also forget about making unrealistic promises especially on your customers thus avoiding customer pressure.

· Manage Proper Carrier Relationships

In this case, if you have proper carrier relationships, you will reduce delays caused with ignorance.

Implying that your cargo will get first class handling even at the normal shipping rates.

· Using Intelligent Analytics

Using intelligent analytical tools will help you ship in advance before the official sale season actually begins.

How do you Estimate Shipping Time from China?

You can have a rough estimation on how long it will take to get your cargo to your destination.

This is possible only by using the shipping time calculator to estimate the shipping time from China.

In that case, you must have the following information:

• City of origin in China or loading port
• City of destination of the off-loading port

The shipping time calculator will give you the results based on the last 6 months shipping experience.

Apart from that, you will also have a range of time using different modes of transport.

How can you Save on Shipping Time from China During Chinese New Year?

You will experience a lot of delays in shipping your cargo to your destination especially during the Chinese New Year.

Well, to avoid all the delays, there are specific factors that you have to take under consideration.

Here are some tips to help you save on shipping time during the Chinese New Year.

· Securing Shipment in Advance

Here, you will have to secure your shipment of the cargo way before the Chinese holiday begins to affect normal flow.

Implying that you should avoid placing last minute orders on goods as you anticipate the Chinese holiday.

· Make Large Orders

Apart from that, you should also ensure that you make large orders that will carter for the Chinese holiday period.

This will give you ample time and space to do your business even if the Chinese holiday is underway.

· Choose Right Shipping Partner

Well, it can also pay off if you use the right shipping partners to handle your cargo during this period.

Such shipping partners have the capability of handling your cargo normally without the effect of the Chinese holiday.

What are the Implications of Skipping Shipping Time from China?

The main implication of skipping shipping time from China is the high cost of shipping.

You will have to pay more to have your cargo from China skip the usual shipping period from China.

Allowing your package to take more time means that it will have to go through the normal channel of shipping cargo.

This involves going through the system of reduced rates thus leading to numerous delays along the way.

If you are willing to carter for the implications of skipping time, you can charter and express shipping service.

This will definitely cost you a lot more than the normal shipping modes at reduced rates.

What can Cause Delay in Shipping Time from China?

Well, shipping your cargo from China to your destination does not have to go through all the delays.

In that case, you will have to pay more money that will eliminate all the barriers that usually cause delays.

In that case, the main underlying factor that causes delay is the amount of money you are willing to spend.

Implying that the more you are willing to pay more, the better the services you will get from shipping agents in China.

You will have the best mode of transport which is air transport to get your cargo to your destination in a shorter period.

Apart from that, you will have easy time going through the customs and clearance offices after paying the right fee.

How do you use Freight Shipping and Transit Time Calculator?

You can have a rough estimate of the LCL, FCL, Tracking and air freight time using the transit time calculator.

The freight shipping and transit time calculator has specific sections that you must fill to determine the shipping duration.

In that case, you will enter the following details to generate the right shipping period to your destination.

• City, or zip code of the loading port in China
• City, or zip code of the destination port
• Type of load

This will give you a range of time it would take to get your cargo to your destination from China.

You will, therefore, use this information to choose the mode of shipping that you will use for your cargo.

What’s more, you must know that this is an estimation and there might be delays or the cargo might arrive earlier.

As you can see, there are many variables that affect the shipping time from China.

It starts right from your supplier, clearing logistics, transportation, and holiday’s amongst others.

To make the entire process, seamless, you can consider working with a freight forwarder in China.

If you’re importing from China, probably, you could be worried how to play your suppliers or factories.

You can try T/T payment to China.

But, how do you avoid the risk of losing money?

Or how can you get the most from the T/T payment?

So, if you want to learn the tricks and tips for making T/T payments, read this guide.

What is T/T Payment?

T/T payment otherwise known as telegraphic transfers refers to an international, electronic money transfer method from the buyer’s bank to the seller’s bank.

What are the Benefits of T/T Payment to China?

The use of T/T payment in China has brought several benefits to both buyers and seller not excluding;

• To start with, a telegraphic transfer is one of the secure methods of transferring funds across different countries.

You will have to include a couple of your credentials and by so doing strong security is created.

• Telegraphic transfers are available in most major currencies.
• Simple to transact – Apart from it being secure, T/T payment is simple. All you have to do is get to your nearest service provider.

Make sure you have the recipient’s account number together with any other details required by your bank.

You will be required to fill in a form and that’s it.

• Efficient – Telegraphic transfer is widely embraced in most countries and this makes it effective for any manufacturer in China.

The manufacturer or supplier can transact funds with any trader or importer across the globe.

This in turn boosts their businesses.

• Higher transfer limit –T/T payment makes it easier for anyone to make large money transfers.

This is a plus especially for importers dealing with bulk purchases. In turn, China can increase trade among several importers from different countries.

• Quick – Within one to four business days, your funds will have already transferred to the recipient.

Remember, this might even take less than a day making it one of the quickest methods of transferring money.

These speed of your transaction depends on several factors such as distance, working hours, and holidays just to mention a few.

• Owing to the faster transfer rate of funds, T/T payment is less affected by fluctuations experienced in the international money market.
• In addition to that, T/T payment charges less for its services, therefore, making it one of the cheapest. This attracts several traders who in turn boost China’s economy.

Are there Disadvantages of making T/T Payment to China?

Payment process

In as much as T/T payment might seem quite advantageous, it has its drawbacks too which include;

• It’s one of the commonly used methods of payment by scammers and fraudsters.

This is probably due to its fast transaction speed.

Not only is this a risk for the supplier but also the buyer.

• On certain occasions, your transactions could take longer to be processed.
• A fee is always imposed by the bank for every transaction meaning your recipient will not receive the full amount.
• If by chance you happen to enter an incorrect account number, you cannot reverse the payment.

When should you use T/T Payment to China?

T/T payment is commonly used when paying Chinese suppliers.

All Chinese suppliers with a bank account have the T/T payment method option for their businesses.

Why do Chinese Suppliers use T/T Payment?

Chinese suppliers prefer the use of T/T payment owing to the following reasons;

• T/T payment is not only safe but also secure.
• Chinese suppliers need fast payment method and therefore T/T payment serves best.
• T/T payment has a higher transfer limit allowing Chinese suppliers to work efficiently with bulk buyers.
• In addition to that, T/T payment is easy to process for both the buyer and supplier.

How does T/T compare to other Methods of Payment in China?

There are several payment methods in China some of them including;

• PayPal
• Letter of Credit
• Visa Card
• MasterCard
• Online Bank Payment
• Western Union

As compared to other payment methods in China, T/T payment is processed by the bank.

The supplier gives out their bank details and the buyer presents all information to their bank.

Afterwards, the buyer’s bank performs the transaction to the supplier’s bank account through electronic means.

In addition to that, T/T payment has a higher transfer limit as compared to other payment methods.

This makes it the ideal choice for any bulk purchaser.

How do you make T/T Payment to China?

Making T/T payment to China is much simpler and faster than you think.

All you have to do is contact your bank and present to them your idea of transferring cash to a Chinese company.

You will be required to fill out a form.

Thereafter, make payments of the transfer money together with any other fee applicable.

Always ensure that you request your supplier to send the proforma invoice early enough.

Proforma invoice

This proforma invoice will include the supplier’s bank details which you will need when approaching your bank for the transfer of funds.

The whole process takes about two to four days depending on the distance between the two destinations and other factors.

Most importantly, always confirm that you are dealing with a company and not an individual.

Most scams happen as a result of sending money to individual accounts and it might take time before you discover that you have been scammed.

What is the Cost of T/T Payment to China?

The cost of T/T payment varies from one TT provider to the other.

Most banks will charge a fee of $30 which can as well be more or less depending on your provider and where they are located.

Averagely, the cost ranges from as low as $25 to as much as $50.

Remember, T/T payment involves funds being moved from one bank to the other until it arrives at the destination.

Therefore, the fee charged includes the total amount from all the banks your fund has passed through.

How do LC and T/T Payments to China compare?

As compared to the T/T payment, LC otherwise referred to as a letter of credit is more secure.

Letter of credit process

This is because you will be required to fill out extra information before transferring your funds.

With a letter of credit, you won’t need to deposit any amount to the supplier.

Therefore, your risks as a buyer are greatly reduced.

LC payment is made when certain conditions are met as compared to T/T payment which lacks such conditions.

How long does T/T Payment to China take to complete?

A complete T/T payment will take two to five working days to complete.

This highly depends on your bank and the distance between the two destinations.

Also, other factors such as public holidays might delay your payment.

How does T/T Payment to China and SWIFT Payment compare?

SWIFT payment is under T/T payment methods.

It facilitates T/T payment transaction by using special codes to transfer funds to the recipient’s bank account.

When doing a T/T payment, the funds are passed through various banks until they arrive at the destination.

These banks make up the SWIFT network.

Therefore, T/T process relies on the SWIFT system for the fast and efficient transfer of funds.

What is the Safest Payment Method when Importing from China?

Some of the safest payment methods when importing from China include; T/T, LC, escrow, debit or credit card, and PayPal.

With the T/T payment, the risks are shared between the supplier and the importer.

Nevertheless, Escrow protects both parties as money is withheld by a third party until you receive your goods.

How escrow works

In as much as the use of debit and credit cards is not fully embraced by most suppliers in China, it is a safer method for you as an importer.

Most Chinese suppliers also don’t advocate the use of PayPal owing to a couple of reasons.

The main one being it provides more protection to the importer than the supplier.

In as much as PayPal might be safer for you, also keep in mind that the fee charged depends on the size of your transaction.

The more your transaction the more fees you will pay.

Additionally, sorting disputes is difficult and you might end up losing.

A letter of credit is widely accepted by most suppliers owing to the lower risks involved.

However, LC is suitable for bulk buyers as compared to small scale importers.

It involves a lot of paperwork. As such, suppliers find it unsuitable or rather unworthy for transactions below $50,000.

Which Terms do you use during T/T Payment to China?

Some of the terms you will include during your T/T payment in China include;

• T/T in advance – T/T in advance is a payment method whereby payment needs to be made before the shipment of goods begins.
• T/T 30 days –T/Tin 30 days requires the importer to clear the full amount within 30 days after completion of the manufacturing processes.
• T/T at sight –With T/T at sight, the importer is required to pay a certain amount after receiving the bill of exchange.

How do you reduce the Risk of using T/T Payment to China?

Telegraphic transfers are one of the commonly used payment methods by scammers and fraudsters.

To avoid falling into such traps, here are some important tips you should consider.

• Never pay 100% of the amount–Most buyers find themselves in a fix after clearing every payment before the manufacturing begins and later getting delays in their shipment.

If you clear your entire bill, some suppliers will be hesitant to finish your order since they already have all the payments done.

In addition to that, paying the full amount might land you in greater problems if you happen to send it to the wrong account.

Therefore, always ensure that you only pay a partial deposit.

• Confirm company details before making any payments–Go through the company details and confirm that the supplier is the holder of the account.

This will save you from landing on scammers.

• Request for the profoma invoice in advance– By so doing you will be able to acquire more information about the supplier in good time.
• Pay for the samples to confirm that the account is the appropriate one. In as much as your supplier accepts to send free samples, you could choose to pay for them just so to confirm their bank details.

How do you Negotiate Better Payment Terms when Importing from China?

As with any buyer or importer, payment negotiation is key if you want to land at the best prices.

Most Chinese suppliers are always willing to negotiate on payment terms. To do so;

• First, find the right supplier – Not all suppliers are ready to negotiate on payment terms and therefore you need to identify the ones suitable for you.
• Establish a good relationship with your supplier – The best time to start building a good relationship with your supplier is when you are not in urgent need of them.

Make sure you communicate frequently, reply to calls, and text messages.

Keep in mind that the more you interact the more likely you are to easily negotiate on the payment terms with your supplier.

• Ensure that the payment terms are fair for both parties. It should provide a win-win solution. By so doing, you grant your supplier a better chance to offer you better payment terms.
• Ask for the most – Negotiation will involve lowering your prices or terms to meet at equilibrium and therefore you need to start higher.
• Understand the business language – Research well on your supplier’s business since this will help you explain to them how they will benefit from your proposal.

What are the Tips and Tricks about T/T Payment to China?

For you to have a successful T/T payment system to China, some tips and tricks will be of importance.

Have a look at them;

• Countercheck everything before you begin your transaction. Make sure that there are zero missing words and everything is accurately spelled.
• Companies with longer names should be written in the address 1 field.
• Always write your company name in English in the application form.
• Always request your supplier to send you the proforma invoice early enough.
• Never pay the full amount before the start of production as this may delay your order. This is because your supplier won’t prioritize your order since they already have the full amount at hand.
• Before making any down payment, always ensure that the supplier has a clear picture of what you want to be done. Failure to this might result in major losses.

Can you use T/T Payment to China when importing from Alibaba?

Yes, you can.

Apart from PayPal, and debit/credit card, T/T payment is one of the payment methods used in Alibaba.

However, you need to be extra careful as several fraudsters target T/T payment users on this platform.

Do thorough research about your supplier before beginning any form of transaction.

Is T/T Payment to China Safe and Secure?

T/T payment is fairly safe.

It provides little to no security for both the buyer and the supplier.

Therefore, you need to be keen when performing any transactions via T/T payment method.

Can you Ask for Refund after T/T Payment to China?

T/T Payment System

Yes, you can ask for a refund after making a T/T payment to China.

If you realize that you made a mistake in your transfer, be fast to inform your bank.

However, you need to do so before your funds get deposited into the recipient’s account. Otherwise, it might be difficult to get your refund.

It’s also worth pointing out that getting a refund might take long.

Which Factors Affect the Speed of T/T Payment to China?

The amount of time taken for your transaction to arrive at its destination will be influenced by a couple of factors. Here are some of them;

• Time differences – Sending money across different hemispheres might result in some delays as this also affects the working hours.
• Differences in currencies – Conversion of currencies from one country to the other might delay your transfer.
• Additional information– Sometimes banks might require you to verify certain information which might consume time leading to delays.
• Differences in business days – Business days vary from one country to the other. While in most countries business days are from Monday to Friday, some countries might have fewer business days.

This definitely would result in delays in your transaction.

• The country of destination – Some banks have not yet embraced the current trends in money transfer.

Some make use of old systems which are slower and therefore cause delays.

• Public holidays – During public holidays most if not all businesses remain closed. Sending money during such occasions would result in delays.
• Finally, note that some payment methods take longer to process than others.

Therefore, your transaction might be faster or slower depending on which one you choose.

How do you Verify Chinese Company before making T/T Payment to China?

Ensuring that you are dealing with a verified supplier is an important factor that every importer needs to consider.

This shouldn’t be a hassle anymore; here are some ways that you could easily verify Chinese company before embarking on your transaction.

• Ensure that the account details are for the company. Often, people get scammed by individuals purporting to be companies.

When dealing with a company, confirm that the account information belongs to the company and not an individual.

Company accounts have names such as Wenzhou Hengyi Bag Co. Ltd while individual accounts have names such as GU YU.

• Confirm that the location of the company corresponds with the location of the bank.

For instance, if you are sending payment to a company in Beijing, the bank should also be in the same locality, Beijing.

• Also, the company you have been dealing with should be the same company you should make the payment to.

Sometimes, suppliers might provide a different company name to make your payment and therefore you should exercise extra caution.

Are there Scams when making T/T Payment to China?

Yes, you might experience scams when making T/T payment to China.

To avoid getting into such a fix, always make sure that you have done proper research about your supplier.

Also, ensure that you are dealing with a verified supplier.

Which Details do you need to Make T/T Payment to China?

To make T/T payment to China, the following are some of the main details you should have;

• Recipient’s contact details
• Recipient’s bank account details (name, address, BIC/SWIFT code)
• Suppliers business info
• Amount to be transferred
• The currency of the payment

In case you Submit Wrong Details when making T/T Payment to China, What can you Do?

The first thing you can do is contact your bank and inform them about the mistake.

They will allow you to make corrections where necessary and thereafter correct in their system.

However, this might delay your payment.

Your bank will need to trace your transaction and you might also be required to spend additional money for this process depending on its complexity.

If a Supplier Cancels Order after making T/T Payment to China, What can you Do?

No need to worry much. If a supplier cancels your order, make a point of communicating with your bank as soon as possible.

If the money has already arrived at your supplier’s account, it can’t be reversed.

However, you can still liaise with your supplier and they will be in the best position to assist you in getting your payment back.

Can you make T/T Payment to China in Chinese Yuan?

Yes, you have an option to choose the type of currency you want to use when making T/T payment.

This can either be USD or Chinese Yuan.

Can you use T/T Payment on AliExpress?

Yes.

However, you need to observe the following:

• Beneficiary account number should start with (026…)
• Only make payment using USD
• For Boleto Payments, it will take about 7 business days for the payment to reflect
• Per single payment, the amount should be greater than or equal to 20USD

Which is the Best Way to Pay Chinese Suppliers?

There are several ways to pay your Chinese suppliers depending on your convenience.

Listed below are some payment methods you can use.

1) International Wire Transfer

International Wire transfer in simply bank to bank transfer.

It is the most commonly used method of payment as it also doubles up as proof of a supplier’s legitimacy.

Also, it is safer since banks do background checks before anyone open an account.

Additionally, this form of payment will reduce your risk.

For instance, you can instruct your bank to pay half of the money as deposit, and the remaining amount after your good has been inspected and shipped.

2) Telegraphic Transfer

It is also a bank-bank transfer, and is the most preferred method of payment by most Chinese suppliers due to the relatively low bank commissions.

Moreover, TT payment is an internationally used payment method that ensures quick and secure payments to the suppliers.

On the other hand, the risky nature of this payment method makes the suppliers prefer it only if they have done business with you previously.

Moreover, a slight mistake in filling out the required documentation may lead to the Chinese bank withholding the money.

This may result in in delay of payment, and consequently delayed delivery of you products.

3) Letters of Credit

If you have a large company and are looking to make large orders, which will involve high fees, you may find this payment method ideal.

Here, your bank will guarantee your supplier that you will make payment through a letter of credit.

However, you will have to pledge to your bank collateral.

In addition, the bank will include their fee in the letter of credit.

4) Escrow

This mode of payment involves a trusted third party, who receives the buyer’s payment, with some predetermined conditions.

If the conditions are met, for example the good is safely delivered to the buyer; the third party transfers the money to the seller.

When trading with the Chinese, Alibaba provides ‘Trade Assurance’, which is similar to Escrow services.

However, many Chinese suppliers do not use this payment method.

Also, for buyers, you will be restricted to only trade with suppliers listed in the Alibaba platform.

5) PayPal

At one point you may have used PayPal for your financial transactions.

PayPal is majorly used for individual transactions, for small orders, or when purchasing samples.

Despite being a fast financial transaction method, it is expensive as it charges a percentage of the amount being transferred, and a currency conversion fee.

Also, PayPal is less accepted in China.

Additionally, PayPal exempts buyers from charges, but charge the suppliers.

The suppliers in turn pass on the cost to you, increasing the amount you are to pay.

6) Transferwise

Transferwise is an internationally accepted mode of payment.

This method is quite simple to use.

You start by signing up, you pay in your local currency, enter your supplier’s bank details, and then your supplier receives his/her payment in his/her local currency.

7) Pay through Sourcing Agents

Presumably you are not in China when purchasing goods from a supplier.

If you hired the services of a sourcing agent to get you the best supplier, then you can also use the same agent to pay the supplier.

Also, if the sourcing agent is trustworthy, he/she may be an affordable option of paying your supplier as per the agreed terms.

8) Western Union

This is a global payment mechanism and is known to many.

But, maybe it is not the payment method you should use as it does not in real sense offer you any form of payment protection, and also has rather high charges.

Suppliers rarely transact using Western Union.

If a supplier requests that you pay via Western Union, then that might be a red flag.

Which Payment Terms do Chinese Suppliers use?

Some suppliers may tell you that there is only one payment term (100% pre-payment), do not fall victim.

There are various terms of payments.

Mostly, Chinese Suppliers use the below payment terms:

· 100% T/T Pre-payment

Newbies in the importing business usually fall prey to this payment term. It is not advisable to use this payment term.

It means that you pay the supplier the whole amount at once, even before production starts.

The con of using this type of payment term is that the supplier may delay your supply, send you substandard goods, or in the worst-case scenario, fail to send you the goods entirely.

After all, you already paid the full amount.

You, as the buyer, bear the full risk.

· 30% TT deposit, 70%TT payment after passing Quality Control inspection.

Using this term, to some extent, reduces risk to the buyer and the seller.

However, it is important to note that the 30% is a non-refundable deposit made to the seller.

As for the 70%, you make the payment immediately, your freight forwarder approves your shipment’s quality, and the products conform to your pre-determined criteria.

This implies that you have to hire the services of a trustworthy freight forwarder, or risk getting a substandard quality of what you had paid for.

· 20% TT deposit, 40-50% TT payment after both production and after Quality Control inspection, 30-40% TT after delivery to buyer’s location

Here is the real deal.

As opposed to the previous term, you still have the leverage on the supplier even after the QC inspection.

When your goods are being shipped, you still owe the supplier 30%.

You only pay the remaining 30% after the goods have safely arrived in the country and you have verified them yourself.

This term guarantees you quality products.

This term is highly recommendable if your supplier has agreed to it.

· 100% TT payment (2 months after shipment, with no deposit)

Though rarely found, this term is between buyers and suppliers who trust each other; and have or are planning to trade together for a long time.

This method is beneficial to you as the buyer, but it can limit you to only transact with one supplier.

· Letter of Credit (L/C)

If you are shipping many goods, say over 30,000 USD, L/C is most recommended.

Though not accepted by many suppliers, this payment term frees you from bearing liability.

Your bank liaises with the supplier’s bank, through lawyers from both banks, and work out a letter of credit for the goods you purchase.

However, you have to be ready to pay high bank fees and pledge collateral to the bank.

Importantly, all these payment terms are subject to the negotiation between you and the supplier.

Consequently, the terms may differ.

For example, you can give the supplier a down payment of even less than 30%.

Do Chinese Suppliers ask for Advance Payment?

Depending on the payment term you are using, you may be required to make an advanced payment in the form of a deposit.

Importantly, in some cases, the advance payment may be non-refundable.

In most cases, the advance payment is used in buying the materials used in the production of the goods you have ordered.

What does TT 30 Days Imply?

TT 30 days implies that TT payment is made 30 days after the bill of lading or the date of acceptance.

Commonly referred to as “Net 30”, the seller gives the buyer goods on credit, on the condition that the buyer will pay up the full amount within a 30 days’ time-frame.

This is inclusive of holidays and weekends.

Is T/T Payment Safe on Alibaba?

Telegraphic transfer payment is relatively safe on Alibaba.

Once you have enrolled yourself in Alibaba.com Payment Terms, you are only required to make an initial payment of about 30%, while the remaining 70% you will pay within 60days.

The time frame of 60 days gives you the leverage to pay the full amount after verifying the supplier’s goods shipped.

The small upfront payment and later payment of the remaining balance minimizes the buyer’s risk and ensures the security of T/T payment made.

Which is the Affordable Way to Pay Chinese Suppliers?

Chinese Suppliers attribute Telegraphic transfer payment opti

If you’re starting an eCommerce business or a professional in the industry, shipping is undoubtedly the most fundamental aspect.

Whether you want to ship to Amazon FBA or shipping from Alibaba or AliExpress, you need cost effective and seamless process.

This guide explores all the basic and advanced concepts on eCommerce shipping.

Keep reading to learn more.

What is Ecommerce Shipping?

It is the service, which suppliers, manufacturers, and vendors utilize to transport commodities bought from them to buyer’s delivery destination.

It incorporates necessary facilitation for ensuring the products purchased from online dealers are shipped to the customer within the agreed terms.

What are the Best Practices in Ecommerce Shipping?

The customer’s expectations are always high irrespective of what they purchase.

Appropriate practices in ecommerce shipping are thus essential in enhancing seamless shopping experience.

Some of these best practices include the following;

1) Assemble the Correct Team

You must find the right people to assist you in decision making in this business.

Bring into all the stakeholders within your organization into a conversation.

In essence, make each department in the organization to understand its role in relation to enhancing shipping experience.

2) Provide Free Shipping when you can

Free shipping

It can be one of the hardest practices to execute in ecommerce shipping.

You need to find a balance between lower profit margins for you or costly prices for your customers.

Nowadays, with the existing stiff competition, most customers expect free shipping.

Additionally, statistics are quite clear that most cart abandonment arises due to shipping costs.

Therefore, you just have to provide free shipping by adopting a working strategy.

Ideally, set a minimum amount, which the customer’s order must meet to get free shipping.

This model comes in handy in saving costs,mainly when shipping multiple small orders.

Additionally, it encourages shopper to spend more on your platform hence a win-win situation.

3) Make the Shipping Costs apparent at Checkout

Make sure the shipping cost is evident at the checkout, whether it’s free or based on a certain order quantity.

Integrate your system to enable the users to see the shipping charges added to the sub-total.

Customers hate surprises and can easily abandon the cart if they only see the costs at the end of process.

Therefore, let the customers know the charges for the order as they continue placing items in the cart.

It makes it easy for them to manage their expectations.

Shipping cost at checkout

4) Let the Buyers know Expected Date of Delivery

Integrate the system to enable the shopper to know the delivery estimate for the commodity.

This should be dependent on the date of their order as well as their preferred method of shipping.

Show them particularly at the check-out section.

Statistics show how shipping duration is a fundamental element in buyer’s shipping decision.

They want to know when they are likely to get the item to guide their purchasing decision.

It helps in providing them with necessary information hence unlikely to abandon their cart.

5) Always Update the Customers during Shipping Process

Ensure you have a system, which keeps on communicating with the buyers during the shipping process.

Provide notifications to the customers based on the status of their shipment.

It contributes significantly to a positive experience.

It also goes a long way in building trust since the customers stay informed throughout the process.

6) Take Responsibility whenever there is an Issue

At times packages get lost or damaged by the shipper.

The customer will hardly view it the same way.

Whenever a shipping problem arises, take full responsibility, and act on the issue immediately.

Confirm the tracking details of the shipment, and find out if more information were captured correctly.

Inquire from the carrier about the details and status of the consignment.

Follow it up until you resolve the matter.

You must maintain customer relations and satisfaction.

Arrange to replace and ship the item to the customer.

Never wait until the shipment is found or compensated to sort out the buyer.

These practices are vital in boosting customer experience rates, tapping in more of them, and converting most visitors to actual buyers.

Remember, the buyer’s journey ends the moment the package arrives at their address in good condition and timely.

And not necessarily at checkout and purchasing from your online outlet.

How much will Ecommerce Shipping from China Cost?

You have to factor in the following elements in determining the cost of ecommerce shipping from China;

· Distance from Country of Origin to Country of Destination

If you’re shipping a product from China, the cost will depend on the specific distance it covers.

Different carriers offer varying rates based on the distance between country of origin and destination.

Ideally, the shorter the distance, the cheaper the rates, and the longer the distance, the higher the shipping cost.

· Weight of the Package

The dimensional weight of the package considers its size to determine shipping cost.

Most couriers multiply the length, width, and height of the package and divide it by standard DIM advisor to get the weight.

Heavier packages are a bit costly to ship compared to relatively lightweight packages.

· Size of the Package

A bigger package will definitely occupy a larger space in the vessel and vice versa.

Therefore, a package with bigger dimensions will naturally be expensive compared to one with smaller dimensions.

· Mode of Ecommerce Shipping

You can choose air freight, trucking, rail freight, ocean freight, and express shipping as the modes of transporting shipments.

However, the rates vary based on numerous factors.

Express shipping is the most expensive mode of ecommerce shipping.

On the other hand, ocean freight is the cheapest means of ecommerce shipping.

You have to be particular when selecting the mode of shipping depends on your various demands and budget

· Insurance

There is need to make sure you buy an insurance cover for your shipment.

Most suppliers often use relatively cheap and substandard export packaging.

Buying an insurance cover guarantees compensation in case the consignment is damaged during transportation.

You can find a variety of affordable insurance providers for as low as 0.02% based on 110% of FOB rates.

In most cases, compensation claims are reasonably simple to make.

You merely need to provide sufficient evidence and a protocol listing value and quantity of damaged commodities.

· Handling Costs

It primarily refers to the chargeable amount pegged on time taken in the preparation, packaging, and loading of the order.

It is mostly associated with labor involved in the overall order fulfillment process.

The higher the number of touchpoints in order fulfillment process, the more expensive the handling costs.

And where there are a few touchpoints, the handling cost will be lower.

In all aspects, it is advisable to always use shipping calculators from the respective shipping service provider you’re seeking.

This tool helps you to compare pricing options of different players in this industry.

Some of the calculators you can use in comparing ecommerce shipping costs include the following;

Sample shipping calculator

• USPS – Shipping Calculator
• Hong Kong Post –Shipping Calculator
• China Post –Shipping Calculator
• Canada Post – Shipping Calculator
• TNT – Shipping Calculator
• UK Royal Mail – Shipping Calculator
• SF Express – Shipping Calculator
• Australia Post – Shipping Calculator
• UPS – Shipping Calculator
• FedEx – Shipping Calculator
• ePacket Shipping Cost

Also, you can consider other cheaper alternatives such as ePacket shipping from China.

In fact, if you an ecommerce seller based in the U.S., you can easily ship your products from China, Hong Kong or Korea.

It is an affordable and faster ecommerce shipping option.

You can easily monitor the ePacket shipping process through the China post.

Remember, with low shipping cost, you can price all your products competitively.

In fact, it is perfect for drop shipping.

How do you Control Quality during Ecommerce Shipping?

Ecommerce shipping has made online shopping faster, relatively convenient, and more global than before.

As much as customers buy online, manufacturing and shipping processes must uphold high-quality standards.

The commodities you obtain from the supplier to the customer must never lose any quality along the way.

Some techniques of controlling and maintaining quality in ecommerce shipping include the following;

· Accurate Order Fulfillment

You have to counter-check the order upon arrival from the supplier or manufacturer.

Pull the order to confirm it is picked and sorted appropriately.

It helps to establish quality concerns such as detecting deformities or wrong packaging before the order gets to the customer.

Also, check whether or not the quantities specified in the order match what’s supposed to be shipped.

Ensure all items are included as per the specifications provided.

Accurate order fulfillment, of course, guarantees ultimate experience for the customer.

· Proper Packaging

Different commodities destined to various destinations require unique packaging.

An ideal way is to make sure the shipment is securely packaged using the right packaging materials.

You should never leave any chance for elements, which can cause damage to the consignment.

This should be irrespective of the distance, whether for local or international shipping.

Safeguard the items from weather and other physical elements to ensure they get to the customer while intact and in good shape.

· Accurate Labeling

Once the orders are received from respective suppliers, picked and packed, you have to label them accurately.

It is a critical element, which helps in preventing mis-shipping incidences where small orders are involved.

Labeling also becomes imperative in case of an order misplace or should it get lost.

It becomes easy to track, retrieve, and redirect it to the respective destination.

When labeling, you must verify the destination details such as customer’s name, address, and other contact information.

· Appointing the Right Team for the Task

You can choose to appoint an in-house team or third party agency to handle quality control in ecommerce shipping process.

Even so, the team must be competent and duteous in all aspects of quality control.

The team must know quality control protocols and should always offer best results.

A competent team will hasten the process and ensure quality is upheld throughout.

· Complying with Regulations

All products have specific regulations, which they have to conform to.

It could be health, safety, industry, or government directives.

You have to check the compliance as stipulated by the regulators.

Also, ensure the product hardly poses a threat safety of the handlers and users.

Confirm that the commodities also match up with the regulations of the industry and government.

Factor in the destination of the shipment, and all the possible checkpoints it may pass through.

It helps you to enforce necessary compliance is attained everywhere. And this improves quality of the service.

· Selecting Competent Courier Services

Once the items leave your warehouse, it is apparent you have little to no control of the quality.

However, the carrier you pick for the service plays a fundamental role in upholding the standards.

The trucks, vessels, or aircrafts the shipper uses should be in good condition always.

Where possible, ensure you liaise with the inspection, loading, and unloading units of the courier service provider.

It enables you to be in the loop during the shipping process.

What are the Goals of Ecommerce Shipping Strategy?

Here are the most common goals for shipping strategy in ecommerce;

Enhancing operational efficiency – always make sure the teams working on fulfillment of orders have the right details.

It helps in bettering the decisions regarding aspects of selecting, packing, and shipping orders.

Expanding the market – penetrate new terrains as a way of expanding the target market.

Alternatively, you can reach out to new areas or people who couldn’t access your services in the past.

Increasing conversions – make sure you provide the types of shipping alternatives and rates, which are in line with customer’s expectations.

Evidently, the rates and shipping options are great determinants of conversion rates.

Reducing costs–integrate the necessary incremental changes regarding fulfillment process and the services your company offers.

Incorporate other services as affiliates of your brand to help in reducing the overall operational cost.

But at the same time, you must maintain the service delivery is top-notch.

Increasing average order value – introduce promotions and programs encouraging users to purchase more.

For instance, you may offer free shipping on certain order limits or free expedited shipping at particular subsidized rates.

You can also choose to offer flat-rate shipping on certain commodities considered to be high-profit.

The bottom line is to add value to the existing services you are providing.

What are the Critical Considerations in Ecommerce Shipping?

The imperative considerations in this service delivery include the following;

1) Shipping Options

Express shipping

You must establish the most appropriate shipping carriers and services, which cater for unique demands.

When you manage your shipping options, it becomes easy to fascinate your clientele.

At the same time, it enables you to keep the costs in check.

Several couriers companies are available.

Don’t always consider the big-name shippers in all circumstances.

Some local courier companies offer more efficient services at cost-effective rates.

The shipping options you should look at include same-day delivery, free in-store pick up, free shipping, and LTL freight carriers, among others.

2) Product Size and Weight

Ensure you determine the size and weight differences of the consignments you are shipping.

It gives you an easy task to identify the ideal approach to undertake.

If you’re shipping different commodities, but with uniform size and weight, it becomes easier to establish the pricing.

Nonetheless, you have to ensure the weight and dimensions of the package are accurate.

It makes it easy for you to obtain the best rates from a carrier, which guarantees best ROI.

3) Delivery Destination

It falls into two categories; domestic and international.

But it is a crucial element to consider in ecommerce shipping.

For instance, you can always choose to free shipping or flat-rate shipping options for domestic shipments.

However, for international shipping, you may choose to set the rates depending on the zones.

An ideal strategy is to offer cheaper rates for areas within a closer zone and increase it as you radiate outer the zone.

The crucial considerations in ecommerce shipping revolve around the cost of the service.

It makes a great difference on whether or not the customer will abandon the cart.

You need to find the right balance on how to offer lower shipping rates and, at the same time, cover the costs.

Moreover, you must be able to offer as many shipping options in tandem with your customers’ demands.

How do you Set your Ecommerce Shipping Rates?

In ecommerce shipping, it’s imperative to choose your pricing strategy meticulously.

The fundamental financials of your business should guide you.

Here are some of the ways you can use to set your ecommerce shipping rates;

· When to Offer Free Shipping

It is proven as one of the most appropriate ways of reducing shopping cart abandonment when buying online.

However, shipping can never necessarily be free since there has to be a way of recovering the cost.

When offering free shipping, you can choose to offer a discount code to particular customers to enjoy free shipping.

The other strategy would be to inflate the price of the goods to cover the shipping costs.

In this case, it is the customer who, in turn, pays for shipping.

Better still, you can increase the cost of goods slightly, to cover the shipping costs partially.

In such a scenario, both the seller and buyer contribute to the shipping cost.

Additionally, you may choose to take care of the shipping costs from your profit margins.

· Charge Flat Rate for Shipping

It is also another popular option you can explore in setting your ecommerce shipping rates.

In this case, the best approach is to try and ensure you never undercharge or overcharge the buyers drastically.

This strategy always works fine when you have a reasonably standard product line of commodities with similar sizes and weights.

Even so, it can be a bit challenging and ineffective if you’re selling various products of different sizes and weights.

· Consider Real-Time Carrier Rate

It is another ideal option you may consider.

If possible, you may choose to integrate with various carriers in real-time.

It helps to generate live pricing as well as shipping alternatives from various carriers.

The essence of this option is it allows your customers to select and pay the particular service they require.

Tentatively, you can choose to use an ecommerce shipping calculator.

This tool guides you in finding the ideal ecommerce shipping rates for your consignment.

But you have to know how to use this calculator to get effective results.

Tj chinafreight, for instance, has an ecommerce shipping calculator, which you can easily access and use to set the rates.

What are the Product Packaging Tips in Ecommerce Shipping?

Packaging for ecommerce shipping

Product packaging creates a lasting impression and fantastic customer experience in ecommerce shipping.

It also influences the client’s purchasing decision and allows you to stand out in the prevailing stiff competition in this industry.

If you care about your brand, you need to devise and execute creative, safe, and effective product packaging ideas.

Here are some of the ideal tips you may consider for product packaging in ecommerce shipping;

· Select the Best Fit

The container must be the right size for the shipment.

Both internal and external packaging should fit tightly around the commodity.

It is vital first because tight fit guarantees the items can’t move around inside the container hence eliminating the cause of damage.

Secondly, it helps in reducing cost since the smaller the container, the cheaper the shipping rates.

Thirdly, right-sizing packaging helps in reducing the amount of void fill used for every package.

Thus, it lowers your total material cost.

Finally, customers find it happy to unbox a product, which is not excessively packaged.

· Use Unique Packaging Materials

Be conscious of the materials you are using for packaging the shipments for ecommerce shipping.

Look for different solutions for a single product.

Exploring the necessary unique packaging materials may as well go ahead and provide amazing cost benefits.

· Use Return-friendly Packaging

In ecommerce shipping, at times, returned products are inevitable.

Therefore, invest in return-friendly packaging solutions.

It can go a long way to help you save money in the long run.

Naturally, the initial packaging always guarantees protection, unlike the return one.

The customer will always choose any means to return the item to you and may not consider its safety.

Return-friendly packages maintain the safety of the product on its way back.

· Switch Rigid Boxes for a Flexible Mailer

Where possible, swap boxes for mailers.

The latter are often affordable, lightweight, and user-friendly.

For relatively fragile commodities, you can use bubble linings or fiber padding.

Mailers are also return-friendly since the customer will only use a second adhesive strip for returning the package.

·Know your Target Market

Package the items according to the market you are targeting.

Markets are different; hence they are fascinated by different elements.

Do your research to establish the end-users to enable you to design a cost-effective and sustainable packaging for ecommerce shipping.

· Leave a Lasting Impression

Product packaging for ecommerce shipping provides a unique way of interacting with customers.

It is an incredible aspect of creating a fantastic customer experience, especially during unwrapping.

Be strategic regarding the materials you use, messages you print, and anything else you include in the packaging.

It is the ideal way of creating a lasting impression on the customer.

Ensure you customize the packaging design where possible in a creative design.

· Use Customized Packing Tape

Using a custom packing tape is a great way of making your mark on ecommerce deliveries.

It makes your brand stand out and exhibit a high level of professionalism.

· Use Reusable Packages where Possible

Depending on the item you are shipping, you may choose to use a reusable container.

This is particular in products, which do not need or rely on bulky and protective packaging.

It makes shopping more sustainable, especially in instances where the customers are willing to return the containers by post.

What Customs Information do you need in Ecommerce Shipping?

Customs services offered – this involves customs support, standards as well as requirements.

Customs process – It entails restricted or prohibited goods, goods classification, and role of the customs agent.

Customs documents – They include a commercial invoice, profoma invoice, Bill of lading, C/O, insurance certificate, test report, and export license, among others.

Customs terminologies – You need to be conversant with a wide range of customs jargon, acronyms, and terms.

You can get this information from courier service provides such as FedEx, UPS, USPS, Aramex, AustraliaPostCustomsInformation, andDHLExpress, amongst others.

How do you Label Goods in Ecommerce Shipping?

In ecommerce shipping, each order requires a label.

It is a critical touchpoint between the vendor and the customer.

The label makes it apparent to tell your story.

Here arethe steps for labeling commodities on ecommerce shipping include the following;

Labelling goods for ecommerce shipping

1. Find the Shipping Labels

You can find the shipping labels from the shipping confirmation email of the customer.

Alternatively, you can retrieve it from the customer’s account on your platform.

2. Print Two Copies of the Shipping Labels

Once you retrieve the customer’s details from either their account or confirmation email, print the hard copies in duplicate.

One copy should be for the inside, whereas the other copy should be for the outside of the container.

Each label has a unique barcode, which is vital when it comes to tracking the commodity.

3. Attach the Shipping Labels

It is recommended to attach the shipping labels to the upper part of the container.

Fix the label on the container surface using a clear packing sleeve or a packing tape.

If you are using tape, remember to apply it over all the four edges of the label.

4. Double-check the Shipping Label

Confirm whether the shipping label is securely attached on the container surface.

It is a critical step, which determines successful delivery.

How do you use Fulfillment Warehouse in Ecommerce Shipping?

A fulfillment warehouse comes in handy in ecommerce shipping as follows;

Amazon Fulfillment warehouse

Receiving inventory – It is the place where products for distribution are received and stored awaiting further actions.

Storing inventory–The space is also used for keeping the stock received from manufacturers or suppliers.

The inventory can stay safe in this space until the moment of distribution.

Order processing – Fulfillment warehouse is also used in general order processing for ecommerce shipping.

This involves generating pick lists and picking commodities, kitting and arranging products, packing, and labeling shipments.

Managing returns – It also plays a pivotal role in organizing returns from customers.

Space is used for reconciling the stock returns for efficient inventory management.

Which Ecommerce Shipping Strategy should you Adopt?

They are quite a number, and the most appropriate one depends on your demands as well as the budget.

Some of the common option you can adopt in ecommerce shipping include;

· Same Day Delivery

It is one of the most efficient and requested services in ecommerce shipping.

The customer receives the order within 24 hours upon placing it.

This strategy is ideal since it improves customer satisfaction, reduces friction in a purchase decision, and enhances consumer confidence.

However, it requires extreme precision from the teams handling logistics.

It also requires huge initial investment capital to maintain reliability and efficiency.

· 2 Day Shipping

It refers to the strategy of shipping commodities from the shipping carrier to the customer within two business days.

It is expected of a seller to ship the product to the customer within two business days on all service levels.

· Overnight Shipping

It is a shipping option guaranteeing customers to receive their shipments the following business day upon placing the order.

It is relatively synonymous with one-day or next-day shipping.

Affordability of overnight shipping is dependent on different criteria such as carrier, distance, package dimensions, and weight, among others.

· Freight Shipping

It refers to the transportation of comparatively large consignments, be it domestically or internationally.

It is an ideal and cost-effective option for shipping cargo, which weighs over 100kgs.

Freight shipping includes several options, including LTL, FTL, intermodal and expedited.

It is a safer option and also enables you to work with some of the top-notch carriers across the world.

· Expedited Shipping

It refers to any shipping method, which promises the customer to receive the order faster than other standard shipping options.

This method often varies depending on carrier.

However, it tends to fall between overnight and two-day for most domestic deliveries.

It is an essential strategy in ecommerce shipping since it eliminates cart abandonment.

It also helps in building customer loyalty and meeting buyer’s expectations around ship time.

Which are the Ecommerce Shipping Service Providers you can Recommend?

Here are the recommended companies, which you may consider using for ecommerce shipping;

· DHL

It’s known as the market leader in ecommerce shipping business.

It has a large n