Sourcing from China is not difficult because of the factories — it is difficult because of the sequence. Buyers who lose money almost always did one of three things: paid before verifying, ordered before sampling, or accepted a quote that hid half the cost. This guide walks the whole process in the order you should actually do it.
1. Who you are really buying from
Every Chinese seller you meet is one of three things, and knowing which one changes how you negotiate:
- A factory (manufacturer). Owns the machines. Best price, lowest flexibility on small orders, and the least interest in handling export paperwork for a first-time buyer.
- A trading company. Buys from factories and resells. Charges 5–15% more, but usually communicates better, handles export documents, and will accept small orders. Most "factories" on B2B platforms are trading companies.
- A sourcing agent or procurement partner. Works for you, not for the factory. Charges a fee (typically 5–15% of order value, falling to 3–5% on large programmes) or a fixed monthly retainer, and handles verification, negotiation, inspection and consolidation. See what a sourcing agent does and what they charge.
None of these is automatically the right answer. The mistake is paying factory prices to a trading company, or expecting trading-company service from a factory. Ask directly: "Are you a manufacturer or a trading company?" Then ask for the business licence and compare the registered name with the company name you have been talking to.
2. What a landed unit actually costs
New buyers plan around the quoted product price and get surprised at the end. Build your model on landed cost instead:
| Cost item | Typical range | Notes |
|---|---|---|
| Product ex-works | 100% of quote | The number the factory gives you |
| Samples & tooling | $100–$800 | Usually refundable against a bulk order |
| Inspection | $200–$400 per man-day | Third-party QC before balance payment |
| Freight | 10–35% of goods value | Sea LCL is cheapest, air can exceed 100% |
| Duty & import VAT | 0–25% of CIF value | Depends on your HS code and country |
| Sourcing agent fee | 5–15% | Only if you use one; 3–5% on large orders |
A useful rule of thumb: your landed cost is usually 1.3 to 1.8 times the factory quote once freight, duty and inspection are in. If your margin only works when landed cost equals the factory price, the product is not viable yet. Our landed cost breakdown takes each layer apart with worked examples.
3. The 9 steps, in order
- Write a real specification. Dimensions, materials, tolerances, colours, packaging, and the tests the product must pass. A photo is not a specification.
- Collect 3–5 quotes on the same spec. Quotes that come back 40% cheaper are usually a different product.
- Verify each supplier before discussing money — see our 8-step supplier verification checklist.
- Order samples from your top two. Pay for them; free samples rarely represent production quality.
- Negotiate price, MOQ and terms together. A factory that will not move on MOQ will often move on price.
- Sign a simple contract with spec, delivery date, packaging, inspection standard and payment schedule attached.
- Pay a deposit — typically 30% — against a proforma invoice, not against a personal bank account.
- Inspect before balance. The balance payment is your only real leverage. Use it. See how to pay a Chinese supplier safely for the milestone structures that keep it that way.
- Ship and clear customs. Confirm the Incoterm first: FOB, EXW or DDP changes who pays what.
4. Where to find suppliers (and where not to)
- B2B platforms (Alibaba, Made-in-China, Global Sources): fastest way to get quotes. Assume you are talking to trading companies until proven otherwise.
- 1688.com: China's domestic wholesale platform, lower prices, no export service, Chinese-only. Great for price benchmarking — see our guide to buying from 1688 as an overseas buyer for what it takes to buy there rather than just read it.
- Trade fairs (Canton Fair, Yiwu, product-specific shows): the fastest way to see 50 suppliers in two days and judge who is real — our Canton Fair buyer's guide covers dates, phases, badges and what to ask at each booth.
- Industrial clusters: furniture in Foshan, lighting in Zhongshan, ceramics in Chaozhou, auto parts in Guangzhou, bags in Guangzhou Huadu, garments in Dongguan. Buying in-cluster means better prices, better suppliers and cheaper freight.
- Where not to: random WhatsApp contacts from a Facebook group, and any supplier who approaches you first with an unusually low price.
5. Five mistakes that cost first-timers money
- Paying a deposit to a personal account. Always pay the company named on the business licence.
- Skipping inspection to save $300. A single container of unsellable goods costs far more. See our inspection service.
- Accepting a verbal spec. If it is not in the contract, it will not be in the goods.
- Choosing the cheapest quote. The cheapest quote is usually a different, lighter, thinner product. Compare unit weight and material grade, not just price.
- Underestimating duty and freight. Budget 30–80% on top of the factory price before you promise a retail price to anyone.
6. Realistic timeline and budget
For a first small order (one product, 500–2,000 units):
- Weeks 1–2: specification, quotes, supplier verification
- Weeks 2–4: samples, revisions, negotiation
- Weeks 4–8: production
- Weeks 8–9: inspection, balance payment, booking
- Weeks 9–13: sea freight and customs clearance
So roughly 3 to 4 months from idea to goods in your warehouse. Air freight can cut the last stage to days, at 3–6× the cost. Plan cash flow for the deposit up front and the balance plus freight before the goods sail.
7. When to hire a sourcing agent
A sourcing partner pays for itself when any of these are true: you are ordering below factory MOQ and need consolidation, you cannot inspect goods yourself, your supplier only speaks Chinese, you are buying across several categories, or your time is worth more than the fee. For what the job actually covers and how fees are structured, see what a sourcing agent does and what they charge. That is exactly what we do — see how our service works or send us a sourcing brief.
Frequently asked questions
How much money do I need to start importing from China?
For a single product, most first orders land between $3,000 and $8,000 including samples, production, inspection and sea freight. Below about $2,000 the fixed costs (inspection, freight, duty) start to dominate and margins get thin.
Do I need a company to import from China?
Most countries allow individuals to import, but you usually need a tax ID or import licence to clear customs commercially and to reclaim VAT. Check with your local customs broker before you order.
How do I know the supplier is not going to disappear with my deposit?
Verify the business licence, pay only to the company account, keep the deposit at 30%, and stage the rest against inspection. Our guide on sourcing scams and payment protection covers this in detail.
Skip the trial and error
Tell us what you want to import. We will verify the factories, negotiate factory-direct pricing, inspect the goods before they ship, and manage the shipping paperwork for you.