Payment terms follow a standard progression in China. Transaction 1: 30% deposit, 70% before shipment. Transaction 2-3: 30% deposit, 70% against B/L copy. After 1 year: possible 30% deposit, 70% 30 days after B/L date. L/C at sight is standard for large transactions. Never jump ahead in this progression — let the track record justify each step. Trust is earned through consistent performance.
English communication ability often correlates with export maturity but is not a substitute for it. A factory with poor English but good systems and a reliable trading partner can outperform a factory with fluent English but weak processes. Judge suppliers on their systems and track record, not on their language skills. The best factories invest in quality control, not just sales teams.
Total landed cost is the only number that matters when comparing Chinese suppliers. It includes: factory price, inland freight to port, export customs fees, ocean/air freight, insurance, import duties, VAT, customs brokerage, and inland freight from destination port. A $10 product FOB can easily become $14-16 landed. Most first-time importers forget at least three cost components and end up with negative margins.
MOQ negotiation is an art. Chinese factories quote high MOQs because they're designed for mass production efficiency. To negotiate lower MOQs, offer: (1) a slightly higher unit price, (2) a commitment to repeat orders totaling the annual MOQ, (3) payment of mold/tooling costs upfront, or (4) acceptance of the factory's standard raw material sizes. The most effective approach combines multiple offers.