How to Calculate Total Landed Cost When Importing from China

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.

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.