The Complete Guide to Payment Terms When Importing from China

The sourcing cycle from initial contact to first shipment typically takes 3-6 months for new products. Month 1: supplier research and initial contact. Month 2: sample development and evaluation. Month 3: negotiation and order placement. Month 4: production (varies by product). Month 5: inspection and shipping. Month 6: delivery and evaluation. Plan your inventory accordingly and don't expect to compress this timeline without cutting corners.

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.