Every year, thousands of first-time importers start sourcing from China. Some build profitable businesses. Others lose money on bad orders, wrong factories, or unexpected customs fees. The difference isn't luck — it's having a clear process before you place your first order.

This guide covers what we've learned from managing 50,000+ orders across electronics, machinery, home goods, industrial equipment, and packaging. Each step is designed to reduce risk, not just save money.

1

Research Your Product Category and Regulations

Before contacting any supplier, you need to know your product's import requirements. Every country has different rules, and the cost of non-compliance can be higher than the product itself.

Key questions to answer upfront:
• Does your product require certification (CE, FCC, UL, FDA)?
• Are there import restrictions or tariffs on this category?
• What HS code applies, and what duty rate does it carry?
• Do you need special labeling or packaging for your target market?

China's manufacturing ecosystem covers virtually every industry, but not every factory is qualified to make products for your market. A toy factory producing for the EU needs EN71 compliance; a medical device factory needs ISO 13485. Don't skip this research — it determines which factories you should even talk to.

2

Find Potential Suppliers Through Multiple Channels

There are several ways to find Chinese suppliers, each with different trade-offs between speed and reliability:

ChannelBest forRisk levelTime required
Alibaba / Made-in-ChinaConsumer goods, standard productsMedium — verify badges1-2 weeks
Trade shows (Canton Fair, etc.)Seeing products in personLow — face-to-faceEvent schedule dependent
Industry referralsTrusted recommendationsLowVaries
Procurement operator (ANJU)Vetted factories, any industryLowest — pre-audited48h to first recommendation
LinkedIn / B2B networksIndustrial equipment, machineryMedium — verify claims2-4 weeks
⚠️ Watch out for trading companies posing as factories. Many suppliers on online platforms are middlemen. Ask for factory exterior photos, production floor videos, and business license registration number. A legitimate factory can provide all three in minutes.
3

Vet Every Factory Before You Engage

This is the most important step, and the one most first-time importers rush. A factory that looks good on Alibaba may have no quality system, no export experience, or insufficient capacity for your order size.

We recommend a minimum vetting process covering these areas:

Pro tip: Ask for a live video call walking through their production floor. A genuine factory can pick up the phone and show you their machines running. A trading company cannot.

If you're sourcing critical products (electronics with safety implications, medical devices, food-contact items), consider a professional factory audit. Our team has conducted 8,000+ audits across China's manufacturing regions and consistently finds that 30-40% of candidate factories fail on at least one critical criteria.

4

Request Detailed Quotations (RFQ)

Once you've shortlisted 3-5 qualified factories, send each a detailed RFQ (Request for Quotation). The more specific you are, the more comparable the quotes will be.

Your RFQ should include:

Resource: Use our RFQ checklist template to ensure you don't miss any critical specifications when requesting quotes.
5

Evaluate Quotations Beyond Price

The cheapest quote is rarely the best value. When comparing proposals, consider the full picture:

FactorWhy it matters
Unit priceObvious, but not the whole story
MOQ (minimum order quantity)Higher MOQ = more capital tied up, more risk
Payment terms30/70 is standard; 50/50 or 100% upfront is a red flag
Sample policyFree samples (you pay shipping) vs paid samples
Lead timeLonger lead time = delayed revenue, potential stockouts
QC historyAsk for their defect rate data from previous orders
Communication qualityEnglish proficiency and response time indicate professionalism

A factory priced 15% higher but with better inspection records and faster lead times may actually be the more profitable choice when you factor in rework costs and delayed shipments.

6

Order and Approve Pre-Production Samples

Never skip samples. Pre-production samples (PPS) are the only way to verify that the factory understands your specifications before they invest in mass production materials.

When reviewing samples:

⚠️ Common mistake: Some factories send "golden samples" — meticulously handcrafted units that look perfect but don't represent what mass production will deliver. The best way to catch this is to inspect during production (step 7), not just at the sample stage.
7

Arrange Third-Party Quality Inspection

This is the step that separates professional importers from amateurs. Never rely solely on the factory's own quality report. Always arrange an independent inspection.

Two critical inspection points:

At ANJU, our QC engineers are stationed in China's major manufacturing regions. We run detailed photo reports on every batch so you can visually verify quality before approving shipment. This approach reduced defect rates for our clients from 12% to under 2%.

Resource: Learn more about our QC inspection process.
8

Negotiate Payment Terms and Contracts

Standard payment terms with Chinese factories are 30% deposit to begin production, 70% balance before shipment. The deposit covers raw material costs; the balance is paid when the factory shows the completed order.

However, terms are negotiable. Factors that strengthen your position:

⚠️ Do not pay 100% upfront. This is the #1 red flag. Legitimate factories are accustomed to deposit + balance structures. Any supplier demanding full payment before production is either a scam or severely undercapitalized.
9

Choose the Right Shipping and Incoterms

Incoterms determine who pays for what and where risk transfers. The three most common for China imports:

IncotermBest forYou payFactory pays
FOB (Free on Board)Most importers — good balanceOcean freight, insurance, destination costsFactory-to-port transport, export clearance, loading
CIF (Cost, Insurance, Freight)New importers — simplerDestination port charges, customs, local deliveryEverything up to your destination port
EXW (Ex Works)Experienced importers with own freightEverything from factory gate onwardNothing beyond producing the goods

Recommended for first-time importers: FOB is the best balance of control and simplicity. You get one freight quote from a forwarder for the entire ocean leg, while the factory handles the complex part (getting goods to the port and through Chinese export customs).

10

Manage Customs Clearance and Final Delivery

The last mile of importing is where delays happen. To avoid customs holdups:

Resource: See our complete import guide for detailed customs documentation requirements.

Don't Navigate China Sourcing Alone

ANJU manages the entire procurement pipeline — factory vetting, negotiation, QC inspection, logistics, and delivery. Based in China with 500+ importers served across 30+ countries.

Get Your Free Sourcing Plan →

Frequently Asked Questions

For small to medium shipments, expect $1,000-$5,000 total landed cost including product MOQ, shipping, and customs. Most factories require MOQs of 500-1,000 units for standard products, though some are flexible with smaller trial orders.

In most countries, you need either an importer number or business registration to clear customs. For the US, an EIN (Employer Identification Number) and customs bond are typically required. Always check your country's import regulations before placing an order.

Sea freight takes 25-40 days port-to-port (longest time but lowest cost). Air freight takes 5-12 days. Rail freight (Europe-bound) takes 15-20 days. Add 1-2 weeks for customs clearance on either end.

MOQs vary by product category: standard consumer goods typically 500-2,000 units, electronics 200-1,000 units, industrial machinery 1-10 units, and custom packaging 5,000-10,000 units. Some factories offer lower MOQs for a premium per-unit price.

Yes, but with the right precautions: use a third-party inspection service for pre-shipment QC, verify factory credentials through trade assurance or audits, and start with a small trial order. Many importers successfully source from China without visiting, but factory vetting is non-negotiable.