{"id":148,"date":"2021-02-23T08:18:06","date_gmt":"2021-02-23T08:18:06","guid":{"rendered":"https:\/\/china-docshipper.uiart.io\/en\/2024\/12\/26\/sourcing-guide-from-china\/"},"modified":"2025-02-16T04:45:50","modified_gmt":"2025-02-16T04:45:50","slug":"sourcing-guide-china","status":"publish","type":"post","link":"https:\/\/china.docshipper.com\/en\/sourcing\/sourcing-guide-china\/","title":{"rendered":"Sourcing guide from China"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tIn sourcing from China there are many things new importers need to know and that is why in this article we introduce you to everything you need to know, from acronyms used in trade, how to find a good supplier, transportation methods and many more. things to be a good importer and improve your business.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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How do you communicate in the world of international trade?<\/h2>

In the world of international trade, the vocabulary of importers is very broad and they need to know all the terms and acronyms used and which are important with regard to pricing and contractual terms.<\/span><\/p>

In this paragraph we present all the important acronyms to know and that we will use for the rest of the article and therefore, if you need, just come back here.

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<\/span>All the acronyms you need to know<\/b><\/h3>

Here you are all the acronyms you need to know and their explanations:<\/span><\/p>

AQL<\/b> stands for <\/span>Acceptable Quality Limit<\/i><\/b>. And with this, the importers, using percentages, refer to the severity levels of the product defect and it is measured based on the defects that the importer agrees to and their severity.<\/span><\/p>

CBM<\/b> stands for <\/span>cubic meter<\/i><\/b> and is a known acronym but specifically for this sector it is important to know because it is used by importers, internationally, to measure freight cargo.<\/span><\/p>

MOQ<\/b> stands for <\/span>Minimum Order Quantity<\/i><\/b>. Is an acronym used by suppliers to indicate the minimum quantity of an order that the supplier can accept.<\/span><\/p>

FBA<\/b> stands for <\/span>Fulfillment By Amazon<\/i><\/b> and is a program in which Amazon takes care of the storage and fulfillment of goods and also takes care of customer service for third party sellers who can sell on Amazon.<\/span><\/p>

FCL<\/b> stands for <\/span>Full Container Load<\/i><\/b>. This means that the whole container is used to transport the goods and it is more convenient for importers to use this method because costs are added for incomplete containers and are inefficient.<\/span><\/p>

LCL<\/b> stands for <\/span>Less Than Full Container Load<\/i><\/b>. This acronym is used to indicate containers that are not full of goods and usually other LCL shipments are added to fill these containers<\/span><\/p>

QC<\/b> is the acronym for <\/span>Quality Control<\/i><\/b>. For the quality control of a product, inspections are carried out and this process includes the drafting of contracts and checklists.<\/span><\/p>

RFQ<\/b> stands for <\/span>Request For Quotation<\/i><\/b>. This request is made by importers to suppliers to ask them for an estimate on the costs of producing the goods.<\/span><\/p>

<\/span>Acronyms to know about incoterms<\/b><\/h4>

To refer to different pricing agreements between the supplier and the importer, there are many different <\/span>incoterms<\/i><\/b> to know and here are some important incoterm acronyms you need to know:<\/span><\/p>

EXW<\/b>, means <\/span>Ex Works<\/i><\/b> and is used when the importer has to pay the transport costs from the supplier because, in this case, once the goods are packed, the supplier no longer has any responsibility for them and therefore for all the rest must be handled by the importer.<\/span><\/p>

FOB<\/b> means <\/span>Free On Board<\/i><\/b><\/a>, this means that the supplier has responsibility for the goods only until they are loaded for shipment and therefore he is not responsible for the goods during and after the shipment.<\/span><\/p>

CIF<\/b> means <\/span>Cost, Insurance and Transportation<\/i><\/b> and is when the supplier has full legal responsibility for the goods from when they leave his warehouse until they are delivered to the port of destination.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Why Do Suppliers Set MOQs?<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The MOQ is set because suppliers prefer larger orders and if too small orders are placed, the<\/span> overhead is too expensive<\/span> and it is also set because the minimum order quantity is based on <\/span>component and raw material expenses<\/span> for the supplier and that they are purchased from their sub-suppliers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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<\/span>Some tips for new importers<\/b><\/h2>

New importers usually don’t know where to start, what to do and what not to do when they plan to start a new business. It\u2019s normal and in the following paragraphs we will give you all the important tips to know in order to better start your business and make it grow.

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<\/span>Which suppliers you shouldn\u2019t trust<\/b><\/h3>

The search for a new supplier is very important<\/span> because the<\/span><\/span> performance of your business depends on him \/ her<\/span> because the products you will sell to your customers will come directly from the supplier and therefore to guarantee an excellent service, with quality products and excellent times of shipping and delivery, it is important to have a long-term relationship of trust with the supplier.<\/span><\/p>

So, if you get offers from Chinese suppliers where they tell you that they <\/span>offer you great products, of excellent quality at unrealistic prices<\/span><\/i>, don’t trust them as it is definitely a scam and they try to tempt you and grab your attention, using false information. So we advise you to <\/span>take your time<\/span> and look for a good reliable supplier.

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<\/span>How long does it take to wait for the first order?<\/b><\/h3>

Regarding the duration of production, for the first order, the <\/span>normal production time must be multiplied by two or three<\/span><\/i> because, being the first order, before starting to produce the product, it is necessary to go through many stages which are the <\/span>definition of product projects<\/span> and packaging<\/span><\/span>, <\/span>obtaining a sample<\/span> of the product and <\/span>approving the final version<\/span>.<\/span><\/p>

Precisely for this reason, the <\/span>first order needs more time<\/span><\/i> than people expect.

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<\/span>What costs must not be forgotten?<\/b><\/h3>

There are many costs to take into account but some are often forgotten and surprised when you don’t get the profit margins because of these expenses.<\/span><\/p>

So, to always have a profit margin, remember the costs:<\/span><\/p>