What payment terms are standard for Chinese suppliers?

Standard terms: 30% deposit before production, 70% balance before shipment. Alternative terms: 50/50 split, full payment upfront (new relationships/small orders), payment after shipment (established relationships), and Letter of Credit (large orders). BSA GROUP negotiates favorable payment terms leveraging our supplier relationships and providing security for both parties.

What payment methods are safest?

Safest methods: Bank wire transfer (T/T) to company accounts, Letter of Credit (L/C) for large orders, Trade Assurance (Alibaba), PayPal for smaller amounts, and escrow services. Avoid: Western Union, MoneyGram, personal accounts, or full payment before production starts. BSA GROUP processes payments securely and provides accountability.

What is a Letter of Credit and when should I use it?

Letter of Credit (L/C) is a bank guarantee where payment releases upon meeting specific conditions (usually shipping documents). Use for: large orders ($50k+), new suppliers, high-risk countries, or when extra security is needed. Benefits: payment security, supplier confidence, and bank oversight. BSA GROUP assists with L/C requirements and documentation.

How can I protect my payment when ordering from China

Protect payments through: using trade assurance platforms, Letters of Credit for large orders, milestone-based payments tied to production stages, third-party inspection before final payment, working with verified suppliers, using trusted agents, maintaining clear contracts, and escrow services. BSA GROUP provides additional payment security and oversight.

What factors affect product pricing from Chinese suppliers?

Pricing factors: order quantity (higher volume = lower unit cost), material costs and availability, product complexity and manufacturing process, customization requirements, quality standards, seasonal demand fluctuations, currency exchange rates, supplier production capacity, and market competition. BSA GROUP analyzes all factors ensuring competitive pricing.

Why do prices vary so much between suppliers?

Price variations result from: factory vs trading company (factories are cheaper), different quality levels, varying material quality, production efficiency, overhead costs, profit margins, location (coastal vs inland), volume capabilities, and market positioning. BSA GROUP helps you understand pricing differences and select suppliers offering best value.

What is total landed cost and how do I calculate it?

Total landed cost includes: product cost, international shipping, customs duties and taxes, inspection and quality control, agent fees/commissions, currency conversion fees, insurance, warehousing/storage, domestic delivery, and compliance costs. BSA GROUP provides comprehensive landed cost breakdowns helping you price products profitably and make informed decisions.

Are there hidden costs I should know about?

Potential hidden costs: port fees and handling charges, customs brokerage fees, storage and demurrage (port delays), inspection fees, currency conversion fees, mold or tooling charges, sample costs, certification/compliance testing, packaging modifications, and logistics surcharges. BSA GROUP provides full cost transparency upfront avoiding surprises.

How do currency fluctuations affect my costs?

Currency fluctuations between your currency and Chinese Yuan (CNY) can impact costs ±5-10% or more. When CNY strengthens, costs increase; when weak, costs decrease. BSA GROUP advises on timing purchases strategically, negotiating USD pricing for stability, using forward contracts for large orders, and budgeting currency buffers.

Can I negotiate better prices with established relationships?

Yes, long-term relationships offer: better pricing (5-15% discounts), priority production scheduling, flexible MOQs, better payment terms, preferential treatment during busy seasons, and supplier investment in your success. BSA GROUP builds and manages these relationships on your behalf, securing ongoing pricing improvements and preferential treatment.