How do I compare Chinese supplier quotes fairly?
Give suppliers the same specification and compare the cost to the same delivery point, with the same checks and payment assumptions. The lowest unit price can be the most expensive usable order.
- Applies to
- Overseas small-business buyers planning a first or small commercial order from China.
Send one specification to everyone
Include product use, destination, materials, dimensions and tolerances, finish, packaging, quantity by variant, required evidence, target delivery date and the version of any drawing. Ask suppliers to list every proposed substitution.
Put the quotes side by side
| Quote line | Supplier A | Supplier B |
|---|---|---|
| Specification and quantity per variant | ||
| Unit price, currency and validity | ||
| Sample, tooling and setup charges | ||
| Delivery rule, named point and version | ||
| Transport and insurance included/excluded | ||
| Testing and inspection scope and cost | ||
| Destination charges and taxes to verify | ||
| Payment dates, fees and authorised payee | ||
| Production start condition and delivery plan | ||
| Defect remedy and cost of putting it right |
Do not compare an EXW unit price directly with a delivered price. Ask for each missing component or a fresh quote to the same point. Confirm who arranges export and import formalities; a convenient price label cannot resolve local restrictions.
Count usable units and cash timing
Divide the expected non-recoverable order cost by the number of units you can realistically sell. Separately list cash you must pay before selling, including any tax that may be recoverable later. Check recoverability locally; do not assume it.
Use a base case and a downside case: later arrival, some rejects, or less demand. Choose assumptions you can explain rather than an invented "standard defect allowance".
Ask about differences
A cheaper quote may have a different material, smaller carton, omitted test, different delivery point or different payment schedule. Ask for a written explanation before negotiating the number.
Risk signals
- A supplier will not state material or packaging.
- "All included" has no location or exclusions.
- The payment recipient changes when you ask for a formal order.
- A quote only works if goods are declared at an inaccurate value.
Official sources
- ICC: Incoterms 2020: basis for distinguishing delivery costs and responsibilities.
- ICC Academy: EXW versus DDP: practical limits on who can perform customs formalities. Read 2026-10-26.
The comparison worksheet is our purchasing method, not a mandatory official template.
Still uncertain
Live freight prices, applicable taxes, tests, supplier capacity and future exchange rates require order-specific confirmation.
Next step
Request a corrected comparable quote. Keep unresolved items visible instead of treating blanks as zero.
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