With a winning sample in hand, it's time to talk business. Negotiating with Chinese suppliers can feel intimidating, but remember: They want your business as much as you want a good deal. Here are the key points to hammer out:
Price and Minimum Order Quantity (MOQ)
Pricing for silymarin can vary widely based on purity, quantity, and supplier. As a general rule, higher purity (e.g., 90% vs. 60%) and larger orders will get you a lower per-kilogram price. MOQs can range from 1 kg for small suppliers to 100 kg or more for larger manufacturers. If you're just starting out, ask if they can accommodate a smaller "trial order" (e.g., 25 kg) to test the market before committing to a larger MOQ.
Don't be afraid to negotiate! Say something like, "I'm interested in 50 kg, but your MOQ is 100 kg. If I commit to 100 kg over the next 6 months, can we agree on a lower price per kg?" Many suppliers are flexible, especially if they see long-term potential in your partnership.
Payment Terms
Chinese suppliers typically offer a few payment options. The most common are:
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T/T (Telegraphic Transfer):
A wire transfer. Suppliers often ask for a 30% deposit upfront (to start production) and 70% upon completion (before shipping). This is standard for first-time orders.
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L/C (Letter of Credit):
A more secure option for large orders. Your bank guarantees payment to the supplier once they meet the terms (e.g., provide shipping documents). This protects both sides but can be more expensive and time-consuming.
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Alibaba Trade Assurance:
If ordering through Alibaba, use their Trade Assurance service. It holds your payment in escrow until you confirm receipt and satisfaction with the goods. Great for peace of mind with new suppliers.
Delivery Time and Incoterms
Clarify how long production will take (usually 2–4 weeks for silymarin) and agree on shipping terms using Incoterms. Incoterms (e.g., EXW, FOB, CIF) define who is responsible for costs like shipping, insurance, and customs clearance. For example:
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EXW (Ex Works):
You're responsible for everything from the supplier's factory onward (pickup, shipping, customs). Cheaper, but more work.
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FOB (Free on Board):
Supplier delivers the goods to the port and handles export customs. You pay for shipping from the port to your destination.
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CIF (Cost, Insurance, Freight):
Supplier covers shipping and insurance to your destination port. Easier, but often pricier than FOB.
For first-time importers, FOB is a good middle ground—it splits responsibilities fairly and keeps costs manageable.