Commercial comparison · buyer guide
How to compare Chinese supplier quotes
The lowest unit price is often the least comparable number in the file. Normalize the product, quantity, delivery rule, tooling, packaging, testing, payment and timing before deciding which quotation is commercially stronger.
First
One specification revision
Then
One commercial comparison basis
Finally
One risk-adjusted decision
- Editorial status
- Source-checked buyer guide
- Last reviewed
- Prepared by
- AllForSourcing Editorial Desk
Research basis: ICC Incoterms 2020 material and current U.S. Customs and Border Protection valuation guidance, combined with a buyer-side quotation workflow.
Boundary: This guide does not select an Incoterms rule, customs value, tariff classification, duty rate, tax treatment, or freight route for a particular shipment.
Direct answer
Reject the comparison until the basis matches
If Supplier A quoted an EXW stock item at 5,000 units and Supplier B quoted a modified product with export packaging, testing and FOB delivery at 1,000 units, their unit prices do not describe the same purchase. Ask for revisions before ranking them. An unanswered field is not zero cost; it is an unknown.
Freeze these five inputs before requesting prices
- 01
Specification revision
Name the same drawings, materials, appearance, packaging and tests for every bidder. Require suppliers to list deviations.
- 02
Quantity scenarios
Ask for the same trial, target and scale quantities, not each supplier’s preferred MOQ alone.
- 03
Delivery rule + named place
Write the exact Incoterms rule, named place or port, and “Incoterms 2020.” “FOB China” is incomplete.
- 04
Commercial inclusions
State what should be separated: tooling, samples, artwork, packaging, testing, inspection, spares and documents.
- 05
Required timing
Request sample lead time, production lead time, capacity assumptions and quote validity separately.
The quotation comparison matrix
Use one row per decision variable. Preserve the supplier’s wording in the evidence column and your normalized interpretation in a separate column.
| Field | Supplier answer | Normalize as | Decision risk |
|---|---|---|---|
| Product + revision | Accepted, exception, or alternative | Same controlled specification | Different product hidden behind a lower price |
| Unit price | Currency and price break | Price at the same quantity and rule | Exchange, quantity or inclusion mismatch |
| MOQ | Per SKU, colour, material, pack or order | Cash commitment and inventory by variant | MOQ reappears in packaging or materials |
| Tooling | Price, life, cavities, maintenance, ownership | Amortized scenario + separate asset decision | Buyer pays but cannot move or retrieve tool |
| Packaging | Unit, inner, carton, label, pallet | Same pack-out and protection | Damage, relabelling or fulfilment cost omitted |
| Testing + documents | Applicable standard, model, lab, report, frequency | Required evidence by destination market | Generic report priced as product compliance |
| Payment | Deposit, balance gate, beneficiary | Cash exposure by milestone | Cheap price paired with weak leverage |
| Lead time | From which approval or payment event | Calendar path to release | “30 days” starts after an undefined approval |
Do not use Incoterms as freight-price labels
Incoterms rules allocate defined delivery obligations, costs and risk between seller and buyer. They do not determine title, payment terms, product quality, customs classification or every contract issue.
EXW
The seller makes the goods available at the named place and has minimal obligations. ICC notes that EXW is primarily suitable for domestic trade and the seller is not obliged to clear export.
FCA
Often worth evaluating for containerized or multimodal shipments. The named delivery point matters, as does whether delivery occurs at the seller’s premises or another place.
FOB
ICC’s flowchart points FOB toward general cargo or bulk loaded directly onboard a vessel—not as the automatic label for every container shipment.
Ask your forwarder: which rule and named point fit the transport mode, export clearance, carrier handover and documents for this shipment? Then request every supplier to quote that same basis.
Separate purchase price, customs value and landed cost
They answer different questions. A supplier quote is a commercial offer. Customs valuation follows destination rules. Landed cost is your internal scenario for the full cost of getting saleable units to the required point.
A landed-cost scenario may need
- Goods and approved packaging
- Tooling or assist allocation
- Origin handling and export charges
- International freight and insurance
- Duty, tariff and other import charges
- Brokerage, port, examination and delivery
- Testing, inspection and rework allowance
- Damage, defect and delay assumptions
For U.S. imports, CBP’s current public guidance says declared value can require additions such as packing, assists, royalties, production costs, selling commissions and certain proceeds when applicable. Moulds, tools, artwork or design supplied by the buyer can require valuation analysis. Confirm treatment with a qualified customs professional rather than copying the supplier’s invoice total into a landed-cost model.
Make the final decision in two columns
Commercially normalized
- Comparable unit and one-time cost
- Cash commitment by quantity and payment stage
- Comparable delivery basis and timing
- Known landed-cost inputs
Evidence and execution risk
- Specification exceptions and unanswered questions
- Sample, capability and document evidence
- Change-control and inspection acceptance
- Entity, beneficiary and contract alignment
A supplier can be more expensive and still present the stronger commercial decision because the quote is complete, the product definition is understood, the payment gates preserve leverage, and the evidence gaps are smaller. Keep that conclusion visible rather than converting everything into an invented score.
Public source citations
ICC Incoterms 2020 checklist and flowcharts
iccwbo.org | official trade rules guidance | checked 2026-07-15
QUOTE-02ICC explanatory notes for EXW under Incoterms 2020
iccwbo.org | official trade rules guidance | checked 2026-07-15
QUOTE-03CBP: What value should be on the commercial invoice?
cbp.gov | official customs guidance | checked 2026-07-15
QUOTE-04CBP: Importing into the United States
cbp.gov | official importer guidance | checked 2026-07-15