How to Place a Safe First Order with a New Chinese Supplier
A structured first order — trial quantity, milestone payments, escrow and documented specs — is the cheapest insurance against losing your deposit to a supplier you barely know.
The first order is when you are most exposed: you have not verified the supplier in practice, and you are being asked to send money to a company you have never dealt with. A structured first order reduces that exposure to something you can survive if it goes wrong.
Start small, on purpose
Resist the volume discount on the first order. Place a trial order large enough to test the supplier's production, quality and communication, but small enough that losing it would not hurt your business. The point of the first order is information, not a full container at the lowest unit price.
Tie payment to milestones, not trust
- A common structure is 30/70 T/T: about 30% deposit to start production, 70% against a copy of the bill of lading or before shipment.
- For larger orders, a letter of credit shifts the payment risk to the banks and only pays against compliant shipping documents.
- For small or first-time orders, a third-party escrow or a platform guarantee such as Alibaba Trade Assurance holds the money until the goods arrive as described.
Put the deal in writing before you pay
- Product specification and quality standard, referencing the approved golden sample.
- Price, currency and the exact payment milestones.
- Delivery date and a penalty or remedy for late delivery.
- Who pays for inspection, and the right to reject or claim for non-conforming goods.
Verify, then verify the verification
Before the deposit leaves your account, confirm the legal entity you are paying: the business-licence name, the bank account holder and the contract party must be the same name. Check the company's registration and any litigation records, and confirm the factory is real — a video call or a third-party audit beats a website. A mismatch between any of these names is the single most common sign of a scam.
A supplier that demands 100% payment before production, or asks you to pay into a personal or unrelated account, has given you the clearest possible reason to walk away.
This content is general information to help you source from China safely. It is not legal advice. For a specific contract or dispute, consult a licensed attorney.
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