Landed cost math every China buyer should run before signing a PO

Thu, 14 May 2026 00:00:00 +0000

The factory sent a quote that looks 40% below your current supplier. Before you celebrate, run landed cost math—or you will discover the gap in QC rework, air freight panic, and chargebacks.

The formula (simplified)

Landed cost per unit ≈

(Factory unit price + QC + packaging + inland China logistics + international freight + duties/taxes + defect reserve) ÷ sellable units

Line items buyers forget

Cost bucket	Why it matters
MOQ overbuy	3,000 units when you sell 200/month ties up cash for 15 months
PSI & rework	Cheap units that fail inspection still cost handling time
Branded packaging	Mailers and inserts are marketing—not optional for D2C
Last-mile speed	Air freight fixes a late factory but kills margin
Defect reserve	Plan 1–3% write-off even with good QC

How Tendlyn uses this in sourcing

We quote delivered-to-warehouse or DDP-style scenarios when clients share target markets—so you compare suppliers on outcome, not factory FOB alone.

The 12-point factory audit checklist every overseas buyer needs

Fri, 08 May 2026 00:00:00 +0000

Overseas buyers lose months—and sometimes entire product lines—when a “factory” turns out to be a trading desk or a facility that cannot hit quoted MOQs. Tendlyn’s on-site audits follow a 12-point checklist before any PO is signed.

What we verify on the ground

Business registration — legal entity matches export documentation.
Production capacity — line count, shifts, and realistic throughput vs. your volume.
Equipment inventory — machines match the SKU category you are buying.
QC station — incoming, in-process, and outbound checkpoints exist and are staffed.
Sample room — retained units and revision history for traceability.
Export history — reference buyers and destination markets, not just screenshots.
Certification wall — CE, RoHS, ISO, or category-specific certs with valid dates.
Sub-supplier map — who actually makes critical components.
Labor & ethics snapshot — basic social compliance signals for brand risk.
Financial stability — red flags that predict mid-production ghosting.
Communication layer — English-capable engineering contact, not just sales chat.
Pilot readiness — sample lead time, tooling deposits, and revision policy in writing.

Why this matters for D2C brands

When you dropship blind, you inherit every factory lie your supplier never corrected. An independent audit gives you negotiation leverage, realistic lead times, and a paper trail if disputes arise.