What is International Trade?
This guide explains What is International Trade? — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
Structured trade knowledge covering terms, processes, regulations, and practice.
This guide explains What is International Trade? — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains Export vs Import Basics — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains What is a Trading Company? — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains How the Export Process Works — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains Currency Risk Basics for Exporters — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains Role of a Freight Forwarder — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains Export Pricing Basics — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
This guide explains Roles in International Trade — concepts, use cases, workflow, mistakes, and best practices for import/export teams.
MOQ is the smallest quantity a factory will accept. Treat it as a cash-flow and packaging decision — not a take-it-or-leave-it number on a quotation.
Sample approval is the formal buyer sign-off on pre-production or golden samples. Without it, factories guess — and you argue after 5,000 pcs are made.
MOQ negotiation is a structured trade-off: quantity, surcharge, packaging complexity, and deposit timing. Aim for a pilot that factories can accept without destroying their setup economics.
A supplier scorecard scores quality, OTIF, responsiveness, compliance, and commercial reliability so sourcing decisions survive staff turnover.
Private label means products manufactured by a supplier but sold under the buyer’s brand. Control specs, packaging IP, QC gates, and exclusivity clauses — brand risk travels with the logo.
An RFI (Request for Information) collects capability, capacity, certifications, and commercial basics from potential suppliers. Use it to shortlist — not to award a PO.
An RFP (Request for Proposal) asks suppliers for solution proposals — approach, timeline, commercials, and risks — not only a unit price. Use it for complex or service-heavy buys.
A supplier audit inspects systems, capacity, quality, and compliance on site or remotely. Score findings, set corrective actions, and do not confuse a factory tour with an audit.
Quality control (QC) is the set of inspections and tests that verify goods meet agreed specs before payment and shipment release. Define AQL, sampling, and defect classes in writing.
Production capacity is the volume a factory can reliably output in a period under stated constraints. Validate with lines, shifts, bottleneck processes, and current order book — not wall posters.
An importer is the party responsible for bringing goods into a customs territory and meeting entry, duty, and regulatory obligations. Clarify importer of record before you promise DDP or shelf dates.
An exporter is the party that ships goods out of a customs territory and must meet export declaration, licensing, and document obligations. Know who the exporter of record is on every booking.
A trading company intermediates between buyers and factories: sourcing, consolidation, financing, or compliance support. Pay for real services — and verify the production source behind the PI.
A manufacturer produces goods using owned or controlled processes and facilities. Verify lines, tooling ownership, and subcontracting — “manufacturer” on a website is not evidence.
A distributor buys and resells in a territory, often holding stock and providing local support. Define exclusivity, pricing bands, and performance metrics before granting rights.
A wholesaler buys in bulk and resells to retailers or other businesses, typically with thinner margins and faster turns. Align MOQ, payment, and packaging for wholesale channels separately from retail.
A retailer sells to end consumers through stores or e-commerce. Export suppliers must meet retail packaging, labeling, OTIF, and chargeback rules — consumer returns become your quality KPI.
Global procurement sources goods/services across countries using structured RFIs/RFQs, risk controls, and landed-cost math. Chase value and resilience — not the lowest EXW screenshot.
Lead time is the calendar span from order confirmation (or deposit) to goods ready or delivered. Treat it as a cash-flow and launch-risk decision — not a single number on a quotation.
OEM means a factory manufactures to your design/specs (often your brand). You own the product definition; the factory owns production capacity. Decide OEM when brand control and margin matter more than speed-to-shelf of existing brands.
ODM means the factory designs the product; you typically brand and sell it. Faster than full OEM, with less tooling — but weaker exclusivity unless contracted.
A sample order validates quality, materials, and artwork before bulk cash is locked. Treat samples as a decision gate — not a free souvenir.
A factory audit verifies that a supplier can produce your quality, capacity, and compliance claims. Use it before large deposits — especially with new factories.
Supplier verification confirms you are paying a real, authorized trading party — not a broker spoofing a factory. Complete it before any deposit.
A trade quotation is a commercial offer with price, Incoterms, MOQ, lead time, and validity. Compare decision fields — not unit price alone.
A purchase order is the buyer’s formal request to buy under stated terms. In trade it must align with PI, Incoterms, and payment — or warehouses and banks diverge.
An RFQ (Request for Quotation) asks suppliers for comparable commercial offers. Vague RFQs create incomparable quotes and slow sourcing.