Mistakes in purchasing equipment from China: how to avoid risks and save money

Purchasing equipment from China can be profitable, but many entrepreneurs face mistakes that lead to financial losses and delays. One of the main problems is insufficient verification of the supplier and its reputation. Without proper analysis, risks increase, and instead of saving, one can incur additional expenses. It’s important to carefully approach the selection of a partner, check their history, reviews, and the presence of necessary certificates.

📊 Fact: according to international associations, more than 30% of entrepreneurs faced problems during their first purchase of equipment from China. In this article, we will analyze TOP-10 mistakes to avoid.

📌 Mistake #1. Choosing a supplier only based on low price

Many entrepreneurs look for the cheapest options. However, a low price often hides:

• the use of cheap materials,
• outdated technologies,
• lack of service support.

💡 Tip: compare not only the price but also the terms of warranty, the manufacturer’s experience, and the presence of certificates.

📌 Mistake #2. Lack of supplier verification

Often, entrepreneurs trust the first supplier they find on Alibaba or 1688. This leads to deals with intermediaries or fraudsters.

🔑 What to do:

• verify the legal status of the company;
• order a factory audit;
• request licenses and certificates.

📊 Fact: a factory audit costs from $300 but helps avoid losses in the tens of thousands of dollars.

📌 Mistake #3. Lack of technical specifications

Some buyers limit themselves to general descriptions (“metal cutting machine”). As a result, the supplier sends equipment that is not suitable.

✅ Solution:

• prepare a detailed technical order (TO),
• specify dimensions, power, electrical network requirements,
• attach photos and diagrams.

📌 Mistake #4. Ignoring standards and certification

The products may not comply with Russian and European standards (GOST, CE, ISO).

⚠️ Risk: inability to import through customs and fines.

💡 Tip: clarify in advance the availability of international certificates and the possibility of registration in Russia.

📌 Mistake #5. Lack of warranties and service support

Some companies purchase equipment without warranty obligations.

📊 Fact: more than 20% of equipment supplied without warranty requires repairs in the first year of operation.

✅ Solution: specify a warranty in the contract (minimum of 12 months), clarify the terms of spare parts supply and service.

📌 Mistake #6. Full prepayment without insurance

Many newcomers agree to 100% prepayment. This is a risk of losing money with an unscrupulous supplier.

💡 Tips:

• use letters of credit or partial payment (30/70);
• engage transaction insurance.

📌 Mistake #7. Saving on product inspection

Skipping the equipment verification stage before shipment leads to receiving substandard or incomplete sets.

🔎 Solution:

• order inspection before shipment (Pre-Shipment Inspection);

record the process in photo and video reports.

📌 Mistake #8. Ignoring logistics and customs

When buying, it’s important to consider not only the price of the equipment but also the cost of delivery, customs duties, and fees.

📊 Example: delivery of a heavy machine can account for up to 30% of the purchase price.

✅ Solution: calculate the total cost “to the door” (CIF, DDP) in advance.

📌 Mistake #9. Underestimating cultural and language differences

Incorrect phrasing and lack of a translator lead to mistakes in negotiations.

💡 Tips:

• use professional translators;
• sign contracts in two languages (English/Chinese);

record all agreements in writing.

📌 Mistake #10. Lack of installation plan and staff training

Even high-quality equipment is useless without proper startup and training for employees.

✅ Solution:

• include installation and commissioning in the contract;
• order training from the manufacturer;

plan for spare parts.

🧭 Conclusion: how to avoid mistakes

Purchasing equipment from China can be a profitable strategy if typical mistakes are avoided. Main rules:

1. Verify suppliers.
2. Draft a clear technical task.
3. Consider logistics and certification.
4. Use financial protection tools.
5. Ensure service and training.

💡 Conclusion: a proper approach to selecting suppliers from China and the correct organization of the deal allow not only to reduce risks but also to save up to 30% of the budget.