MOQ, Samples & Pricing: Understanding B2B Tea Trade Terms
Understanding B2B trade terminology is essential for successful tea sourcing. This guide breaks down MOQ, sample policies, pricing structures, and negotiation strategies specifically for Fu Tea imports from China.
Understanding Minimum Order Quantity (MOQ)
MOQ is the smallest quantity a supplier will produce per order. For Fu Tea, MOQs typically range from 100kg to 500kg depending on the product type and supplier.
Typical MOQ Ranges for Fu Tea Products
| Product Type | Typical MOQ | Notes |
|---|---|---|
| Fu Brick Tea (500g bricks) | 200-500 bricks | Usually sold by pallet |
| Fu Cha Tuo (100g tuos) | 500-1,000 tuos | Machine-pressed, faster production |
| Loose Fu Tea (散茯) | 100-200kg | More flexible for mixed orders |
| Private Label Packaging | 500-1,000 units | Depends on print run size |
| Sample Orders | 1-5kg | Usually 3-5x regular price |
How to Negotiate MOQ
Many first-time buyers feel pressured by high MOQs. Here are proven strategies:
MOQ Negotiation Tactics
- Start with a smaller trial order — Ask for 50% of MOQ with 10-15% price premium
- Commit to repeat orders — Promise 3-4 orders per year in exchange for lower first-order MOQ
- Bundle products — Combine multiple SKUs to meet total value threshold
- Offer prepayment — 50% deposit shows commitment and reduces supplier risk
- Request off-season ordering — Suppliers are more flexible during low-demand periods
Sample Orders: Getting What You Need
Never place a production order without testing samples first. Here’s how sample ordering works:
- Sample Cost: Usually 3-5x the per-unit cost of bulk pricing
- Shipping: Buyer pays for courier (DHL/FedEx typically $30-80 for 1kg)
- Timeline: 3-7 days to prepare samples after payment
- Sample vs. Production: Request confirmation that samples come from the same batch/production line as bulk orders
B2B Tea Pricing Structures
Common Pricing Terms
| Term | Explanation | Who Pays |
|---|---|---|
| EXW (Ex Works) | Buyer picks up from factory | Buyer: freight, customs |
| FOB (Free on Board) | Seller delivers to Chinese port | Buyer: shipping, insurance |
| CIF (Cost, Insurance, Freight) | Seller pays to destination port | Buyer: import duties, clearance |
| DDP (Delivered Duty Paid) | Seller handles everything | Buyer: nothing extra |
For first-time importers, CIF to your destination port is often the best balance of cost and control. Learn more about shipping options in our logistics guide.
Payment Terms for B2B Tea
Standard payment terms in Chinese tea trade:
- 30% deposit, 70% before shipment — Most common for first orders
- 100% prepayment — Required by small factories or new buyers
- Letter of Credit (L/C) — For orders over $50,000 with established buyers
- NET 30-60 — Reserved for trusted long-term partners
💡 Pro Tip: Always pay via bank wire (T/T) to a company account, not a personal account. This creates a verifiable paper trail for disputes.
Hidden Costs to Budget
When calculating your true cost per unit, include:
- Product cost (FOB/CIF price)
- International shipping (typically $2-5/kg sea freight)
- Import duties (EU: 8.5% for fermented tea, US: 6.4%)
- Customs clearance fees ($200-500)
- Lab testing for import clearance ($300-800)
- Local warehousing and last-mile delivery
Action Checklist
- Request MOQ breakdown by product type before negotiations
- Order 2-3 samples from different suppliers to compare quality
- Clarify whichIncoterms applies to quoted prices
- Get all pricing in writing with validity period
- Budget 20-30% above quoted price for total landed cost
- Negotiate payment terms based on order size and relationship
Need help calculating your landed costs for Fu Tea imports? Our team can provide detailed cost estimates based on your specific requirements.
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