You found a supplier. They quoted $5 per unit. You calculate your margin and it looks great. Then the invoices start arriving β€” and your $5 unit somehow becomes $9.50 by the time it reaches your warehouse.

Welcome to the hidden costs of China sourcing. After 20 years, we have seen them all. Here they are β€” and how to dodge them.

1. Tooling and Mold Fees

If your product needs custom tooling β€” injection molds, stamping dies, custom jigs β€” the factory charges you for it. A mold for a simple plastic part costs $500-2,000. For complex products like electronics housings, molds can run $5,000-20,000.

How to avoid: Ask upfront whether tooling is included in the unit price or charged separately. Negotiate mold ownership β€” you paid for it, you own it. If you switch factories later, you can take the mold with you. And never pay 100% upfront for tooling. 50% deposit, 50% after approved sample is standard.

2. Sample and Prototype Fees

Factories charge for samples. A single sample might cost $50-200 plus shipping. Multiply that by 3-5 rounds of revisions and you are looking at a real cost.

How to avoid: Ask if the sample fee is refundable against your production order. Most factories agree to this. If you are comparing multiple suppliers, budget for sample costs β€” do not skip this step to save money. Bad samples catch problems early.

3. Packaging Costs

The unit price often excludes packaging beyond a plain polybag. Custom packaging β€” branded boxes, hang tags, barcodes, retail-ready packaging β€” adds $0.20-2.00 per unit depending on complexity.

How to avoid: Discuss packaging specifications in detail before finalizing the order. Get packaging samples. Factor packaging into your landed cost calculation from day one.

4. Quality Control and Inspection Fees

A proper third-party QC inspection costs $250-400 per day in China. For a typical order, you want at least an initial inspection (during production) and a final random inspection (before shipping). That is $500-800.

How to avoid: Do not skip QC to save money β€” that is false economy. One bad shipment costs far more than a lifetime of inspections. Use a sourcing agent who includes QC in their service (we do).

5. Shipping and Freight Charges

This is the biggest hidden cost. Factory quotes are typically EXW (Ex-Works) β€” you pay to move goods from factory to port. Then there is: origin charges (documentation, handling, customs export), ocean/air freight, destination charges (customs clearance, port fees, delivery), and import duties and taxes in your country.

A real example: $5,000 in goods + $800 origin charges + $2,200 ocean freight + $1,200 destination charges + $900 import duties = $10,100 total. The "$5,000 order" actually costs $10,100 landed.

How to avoid: Always ask for a door-to-door quote. Understand Incoterms. FOB means the factory covers costs to the port. CIF includes freight to destination port. DDP includes everything β€” freight, customs, duties, delivery to your door. We provide all-inclusive DDP quotes so you know the real price.

6. Customs Duties and Import Taxes

Every country charges duties on imports. Rates vary by product category β€” electronics might be 0-5%, textiles 10-20%, and some products face anti-dumping duties of 50-200%.

How to avoid: Check your country is tariff schedule before ordering. Use the correct HS (Harmonized System) code. We help classify your products correctly to minimize duties legally.

7. Warehouse and Storage Fees

If your goods arrive before you are ready to receive them, you pay storage. Ports charge $50-200 per day after the free period (typically 3-7 days). Warehouses charge $10-30 per pallet per month.

How to avoid: Coordinate delivery timing. We offer warehousing in Guangzhou β€” we can hold your goods and ship them when you are ready.

8. Payment Fees

Wire transfers cost $25-50 each. Currency conversion loses 2-4% with most banks. Letters of credit cost $200-500. PayPal charges 4-5% for international transactions.

How to avoid: Use Wise (formerly TransferWise) or similar services for better exchange rates. Consolidate payments β€” one large transfer costs less than multiple small ones.

9. Certification and Compliance Costs

CE, FCC, RoHS, FDA β€” certifications cost money (see our certifications guide). Budget $500-2,000 for standard certifications.

How to avoid: Verify whether your supplier already has valid certifications for your product. If they do, you might not need new testing β€” but verify independently.

10. Defects and Returns

Every production run has some defect rate β€” typically 1-3% for good factories, 5-10% for poor ones. A $10,000 order with 3% defects means $300 in unsellable product.

How to avoid: QC inspections reduce defects to under 1%. Include spare units (5-10% extra) in your order for warranty replacements. It is cheaper than air-shipping individual replacements later.

The Bottom Line

The factory price is just the starting point. A proper landed cost calculation includes all 10 of these factors. Most importers underestimate their true cost by 30-50% on their first order.

We calculate landed costs for every client before you commit. No surprises. No hidden fees. Get a real landed cost estimate β†’