Keeping the Costs of a Clothing Import Down
The direct answer: freight, duty and clearance are largely fixed, so the cost you can actually control is the lot choice. Better packing density, a consolidated shipment and a lot that does not need sorting will reduce your real cost more than negotiating the supplier price.
Part of the buyer journey: Start Small: First Business, First Lot, First Season — stage 5 of 8, with the other guides for this stage.
What you cannot control
Duty rates are set by classification and origin and are not negotiable. Ocean freight rates move with the market. Brokerage fees are usually fixed. These should be modelled, not negotiated.
The useful thing is to know them accurately in advance, because a cost you have modelled is a cost you can price for, and a cost you discovered at clearance is a crisis.
What you can control
Packing density. Cartons that are well filled and correctly dimensioned use less cube per garment, and cube is often the limiting factor on cost. Ask about carton dimensions and whether the lot can be compressed-packed or consolidated with other suppliers.
Consolidation is the other one. Shipping several suppliers in one container usually beats shipping each separately, and forwarders handle this routinely. It also spreads the fixed freight cost over more units.
Reducing the cost you never see
Sorting labour and unsellable units are the most commonly underestimated costs in this trade. A lot that needs three days of sorting has a hidden cost that is larger than most freight savings.
Buying pre-sorted lots, and buying lots whose grade percentage you trust, reduces this cost more than any negotiation you will have with a supplier.
What stocklots are available right now?
Reading is step one. Send your requirement and we will check the factory network for current options.
Buyer questions, answered
Is sea freight always cheaper than air?
Per unit, usually yes, by a wide margin. Per unit per month of capital tied up, the gap narrows considerably, and for small, fast-moving lots air can be the cheaper decision. The correct comparison is cost divided by how quickly you can sell.
How do I know the real duty rate before I order?
Ask a customs broker for a landed cost estimate using the correct classification of the goods, and get it in writing. Anyone who quotes a duty rate without asking about the fabric composition is guessing.
Can I reduce cost by buying larger quantities?
Somewhat, on freight, because the fixed component amortises. But a larger lot ties up more capital in categories you have not proven, so the apparent saving is often offset by slower turn. Bigger is only better once you know the turn rate.