A quote that looks like the best price on the page is not always the best deal. Wholesale jewelry buying hides a second layer of cost in the fine print: payment terms and shipping incoterms. One supplier's $4.00 FOB unit can end up cheaper than another's $3.70 EXW unit once freight, insurance, and customs are added. This guide breaks down the terms most small jewelry importers actually encounter, in plain language.
The two questions every quote must answer
Before comparing two suppliers, find out two things: when does the money leave your account, and who pays for the goods to reach your door. The first is the payment term. The second is the incoterm. Everything else—price, MOQ, lead time—is negotiated on top of those two.
Common payment terms, decoded
- T/T 100% in advance: You pay everything before production starts. Common for small first orders. Your risk is highest; the supplier's is lowest.
- T/T 30% deposit, 70% before shipment: The standard for many factories. You pay a deposit to start production and the balance when goods are ready but before they leave. This balances risk on both sides.
- Net 30 / Net 60: You receive goods first and pay within 30 or 60 days. Excellent for cash flow, but almost always reserved for established buyers. Build this ask into your supplier negotiations after a few clean reorders.
- Letter of credit (L/C): A bank guarantees payment. Used for larger orders. Safe but slow and bank-fee heavy; usually unnecessary below five figures.
- PayPal / card for samples: Normal for small test orders. Fees eat a few points, but the buyer protection is worth it for a first purchase.
Incoterms you will actually see
- EXW (Ex Works): You take responsibility the moment goods leave the factory door. You book the truck, the ocean freight, the insurance, and handle export clearance. Cheapest unit price, most work.
- FOB (Free On Board): The supplier handles getting the goods onto the ship and clearing export customs. You pay from the ship onward—ocean freight, insurance, and import customs. This is the most common and balanced term for small importers.
- CIF (Cost, Insurance, Freight): The supplier pays freight and insurance to your destination port. You handle import customs and local delivery. Simpler, but the supplier marks up freight, so compare carefully.
- DDP (Delivered Duty Paid): Door-to-door. The supplier handles everything, including import duties. Easiest for new buyers, but the least transparent on cost and often pricier overall.
Our deeper piece on shipping wholesale jewelry walks through freight methods and customs paperwork in more detail.
How this changes the real landed cost
Picture two identical rings. Supplier A quotes $3.50 EXW. Supplier B quotes $3.90 FOB. If freight and clearance add $0.50 per unit on the EXW deal and $0.20 on the FOB deal, Supplier B is cheaper per landed unit. Always ask for a landed-cost estimate, not just the unit price. Factor in your markup strategy on the landed cost, not the quote price, or your margins quietly shrink.
Cash flow planning for reorders
New buyers usually start with 100% advance or 30/70 terms. As you place repeat orders, ask for net terms on the second or third reorder. Even net 15 frees up enough cash to fund the next marketing push. Pair this with a smart approach to low MOQ wholesale so you are not tying up cash in stock you cannot move. Compare the whole model in our dropshipping vs. wholesale breakdown.
Red flags to watch for
A supplier that demands 100% advance with no deposit split on a first order, or refuses to share tracking once paid, is asking for trouble. Likewise, a quote that omits the incoterm is not complete—ask for it in writing. Small risks now become big disputes later, and jewelry disputes rarely resolve cleanly across borders.
Build a payment schedule you can survive
Even with great terms, a wholesale order ties up cash from the moment the deposit clears to the day the goods sell through. Plan for the lag: freight takes weeks, customs adds days, and your own customers will buy on their own schedule, not yours. A common mistake is placing three orders at once on net 30 and watching all three bills land in the same month. Stagger reorders so your outgoing payments do not stack. Keep a buffer equal to at least one order so a delayed shipment does not freeze the business.
Protect yourself when paying a new supplier
For a first order, split the difference: pay a modest deposit, but use a payment method with buyer protection. Never wire a large sum to a supplier you have not verified. Ask for video proof of production, tracked photos of the finished goods, and a confirmed shipping number before the balance is due. These small checks cost nothing and catch the rare bad actor before money leaves your account.
Price is the headline, but terms decide whether the deal is profitable. Compare landed cost, protect your cash flow, and negotiate payment terms into the relationship as it grows—not just the unit price.
For HS classification of jewellery in customs and export documentation, the WCO Harmonized System nomenclature is the authoritative nomenclature.
Authoritative References
For buyers who need to verify the technical and regulatory basis of this guide, the following independent institutions publish authoritative reference data:
- eCFR Title 19 - U.S. Customs regulations for tariff classification and import documentation.
- European Commission - EU customs, tariffs and trade compliance resources.
Frequently Asked Questions
How do I verify a factory before placing a bulk order?
Request a production video, business license, export records and a paid sample run. A factory that accepts a 50-piece test order is usually a real manufacturer.
What payment terms do you offer?
30% T/T deposit with the balance against the bill of lading. This protects both sides on first orders and can move to net terms after a track record.
What is your normal reject rate?
3–5% under 10x loupe inspection for cast and set pieces. Defective units are replaced free in the next shipment.
Where is the factory located?
Wuzhou, Guangxi, China—the core lab-grown and moissanite manufacturing cluster. Shipments go via Guangzhou or Shenzhen ports.
