Buying China stock lots: checks before you pay
Buy a China stock lot only after matching its provenance and ownership evidence to the actual goods, separating grades, checking resale rights and inspecting the reserved stock. Calculate cost against saleable units, including sorting and repacking. For checks on the ground, speak to Cambridge China Bridge.
Establish why the stock is available
Ask whether the lot is an overrun, cancelled order, discontinued line, customer return or rejected batch. Request the original product specification, production and storage history, cancellation or rejection records, and a current inventory by model, colour, size and condition. Treat the seller's explanation as something to reconcile with records and physical stock.
Find out who manufactured the goods, who owns them, who stores them and who will invoice you. Ask for purchase invoices, payment records and any previous buyer's release of the stock. Match descriptions and batch identifiers across those documents. Warehouse access and photographs demonstrate possession; they do not settle an ownership dispute. Put unresolved ownership questions to a legal adviser before paying.
Separate ownership from resale rights
For branded or customer-specific goods, ask the relevant rights holder to confirm permission for your intended destination, sales channels and use of logos, artwork or packaging. Do not treat a factory's claim that goods are genuine as the end of the rights check. Ask about restrictions on cancelled orders and whether relabelling or removing branding has been authorised.
UK businesses importing or selling consumer products are responsible for their safety. Ask for product-specific compliance evidence matching the actual model, components and labels in the lot. Have the intended UK destination and product category reviewed before commitment. A visual inspection cannot establish everything that a safety assessment or laboratory test would need to establish.
Inspect each distinct group in the lot
Define grades through observable conditions rather than labels such as 'premium' or 'seconds'. Separate unused goods, returns, repaired items, incomplete units and damaged packaging. Record quantities by grade and variant, with photographs of acceptable and unacceptable examples. Different production runs or storage histories deserve separate inspection groups.
Require the inspector to choose cartons throughout the reserved stock and open them, rather than inspect seller-selected samples. Check functions, dimensions, accessories, shade differences, corrosion, mould and signs of use where relevant. Agree sorting or expanded checks when the stock is too mixed for the proposed sample to represent it. Use our inspection guide for inspection briefs and report comparison for the limits of supplier reports.
Check retail packing and protect the inspected lot
Open retail packs as well as shipping cartons. Check that contents match the box, accessories and instructions are present, barcodes identify the correct variant, and old customer labels will not confuse your receiving team. Look for crushed cartons, moisture damage and packaging that will need replacement. Obtain repacking materials and labour costs before deciding the goods are retail-ready.
Agree how the inspected stock will be identified, separated and reserved. Keep an approved inventory, carton markings and packing photographs, then reconcile them at loading. Put substitutions, shortages and changes of grade through written buyer approval. State who pays for sorting or repacking, and what happens if the final stock differs from the inspected lot.
Price the saleable stock and set a payment gate
Divide the total expected landed and preparation cost by the units you realistically expect to sell. Include sorting, testing, missing accessories, replacement packaging, storage and disposal of unusable goods. Allow for an awkward size or colour mix and customer returns. An advertised discount against an unverified original price is no basis for your margin. Our landed-price guide covers the wider cost calculation.
Before committing, record the exact lot, grade definitions, accepted inspection findings, ownership evidence, rights clearance and agreed remedy for discrepancies. Tie further payment to the agreed evidence and inspection outcome. If the seller cannot explain provenance, refuses access to the stock or will not resolve inconsistent records, hold the purchase. Read faulty-goods claims before relying on a remedy after arrival.
Frequently asked questions
How do I check who owns a China stock lot?
Ask for the purchase and payment trail, any previous buyer's release, and records matching the actual batch. Reconcile the seller, warehouse and invoicing party. Seek legal advice if ownership remains disputed or unclear.
Can I buy branded surplus stock from a factory?
Make rights clearance a purchase condition. Ask the relevant rights holder to confirm your destination, sales channels and branding use. A genuine product or factory invoice does not complete that check.
How should mixed stock lots be inspected?
Separate variants, production runs and condition grades. Let the inspector choose cartons across each group. Agree sorting or expanded checks where a sample cannot represent the mixed stock.
How do I know whether a stock lot is cheap?
Calculate total landed and preparation cost per expected saleable unit. Include sorting, testing, repacking, incomplete goods and likely returns. Compare with your achievable selling price, not the seller's claimed discount.