UK wholesale price vs China landed cost
Use products you already buy to compare cost per usable unit at the same delivery address. Match specification and packaging, then add setup, stock holding and internal work to the import option. Check first-order cash separately from repeat-order savings. Cambridge China Bridge can review the benchmark with its own staff in China.
Start with what you actually buy
Choose a small selection of repeat-purchase products with known demand and accessible specifications. Gather recent invoices, delivery charges, rebates, credit notes, order quantities and payment terms. Record the usable quantity received and the delivery address. Use the price you actually pay after agreed adjustments, rather than the wholesaler's catalogue price.
Keep each product separate so savings on a strong candidate do not hide a poor candidate. Record what the current supplier provides: local stock, smaller call-offs, credit, replacement handling or packaging work. Our sourcing route comparison explains the broader differences; this benchmark puts a value on the services your business currently uses.
Match the product and the delivery scope
Give the factory the same material, dimensions, performance requirements, variant mix, accessories and packaging as your current purchase. Include barcodes, instructions, carton arrangements and the delivery postcode. Approve a sample against that brief. A similar photograph is insufficient evidence of an equivalent product.
Use the fields below for each product. Compare the same usable demand over the same planning period, while showing each route's actual order size and delivery pattern. If importing requires a larger purchase, retain the excess stock in the comparison. Keep exclusions marked as unresolved. The supplier quote guide explains how to obtain written clarification.
| Comparison field | Current UK purchase | Proposed China purchase |
|---|---|---|
| Product and packaging | Current specification and pack contents | Matched specification, with deviations recorded |
| Usable quantity | Accepted units after defects and credits | Expected accepted units, with allowance explained |
| Delivery | Actual charges and receiving arrangements | Quoted scope through delivery and unloading |
| Ordering pattern | Call-off quantities and replenishment pattern | Purchase batch, arrival pattern and excess stock |
| Payment and support | Credit terms and replacement handling | Payment stages and agreed remedy costs |
Separate delivered cost, setup and cash
Build the China delivered cost from goods, packaging, checks, freight, insurance, applicable duty, clearance and delivery. Include receiving or repacking work where needed, without counting charges already included in the quote again. Use the landed-price guide for the detailed cost layers. Use the same VAT treatment on both sides: keep recoverable VAT outside the cost comparison and retain unrecoverable VAT. Import VAT recovery remains subject to the normal rules.
Show samples, tooling, artwork, testing and supplier onboarding separately. Record the full first-order cash commitment, then allocate setup costs only across a repeat volume your purchasing history supports. Confirm which charges recur. Keep this allocation out of the repeat-order invoice estimate so the model distinguishes cash payments from allocated costs.
Price the stock and work you take on
Map when payments leave the business, when stock arrives and when it is used or sold. Compare that with your wholesaler's credit and replenishment pattern. Add the extra financing, storage, handling and insurance costs supported by your own records or quotations. Allow for slow-moving variants, damaged units and likely markdowns. Do not treat goods sitting in the warehouse as savings already earned.
Include the staff time needed for specifications, sample approval, shipment coordination, receiving checks and defect resolution. Run a cautious case with slower sales, less favourable freight or currency, and more rejected stock. Change the relevant assumptions explicitly. If the saving disappears under conditions your business considers plausible, retain the wholesale route or test a narrower product selection.
Make a repeat-order decision
Compare the current route's total cost per usable unit with the import route's delivered cost plus allocated setup, stock holding and internal work. Show the first-order cash requirement beside the repeat-order result. Estimate setup recovery by dividing setup spending by the repeat-order saving per usable unit, after additional ongoing costs. If there is no positive saving, setup has no recovery point in that model. For channel buying limits, see target landed costs for wholesale and retail.
Prepare a product-level decision: retain the wholesaler, trial importing, or proceed subject to named checks. Use the sourcing business case guide to present assumptions and approval conditions. Send current purchase records, specifications, demand history and available China quotations to Cambridge China Bridge for a quote check. Its staff in China can help resolve supplier-side gaps before the comparison is treated as a buying decision.
Frequently asked questions
Is buying from China cheaper than a UK wholesaler?
It depends on matched delivered cost, usable quantities, setup, stock holding and your team's work. A lower factory price alone does not establish a saving.
Should I compare prices including VAT?
Use the same treatment for both routes. Keep recoverable VAT outside the cost comparison and include unrecoverable VAT. Track payment timing separately and confirm recovery for your business.
How do I include tooling in the comparison?
Show the full tooling payment in first-order cash. Allocate it across a supported repeat volume for the economic comparison, and confirm whether maintenance or further setup charges recur.
What should I send for a China cost comparison?
Send current invoices and credits, specifications, packaging details, usable quantities, repeat demand, payment terms and the delivery address. Include available factory quotes and their exclusions.