A supplier’s unit price is only the starting point. Before turning a Canton Fair quotation into a purchase order, check what the offer includes, what it leaves out and how the shipment could affect your margin.
A profitable order depends on verified costs, an achievable selling price and execution. No spreadsheet, quotation comparison or software workflow can guarantee the result. This guide provides a practical way to make the assumptions visible before committing.
1. Make supplier quotations comparable
Two quotations can look similar while describing different purchases. Ask suppliers to confirm the same specification, packaging, quantity, quality expectations and delivery basis.
Record the quotation reference and date, currency, minimum order quantity, lead time, payment terms and validity period. Include the named place and version for the agreed Incoterms rule. Clarify tooling, samples, inspection, packing and other charges separately.
Keep missing information marked as unknown. A blank freight field is not a zero freight cost, and a low price is not a like-for-like comparison if one offer excludes required packaging.
Before shortlisting, check that the quantity meets MOQ and that the proposed lead time fits your purchasing window.
2. Build a landed-cost estimate with traceable assumptions
Move from the quoted goods value to the costs of getting the goods to the intended destination. Depending on the transaction, relevant items may include freight, insurance, inspection, handling, customs-related charges and inland delivery.
For every estimate, record the source, currency, date and whether it is confirmed or provisional. Use quantities actually expected to ship, and distinguish recoverable taxes from costs when appropriate for your circumstances.
An estimate is only as complete as its inputs. Confirm customs classification, valuation, taxes and recoverability with suitable advisers.
Read the Landed Cost for Importers guide for a structured cost review.
3. Allocate shared charges once
When several products share a shipment, a common charge needs an allocation method. A weight-based allocation and a value-based allocation can produce different results. Choose and document a basis appropriate to the charge and decision.
Do not include a shared freight pool in each SKU and then allocate it again. Reconcile allocated amounts to the original pool.
The Import Buying Toolkit includes a separate example for exactly two SKU lines. It is not an unrestricted allocation engine: adding rows does not automatically extend its formulas. Rates and charges are entered manually; there are no live FX or freight feeds.
Download the English educational workbook from the Toolkit page linked below.
4. Test the margin before approving the order
Consider a fictional item with an estimated landed cost of USD 12 and an assumed selling price of USD 16. The difference is USD 4 per unit, or 25% of selling price, before selling expenses, overhead and other excluded costs. That is not a net-profit forecast.
If the estimated landed cost rises to USD 13.50 while the selling price stays USD 16, the difference falls to USD 2.50, or about 15.6% of selling price.
Use this kind of sensitivity check to decide which assumptions need confirmation. Review changes in FX, freight, shipped quantity and expected selling price. Keep margin and markup distinct: USD 4 divided by USD 12 is a 33.3% markup on cost, not a 33.3% margin.
These are educational calculations. The Toolkit does not automatically calculate resale margin.
5. Turn the selected quotation into clear purchase order instructions
A purchase order should identify what was agreed and what remains conditional. Check:
- Supplier identity, quotation reference and agreed specification.
- Quantities, units, price, currency and total.
- Packaging, labels and inspection requirements.
- Delivery basis, named place and expected schedule.
- Payment milestones and required documents.
- The person responsible for confirming each open item.
Record changes to the agreement so the purchasing, finance and logistics teams work from the same version. Independently verify payment instructions through an established channel before transferring funds.
Use the Purchase Order Management for Importers guide to review the handoff from quotation to order.
6. Connect the purchase order to shipment follow-up
After the order is agreed, assign responsibility for production updates, inspection, packing information, shipping documents and shipment milestones.
A milestone should distinguish an estimate from a confirmed event. An expected departure date is not proof that the goods have departed. Record the evidence behind important status changes and keep the next action visible.
The Shipment Tracking for Importers guide explains how to organize that follow-up.
Before committing
Confirm the specification, reconcile the cost assumptions, review the margin sensitivity and assign the remaining actions. If an important input is unknown, record the decision needed rather than hiding it inside an optimistic total.
Selandri is being developed for import and export teams. This educational workflow does not establish production readiness, live carrier connectivity, automatic customs calculations or guaranteed profitability. The educational Toolkit is available below. For general enquiries, email contact@selandri.com. Public ERP registration and automatic meeting booking are not available.
Independent educational resource. No Canton Fair affiliation, endorsement or participation is claimed.