A supplier quotation is not the same as the cost of getting a sellable product into your warehouse. D2C brands comparing India, China, Vietnam or another Asian sourcing market should use a landed-cost model that captures the full set of expenses and timing assumptions. This is particularly important for brands whose margins depend on paid acquisition, fulfilment, returns and promotional pricing.
Start with a like-for-like supplier quotation
Before comparing countries, make sure suppliers are quoting the same specification: material, construction, dimensions, finish, packaging, testing, order quantity and quality standard. Confirm the Incoterm and named place. An FOB quote, an EXW quote and a delivered quote cannot be compared directly without normalizing the cost components.
Build the landed-cost model
- Factory price and any development, tooling or setup charges.
- Export packing, labeling, inspection and required testing.
- Origin inland transport, export documentation and port handling.
- International freight, insurance and destination handling.
- Customs duties, tariffs, taxes and broker or clearance charges.
- Destination transport, warehousing, fulfilment preparation and storage.
- Expected costs of defects, rework, returns, delays and inventory buffers.
Separate one-time costs from recurring costs
Development samples, tooling, mold charges and setup fees may be concentrated in the first order. Recurring unit costs include materials, labor, packaging and transport. Show both the first-order economics and the repeat-order economics. For D2C launch planning, calculate how many units must sell to recover fixed development and setup costs.
Account for freight volume and packaging design
Carton dimensions and shipping weight can materially change freight and fulfilment cost. A bulky low-value product may have a different economics profile from a compact premium item. Validate packed dimensions, pallet configuration and carton strength. Packaging changes must also protect the product and comply with retail or parcel fulfilment requirements.
Use current destination-specific customs assumptions
Duty and import-tax treatment depends on the product’s tariff classification, origin, destination, customs value and applicable trade measures. These can change. Do not use a generic country percentage for all products. Confirm classification, valuation, origin documentation and current duty or tax treatment with a customs broker or qualified trade professional before making a purchase decision.
Include cash flow and lead-time exposure
Payment terms, deposits, production time, transit time, customs clearance and buffer stock affect working capital. A slightly higher unit price may be commercially attractive if the supplier offers a smaller MOQ, more reliable replenishment or lower inventory exposure. Model cash tied up from deposit through sale, not just cost per unit.
Compare scenarios, not just one quote
Run a base case and a realistic downside scenario for freight, currency movement, delays, inspection failures and demand variance. Review the result per sellable unit and expected gross margin. Update the model when the actual shipment and landed expenses are known.
Vanguard Sourcing helps buyers coordinate supplier quotations, sample development and factory follow-up in India. See our India and China sourcing comparison for more supplier-selection considerations.
Planning a new product or supplier programme? Vanguard Sourcing supports D2C brands, retailers and importers with supplier identification, product development, merchandising, production coordination and quality follow-up in India. Discuss your sourcing requirement or review our India sourcing support.
Related sourcing guides: Continue planning with India vs China vs Vietnam sourcing, MOQs, sampling and production planning, and India sourcing for US D2C brands.
