A cheaper factory price does not automatically make an overseas supplier cheaper for your business. Equally, a local supplier is not automatically faster or more reliable. Compare the actual product, complete costs, responsibilities and evidence of delivery performance.
Begin with a comparable specification
Send the same product brief to each supplier. Match dimensions, materials, included parts, packaging and quantity. Otherwise you risk comparing a basic product with a better-equipped version and calling the difference a sourcing advantage.
Order suitable samples and inspect them against the intended customer use. A long-distance source may be appropriate for a differentiated item, while a domestic source may make small replenishments easier. The right answer depends on confirmed terms rather than geography alone.
Compare more than the quoted unit price
| Decision | What to confirm |
|---|---|
| Landed cost | Product, freight, handling, inspection and applicable charges |
| Lead time | Production, transport and potential clearance or receipt delays |
| Cash commitment | Deposit, balance due, currency and payment costs |
| Quality | Approved sample and batch inspection process |
| Defects | Replacement, credit or return terms and practical costs |
| Compliance | Requirements for the product and sourcing route |
A fictional comparison
Suppose Supplier A quotes ₹250 per unit and ₹1,000 freight for 100 units: ₹260 per unit before other relevant costs. Supplier B quotes ₹190 per unit, but estimated batch freight and handling total ₹5,000: ₹240 per unit before any remaining import-related costs or other charges.
The apparent ₹60 unit-price difference has already narrowed to ₹20. This example is not an import-duty estimate. Actual duties, taxes, documentation, restrictions and product requirements depend on the goods and transaction. Confirm them with the appropriate official sources and qualified advisers before ordering.
Allow for the full replenishment cycle
Ask when production can start, how long it takes and who controls each transport stage. Add time for receipt and inspection before stock is available to sell. Do not use a supplier's best-case dispatch date as a guaranteed customer-delivery date.
If a longer lead time requires a larger batch, calculate the cash tied up and the risk of slow-moving stock. A small price saving can be outweighed by goods you cannot sell or an expensive rush shipment after a delay.
Check the practical defect process
Ask how a defect is reported, what evidence is required and who pays any transport cost. A replacement promise may be less useful if it arrives after the selling period or requires an uneconomic return shipment. Confirm the terms in writing before paying.
Make the first decision reversible where practical
Start with a sample and a controlled batch you can afford to evaluate. Record arrival time, inspection results, sell-through and actual cost. Build a backup sourcing option only after checking its own sample; two suppliers are not interchangeable simply because their photos look similar.
Choose the route that meets your product requirements at workable cost and cash risk. Revisit the decision using real order evidence rather than treating local or international sourcing as a permanent rule.
Continue with a practical guide
Leviative editorial guide · Reviewed 21 October 2026 · AI-assisted draft reviewed for factual claims, calculations and clarity.