How Much Deposit Should You Pay a Chinese Supplier?

A 30% deposit and 70% balance is common in China sourcing, but “common” does not mean safe for every order.

The right deposit depends on what the factory must commit before production and how much leverage you need to keep until the finished goods are verified.

Why suppliers ask for a deposit

A genuine factory may need to buy raw materials, reserve production time, create tooling, print packaging, or make components that cannot easily be sold to another buyer. A deposit can be commercially reasonable. The question is whether the amount matches the supplier's real exposure.

When 30/70 may be reasonable

It can work for a verified supplier producing a standard product with clear specifications, a realistic lead time, and a pre-shipment inspection. The 70% balance gives the buyer meaningful leverage if the completed batch is wrong.

But the structure becomes weak if the contract says the balance is due when production is “finished” without defining how completion is confirmed. The balance should be due only after the goods are completed, the quantity and specifications are verified, inspection is passed, and any agreed corrections are complete.

When a higher deposit may be justified

• Custom molds or tooling must be made.
• Materials are expensive and unique to your order.
• Packaging carries your brand and cannot be resold.
• The product is highly customized or has little resale value.

Ask the supplier to separate tooling, raw material, packaging, and production costs instead of accepting one unexplained percentage. Pay directly against real milestones where possible.

When you should push for a lower deposit

• The product is standard and easy for the supplier to resell.
• The order is large relative to the factory's normal business.
• The supplier is new to you.
• The company, factory, beneficiary, or capacity has not been fully verified.
• The supplier refuses inspection or asks for the full balance too early.

Better milestones than “30 now, 70 later”

For a simple order, the deposit can follow contract confirmation and supplier verification, with the balance after passed inspection. For a more complex order, split payments around objective events: tooling approval, approved pre-production sample, material confirmation, production progress, completed-goods inspection, and shipment document control.

Do not create too many milestones for a small order. Each payment adds administration and bank fees. The structure should match the risk, not look complicated for its own sake.

What must happen before final payment

• The actual bulk goods are complete and identifiable as your order.
• Quantity, model, dimensions, materials, color, function, and packaging meet the written standard.
• The inspection covers a meaningful sample of the finished batch.
• Defects are corrected and the corrected goods are checked again.
• Shipping terms, export documents, and responsibility for local charges are clear.

Bottom line: negotiate the deposit based on real production commitment. Protect the final balance as your leverage. The percentage matters, but the release conditions matter more.