China Factory Jargon and Sourcing Terms Explained
1 resources tagged with "Factory Jargon"
Chinese electronics suppliers move fast through acronyms — MOQ, DFM, T/T, FOB, EXW, AOI — and a buyer who can't parse them loses bargaining power on every call. The glossary behind this tag covers about 80 terms a buyer actually hits in quotes and WeChat threads, from product categories to factory-floor abbreviations to Incoterms. Knowing that 'OEM' and 'ODM' mean different IP arrangements, or that an FOB Shenzhen quote excludes ocean freight, changes how you read a price.
Factory jargon trips up buyers most when a term is used loosely — 'in stock' can mean components are stocked, not finished goods, and 'sample fee' may or may not be deducted from the first order. When in doubt, ask the supplier to define the term in the PO so both sides are bound to the same meaning.
Guides (1)
FAQ
What's the difference between OEM and ODM?
OEM (Original Equipment Manufacturer) means the factory builds to your design and you own the IP. ODM (Original Design Manufacturer) means the factory's own design is rebranded for you — faster and cheaper, but you typically don't own the tooling or the design.
What does FOB Shenzhen actually include?
FOB (Free On Board) means the price covers goods loaded onto the vessel at the named port — here Shenzhen. It excludes ocean freight, insurance, destination port fees, duties, and last-mile delivery, all of which you add to reach landed cost.
Why does a quote list MOQ separately from price?
MOQ (Minimum Order Quantity) is the smallest batch a factory will run, driven by setup, tooling, and component reels. Price-per-unit usually steps down at higher quantities, so the MOQ tells you the floor before you negotiate volume breaks.
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