How to Prepare a Purchase Order for a Chinese Supplier

Learn what to include in a purchase order for a Chinese supplier, including specs, quantity, payment terms, Incoterms, packaging, inspection, and dispute prevention.

What a purchase order should make clear

A purchase order should remove ambiguity before production starts. It should state exactly what is being ordered, how many units, at what price, under which Incoterm, with which packaging, payment schedule, inspection rules, and delivery expectations. A weak PO can lead to wrong materials, wrong logos, unclear cartons, or disputes about what was promised.

For China sourcing, attach or reference a product specification sheet. Include model number, material, dimensions, color, logo artwork, packaging method, label requirements, accessories, spare parts, testing standard, sample approval date, and photo references. If the supplier sends a proforma invoice, check that the PO and PI match before payment.

Practical example

For a private-label kitchen product, the PO should list the product SKU, stainless steel grade, size tolerance, logo placement, carton quantity, inner box artwork, barcode requirement, FOB port, deposit percentage, balance payment condition, pre-shipment inspection, and latest delivery date. If any of these are only discussed in chat, move them into the PO or PI.

Common mistakes

Sending only a quantity and unit price without product specifications.
Failing to define packaging, labeling, and carton marks.
Not linking balance payment to inspection or document approval.
Using vague phrases such as same as sample without sample reference.
Letting the PO and proforma invoice contain different terms.

Checklist

Product name, model, SKU, material, dimensions, and color.
Quantity, unit price, total value, currency, and Incoterm.
Packaging, labeling, barcode, carton, and shipping mark details.
Payment terms, delivery date, inspection point, and document requirements.
Supplier confirmation by stamp, signature, or written acceptance.

How a PO prevents disputes

A purchase order is useful because it creates a written reference when memory and chat messages become messy. If a supplier changes material, packaging, logo placement, carton quantity, or delivery date, the PO helps both sides check what was agreed. It should be specific enough that another person in the factory can understand the order without reading the whole chat history.

Use attachments when details are visual. Artwork files, label drawings, carton marks, inspection standards, approved sample photos, and packaging layouts should be named clearly and referenced in the PO. If the supplier confirms the PO, save the confirmed version with date and version number.

Terms to align with the proforma invoice

The PO and PI should match on buyer name, supplier name, product name, quantity, unit price, total amount, currency, Incoterm, payment schedule, delivery date, bank details, and shipment documents. If one says FOB Ningbo and the other says EXW factory, pause before payment. If one says neutral packing and the other says color box, ask for a corrected document.

For higher-value orders, include inspection before balance payment. A simple sentence such as balance payable after pre-shipment inspection and document approval can prevent avoidable pressure later.

This guide is for educational planning only. Confirm customs, tax, legal, compliance, inspection, shipping, and commercial decisions with qualified professionals and written supplier documents.