International trade has its own vocabulary. Understanding these terms helps you communicate professionally with suppliers and avoid costly misunderstandings.

RFQ (Request for Quotation) — A formal inquiry asking suppliers to provide pricing for specific products. Include specifications, quantities, and delivery requirements for accurate quotes.

MOQ (Minimum Order Quantity) — The smallest quantity a supplier will produce in a single order. Negotiable, especially for first orders or repeat customers. Typical MOQs range from 100 pieces for small components to 1,000+ pieces for custom items.

Lead Time — The total time from order confirmation to shipment readiness. Includes production, quality inspection, and packaging. Always confirm lead time before ordering and build buffer time into your planning.

OEM (Original Equipment Manufacturing) — The supplier manufactures products to your specifications, often with your branding. You provide the design; they make it.

ODM (Original Design Manufacturing) — The supplier designs and manufactures products that you then brand as your own. You select from their existing designs; they handle R&D.

FOB (Free on Board) — Seller delivers goods onto the shipping vessel at the named port. Buyer pays ocean freight and everything after. Most common term in China trade.

CIF (Cost, Insurance, and Freight) — Seller pays for transportation and insurance to your destination port. Convenient but often more expensive than arranging your own freight.