Three decisions set your risk on a treadmill order, and none of them is the unit price. They are the Incoterm you accept, the payment split you agree, and who inspects the goods before the container leaves. Get those right and a mid-priced supplier is safe to work with. Get them wrong and the cheapest quotation in your inbox becomes the most expensive order of the year.
This guide explains what each term actually transfers, why we quote FOB Ningbo, how to structure a first payment, and what a pre-shipment inspection should cover.
The four Incoterms you will be quoted
Suppliers quote in whatever term the buyer asks for, so the same factory can appear 8% cheaper under one term and more expensive under another. The comparison only works once you normalise the term.
| Term | What the seller pays for | Where risk passes to you | What to watch |
|---|---|---|---|
| EXW (Ex Works) | Making the goods, nothing else | At the factory door | You arrange export clearance, inland haulage and loading. Rarely right for a first order. |
| FOB (Free On Board, named port) | Goods plus export clearance and loading on board | When the goods are on board the vessel | You choose the forwarder and see the real freight rate. The container standard. |
| CIF (Cost, Insurance, Freight, named port) | FOB plus ocean freight and insurance | Still when goods are on board — not at destination | Insurance cover is a minimum, usually 110% of contract value on restricted clauses. Check the cover, not just the word. |
| DDP (Delivered Duty Paid) | Everything, including import duty and clearance | At your door | Convenient, but you never see the duty line, and in the EU the seller becomes importer of record — which hides your own VAT and EORI obligations rather than removing them. |
Two things surprise first-time importers. First, CIF does not move risk to the destination port; risk still passes when the goods are loaded, exactly as with FOB. Second, DDP looks like the simplest option and is usually the least transparent one — you cannot verify what duty was paid, and a DDP price cannot be compared with a FOB price without reverse-engineering the freight and duty.
Why we quote FOB Ningbo
Ningbo is one of the largest container ports in the world, and quoting FOB from it keeps two things in your hands:
- Your forwarder. You keep the relationship, the credit terms and the rate. If a supplier books the freight, you inherit their margin and their schedule.
- The bill of lading. Under FOB the B/L is issued to your account, which means you control the cargo document rather than requesting a copy.
If you would rather not manage freight at all on a first order, ask for a CIF comparison as well and put both numbers side by side. Our guide to comparing treadmill quotations explains how to normalise the two so the comparison is honest, and what drives the ex-works price covers the cost lines underneath.
Structuring the payment
Almost every order is split into a deposit and a balance. The percentages are a negotiation, not a rule — first orders usually carry a higher deposit than repeat orders, because the supplier is carrying the risk of a new buyer.
The principle worth holding to is this: neither side should be fully exposed at the same moment.
- Deposit. Pay enough that the supplier will start, not so much that you have no leverage left. Confirm what the deposit covers — materials only, or materials plus production slot.
- Balance. Release it against something you can verify: a passed inspection report, or a copy of the bill of lading. Releasing on “the goods are ready” alone gives you nothing to hold.
- Account name. The bank account must match the contracting company name. A request to pay a different entity — especially a sudden change of bank details by email — is the single most common fraud pattern in this trade. Verify any change by phone with a number you already had.
For container orders, ask for the loading plan before you pay the balance, so the quantity and carton count in the invoice match what physically goes into the container.
Inspection before the balance
A pre-shipment inspection is the cheapest insurance in the order. Book it at 100% production, ideally with 80% already packed, so the inspector sees both the units and the cartons.
What the report should cover:
- Quantity and model mix against the invoice, unit by unit
- Function test — power on, speed range, incline if fitted, console readouts, safety key cut-off
- Cosmetic check — deck, side rails, console, handrail finish
- Packaging — carton condition, foam thickness, drop test if agreed
- Labels and barcodes — your SKU, your market’s language requirements
- Accessory count — tool kit, manual, silicone oil, safety key
- Carton dimensions and gross weight, checked against the packing list
Agree the sampling plan and the acceptance level before production starts, not after a failure. If you sell into the EU, add a documentation check to the same visit: the certification set and the GPSR requirements are the two areas where a container can be technically perfect and still not be sellable.
The document set to expect
| Document | What it proves | When you need it |
|---|---|---|
| Commercial invoice | Price, terms, Incoterm, HS code | Always |
| Packing list | Carton count, dimensions, gross weight | Always |
| Bill of lading | Title to the cargo | Always |
| Certificate of origin | Origin for duty purposes | Where a preferential rate applies |
| Declaration of Conformity + test reports | CE compliance | EU |
| Test report to the applicable standard | Product safety | US and other markets as required |
Ask for a sample set before you order, not after. A supplier who cannot produce a DoC for the model you are buying has not tested it.
Red flags worth walking away from
- A price well below the band every other supplier quoted, with no explanation of the difference
- Refusal to allow a third-party inspection, or a demand that the balance is paid before inspection
- Bank details that do not match the company name, or a change of account by email
- No verifiable company registration or export history
- A warranty that is described verbally but not written into the contract
The questions to ask a treadmill supplier before ordering covers the commercial checks that sit alongside the payment terms.
Frequently asked questions
Should I pay a deposit by bank transfer or through a platform?
Bank transfer to the company account is standard for container orders. Platform escrow is useful for small sample orders where neither side has a history; it is rarely used at container volume because the fees and the release conditions do not fit the production cycle.
Is 30% deposit normal?
It is a common starting point, and it is negotiable. What matters more than the number is what the balance is released against — an inspection report or a bill of lading, not a promise.
Can I pay the balance after the container arrives?
Rarely on a first order, because the supplier would carry the entire risk. A workable compromise is a smaller balance before shipment and the remainder against documents, or a letter of credit where the volume justifies the cost.
Who arranges insurance under FOB?
You do. Under FOB the seller’s obligation ends when the goods are on board, so cargo insurance is yours to arrange — usually through your forwarder, often for a small fraction of the goods value.
What if the inspection fails?
The contract should state who pays for rework, who pays for the re-inspection, and what happens to the delivery date. Agree this before production, when both sides are still friendly.
Can you hold stock so I do not need a container?
Yes for buyers in Europe. Our EU warehouse list shows models held in Germany with 3–5 day delivery, which is often the right way to test a market before committing to a container.