Risk Management

Quality Control Guide: How to Inspect Goods in China & Avoid Returns

Nov 17, 2025
9 min read

Imagine this: You pay $10,000 for 1,000 yoga mats. They arrive at the Amazon warehouse 45 days later. Customers start buying them... and returning them.

"Smells like chemicals." "Tears easily." "Wrong color."

Your listing gets suspended. You have $10,000 of unsellable junk stuck in a warehouse. This is the nightmare scenario for every importer.

The only way to prevent this is Pre-Shipment Inspection. In this guide, we will teach you exactly when to inspect, how to pay, and how to define your quality standards so the factory can't cheat you.


The Leverage Rule: 30/70 Payment Terms

This is the most critical rule in sourcing.

  • 30% Deposit: Paid to start production.
  • 70% Balance: Paid ONLY after the goods pass a 3rd party inspection.

If you pay 100% upfront (or pay the balance before inspection), you have zero leverage. If the goods are bad, the supplier already has your money. They have no incentive to fix anything.

Action: Put this clause in your Purchase Order (PO): "Balance payment subject to passing a 3rd party inspection based on AQL Level II standards."

Understanding AQL (Acceptable Quality Limit)

You cannot inspect every single unit (100% inspection is too expensive). Instead, inspectors use statistical sampling known as AQL.

Defects are categorized into three types:

  1. Critical (0 allowed): Dangerous or unsafe (e.g., sharp edges, mold). If 1 is found, the whole batch fails.
  2. Major (2.5% allowed): Functional failure (e.g., the zipper doesn't zip).
  3. Minor (4.0% allowed): Cosmetic issues (e.g., small scratch, messy glue).

If you order 1,000 units, the inspector will randomly check 80 units. If they find more than 5 Major defects in those 80, the inspection FAILS.

The 3 Types of Inspections

When should you send the inspector?

1. Pre-Production Inspection (PPI)

When: Before production starts.
Why: To check the raw materials. (e.g., "Are they using the real leather I paid for, or cheap fake leather?")

2. During Production Inspection (DUPRO)

When: When 20-50% of goods are made.
Why: To catch mistakes early. If they are painting it the wrong color, you want to stop them before they paint all 1,000 units.

3. Pre-Shipment Inspection (PSI) - *Essential*

When: When 100% of goods are made and 80% are packed in boxes.
Why: This is the final gate. Do not ship until this passes.

Who to Hire? (3rd Party Services)

Do not ask the factory to inspect themselves. Hire an unbiased professional.

  • QIMA (formerly AsiaInspection): The gold standard. Expensive ($300+) but very reliable app/dashboard.
  • V-Trust: Solid reputation in electronics and hard goods.
  • Effortless Sourcing (Agencies): If you have a sourcing agent, they often include this service.

Cost: Approx $200 - $300 per "Man-Day."

Creating a "Defect List" (The Golden Sample)

The inspector doesn't know your product. You must teach them.

Send them a "Golden Sample" (a perfect unit) to compare against. Then, create a list of specific things to check:

  • "Drop test the carton from 1 meter height. Does the product break?"
  • "Scan the barcode. Does it match the Amazon FNSKU?"
  • "Smell the product. Is there a strong chemical odor?"
  • "Weigh the product. Is it exactly 500g (+/- 5g)?"

If you don't tell them to check the barcode, they won't check it. If the barcode is wrong, Amazon will reject your shipment. Be specific.

What to Do if Inspection Fails?

Do not panic. This is normal.

  1. Demand a Rework: Tell the factory to unpack the boxes, fix the defects (or replace the bad units), and repack them.
  2. Re-Inspection: Tell the factory they must pay for the 2nd inspection to verify the fix. (Put this in your contract!).
  3. Negotiate: If the defects are minor (e.g., slight color variance) and you need the stock urgently, you can accept the batch but demand a discount (e.g., 20% off) to cover potential returns.

FAQ

Can I do a 100% Inspection?

Yes, but it's expensive. You usually do this at a "Prep Center" after the goods leave the factory but before they go to Amazon. This is common for high-ticket items like electronics where even a 1% defect rate is unacceptable.

Does Alibaba Trade Assurance cover quality?

Only if you have a clear contract AND a failed inspection report. If you receive the goods in the US and then complain, Alibaba usually won't help you because you can't prove the damage didn't happen during shipping or in your warehouse.

Is it worth inspecting a small order ($1,000)?

Probably not. If the inspection costs $300, that's 30% of your margin. For small test orders, ask the factory to take a video of the product being tested and packed. It's better than nothing.

Conclusion

Quality Control is not an expense. It is an investment.

Spending $300 to prevent a $10,000 disaster is the best ROI you will ever get. It protects your Amazon account health, your brand reputation, and your sanity.

Action Step: Before your next order, draft a "Quality Manual" (just a 1-page PDF with photos of "Good" vs "Bad" defects) and send it to your supplier. Tell them an inspector will be using this checklist. Watch how fast their quality improves.

Return Rate Impact

A 5% return rate due to bad quality kills 20% of your profit. Use the calculator to see the damage.

Open Calculator