Key takeaways.
- T/T dominates stock-lot payments: a deposit (commonly around 30%) with the balance before shipment or against a B/L copy is the typical structure; letters of credit are rare on one-off stock deals.
- Pay only to a company account matching the supplier's registered name — never to a personal account, however small the lot.
- The three proofs before any deposit: full carton photos, a live warehouse video with a handwritten date card, and the date of manufacture.
- Third-party inspection typically costs USD 100–200 per man-day in the supplier's city; wrong counts and mixed grades are the two most common findings, and both are far cheaper to catch before payment.
- Standard AQL needs adapting for stock: sample per carton batch, inspect each grade separately, and add set-completeness, size-run and moisture checks that production-run AQL ignores.
1. Why stock-lot risk is different from first-run sourcing
First-run orders fail slowly: a factory misses a production date, and you have weeks to react. Stock lots fail fast and irreversibly — once the goods ship, there is no re-order and no factory to complain to, because the lot was unique. Three structural features drive the risk:
- No recourse production. A surplus lot is a one-time pool of finished goods. If the count or grade is wrong, there is nothing to "fix in the next batch".
- Mixed provenance. One warehouse can hold goods from several origins, production dates and quality tiers — sometimes inside one carton range.
- Speed pressure. Good lots sell in days. The seller's urgency ("three buyers are asking") is real but is also the most-abused sales lever in the trade.
The discipline that resolves this tension: compress verification into days, never skip it. The checklist in section 5 is designed for exactly that.
2. Payment terms: typical structures and the rules that matter
| Structure | Typical pattern | When it appears | Risk notes |
|---|
| T/T 30/70 | ~30% deposit, balance before shipment or against B/L copy | The common default for container-size lots | Standard and workable; attach the three proofs to the deposit milestone |
| T/T full prepayment | 100% before goods move | Very small lots, pallet deals | Acceptable only when lot value is small and proofs are complete |
| Payment after inspection | Balance released after third-party inspection report | Container lots, first-time suppliers | The safest structure; inspection cost is trivial versus lot value |
| Letter of credit | LC at sight | Rare — one-off stock deals rarely justify LC bank fees and document rigidity | Usually reserved for regular trade, not clearance buying |
Patterns are indicative market practice, not offers. Terms are negotiated lot by lot between buyer and supplier on stock-clearance.ai.
Two rules that cut across every structure:
- Beneficiary name discipline. The bank account must match the supplier's registered company name. A mismatch between the listing, the contract and the beneficiary is the classic payment-fraud signature.
- Milestone linkage. Tie each payment to a deliverable: deposit ⇢ three proofs + contract; balance ⇢ inspection report or B/L copy. A payment with no deliverable attached is a gift.
3. Pre-payment verification: the three proofs and beyond
The three proofs (minimum standard)
- Full carton photos — including inner packing, assortment mix and any grade labels.
- Live warehouse video with a handwritten date card — a scheduled video call where the seller walks the racks; recordings alone can be recycled between deals.
- Date of manufacture — the age of the lot drives both price and resale claims (batteries, adhesives, food-contact materials, licence status).
Beyond the minimum
- Physical samples from the actual lot (not the showroom) — courier a few cartons' worth before committing a container.
- Carton-dimension and pcs/carton data for freight math — bulky goods can destroy margins that looked fine per piece.
- For branded or licensed goods: confirm in writing that lots are surplus stock, not authorised first-run retail goods; trademarks belong to their owners, and resale rules vary by market.
4. Third-party inspection adapted to stock lots
Third-party inspection in the supplier's city typically costs USD 100–200 per man-day, and on container-size purchases that is usually a fraction of one percent of goods value. Standard production AQL sampling is the starting point, but stock lots break its assumptions — a stock warehouse is not a uniform production run. The practical adaptation:
| Check | Production-run AQL | Stock-lot adaptation |
|---|
| Sampling frame | Random sample across one production batch | Sample proportionally from each carton batch / pallet; lots mix batches |
| Grade control | One grade definition | Inspect each declared grade (A / B / mixed) separately; verify the mix ratio matches the invoice |
| Count verification | Rarely needed | Core check — actual pcs per carton vs packing list, on a fixed number of cartons |
| Set completeness | N/A | Verify multi-part goods (sets, pairs, kits, hardware bags) are complete |
| Size-run balance | N/A | Apparel/footwear: verify the size curve matches what was sold, not just total pieces |
| Condition & storage | N/A | Moisture damage, odour, dust, carton crush, date-of-manufacture consistency |
The two findings that recur across almost every stock-lot inspection: wrong counts and mixed grades. Both are cheap to catch at inspection and expensive to discover at your warehouse.
5. Red flags that end negotiations
- Full payment demanded up front on a large lot, with inspection refused or "not necessary".
- No live warehouse access — only pre-recorded videos or photos that look generic.
- Price far below every comparable lot without a credible story (the credible stories exist — cancelled exports, rebranding, season ends — but they come with documentation).
- Beneficiary name mismatch between the listing, the proforma invoice and the bank account.
- No date of manufacture, or dates that shift between documents.
Any single red flag justifies slowing the deal down; several together justify walking away. The stock-lot market is deep — no single lot is worth a broken rule.
6. The five-step pre-payment checklist
Step 1 — Verify the seller's identity
Company name on listing = company name on contract = bank beneficiary. A registered Chinese company can be checked against its business licence in minutes.
Step 2 — Collect the three proofs
Carton photos, live warehouse video with date card, date of manufacture — before any money moves.
Step 3 — Fix the payment milestones
Deposit tied to proofs and contract; balance tied to inspection report or B/L copy. Company account only.
Step 4 — Inspect proportionally
For container lots, book third-party inspection (typically USD 100–200 per man-day) with the stock-lot scope: counts per carton batch, grade mix, set completeness, size curve, moisture and dates.
Step 5 — Paper the deal
A short written confirmation covering: lot contents and grades, pcs/carton and carton counts, total price and terms, inspection rights, and the surplus/not-first-run status for branded goods. In stock trade the paper trail is the warranty.
7. Where to buy with less friction
stock-clearance.ai connects buyers directly with verified suppliers — inquiries go straight to the seller on WhatsApp, terms are negotiated lot by lot, and every listing shows photos, quantity and MOQ before first contact.
Browse live stock lots
Stock lots — wholesale direct
Related report: mixed container loading →
Frequently asked questions
What payment terms are typical for China stock lots?
T/T dominates: a deposit (commonly around 30%) with the balance before shipment or against a B/L copy. Full prepayment appears on very small lots; letters of credit are rare because one-off stock deals rarely justify LC fees and document rigidity. Always pay to a company account matching the supplier's registered name.
How much does third-party inspection cost in China?
Typically USD 100–200 per man-day in the supplier's city. A one-day inspection usually covers counts, carton condition, assortment mix, grade sampling and photo documentation — a fraction of one percent of a container's value.
Does standard AQL sampling work for stock lots?
It helps but must be adapted: sample proportionally per carton batch, inspect each grade separately, and add set-completeness, size-run, date-consistency and moisture checks that production-run AQL ignores.
What proof should I get before paying?
The three proofs: full carton photos including inner packing, a live warehouse video with a handwritten date card, and the date of manufacture. For branded goods, add written confirmation that lots are surplus stock, not authorised first-run retail goods.
What are the red flags when buying surplus stock?
Pressure for full payment up front, refusal of live warehouse access, prices far below comparables without a documented story, beneficiary names that don't match the supplier, and missing or shifting manufacture dates.