Product Sourcing FAQs for First-Time UK Buyers
Your first sourcing project raises more questions than anyone tells you about. Where do I find suppliers? What is a fair minimum order? Who pays the duty? This product sourcing FAQ collects the questions new UK buyers ask most, with straight answers and pointers to where you should confirm details. Rules and charges change, so wherever a point depends on current regulation we say so rather than quoting numbers from memory.
Finding suppliers
Where do I start looking for a supplier?
Begin with sources you can check: trade directories, trade shows, industry associations, recommendations from other business owners and the distributors already serving your market. Online marketplaces and sourcing platforms can widen the search, but treat every listing as a lead, not a guarantee.
Should I buy from a UK supplier or import?
UK suppliers usually offer shorter lead times, smaller minimums, easier returns and no customs paperwork, at a higher unit price. Importing can lower the unit cost but adds freight, duty, compliance and cash-flow demands. Many first-time buyers begin with a UK distributor to test demand. Our comparison of [supplier vs distributor] helps frame the choice.
How many suppliers should I talk to?
Request quotes from at least three for any significant purchase. Comparing like for like, on specification, delivery terms and payment terms, shows you what is normal and gives you leverage.
Checking a supplier
How do I know a supplier is genuine?
Verify the company on the public register if it is a UK limited company, check that names and addresses match across the website, quotes and bank account, ask for references and trade documents, and begin with a sample and small order. The full process is in [how to vet a supplier].
Is a very low price a red flag?
It can be. A price far below the rest of the market may signal poor quality, non-compliance, counterfeit goods or fraud. Ask what explains it before you proceed.
Do I need to visit the supplier?
Not always. For small orders a video call and good references may be enough. For large or custom orders, a visit or a professional inspection offers more assurance.
Samples and orders
Should I always get a sample?
Yes for any product where quality, fit or safety matters. A sample shows you what the supplier can make, but keep it to compare with the production batch, which can differ.
What is a minimum order quantity?
The smallest amount a supplier will sell in one order, set to cover production, handling or material costs. It is sometimes negotiable; see [negotiating minimum order quantities].
How much should my first order be?
Enough to test demand without putting your cash at risk. A smaller order at a slightly higher price is often wiser than a big order at the best price.
Costs and money
What costs should I include besides the product price?
Delivery in, import duty and VAT where applicable, customs clearance, insurance, payment charges, packaging, storage and an allowance for damaged or unsold items. The method is explained in [landed cost calculation].
Is the price quoted including VAT?
Trade prices are commonly quoted excluding VAT. Always check the wording on the quote. Whether you can reclaim VAT depends on your registration and circumstances, so confirm with your accountant or current HMRC guidance.
How should I pay a new supplier?
Avoid paying everything up front. A deposit with the balance on inspection or delivery is safer. Use traceable methods to accounts in the supplier’s company name, and confirm any change of bank details by phoning a number you already trust. Ask your payment provider about any protections that may apply to your method.
Can I get credit terms?
Established UK suppliers often offer credit once you have traded for some time or passed a credit check. New buyers usually start by paying in advance or at delivery.
Importing basics
Do I need a licence to import?
It depends on the goods. Many products need no licence, but some are restricted or require specific authorisations. Check the government guidance for your commodity code.
What is a commodity code?
A number that classifies goods for customs and sets duty rates and other requirements. Using the wrong code can mean paying too much or too little, so use the official tariff tool or ask a customs broker.
What are Incoterms?
Standard shorthand such as FOB or DDP that defines who is responsible for transport, insurance, duties and risk at each stage. Make sure you understand the one on your quote because it changes your costs.
Do I need a freight forwarder or customs broker?
Not by law in every case, but first-time importers often find one invaluable for arranging transport and handling declarations.
Product rules
Can I sell anything I buy?
No. Products must meet UK safety, labelling and marking requirements for their category, and some goods are restricted. Rules differ between Great Britain and Northern Ireland. Check official sources and consider asking your local trading standards service.
Who is responsible if a product is unsafe?
Businesses that place products on the market have legal duties, and importers and sellers can be responsible for the goods they supply, not just the manufacturer. Take advice for regulated categories such as electricals, toys, cosmetics and food contact items.
Do I need product liability insurance?
It is commonly recommended for businesses selling physical goods. Discuss your risks and options with an insurance broker.
Practicalities
How do I keep track of stock?
Use unique product codes, record every movement and count regularly. See [stock control basics] for a simple set-up.
What if the goods arrive damaged or wrong?
Check on delivery, note any problems on the paperwork, take photographs and contact the supplier in writing promptly, following their returns procedure and the contract terms.
How long does sourcing take?
For UK stock, days to weeks. For custom or imported goods, months once you include sampling, production, shipping and clearance. Build slack into your plans.
Trade Supplies in the UK: What Businesses Need to Know
Conclusion
Sourcing gets easier when you break it down: find candidates, verify them, test with samples, count the full cost and keep records. Use this FAQ as a checklist for your first project, and take professional advice where the law or the sums involved are significant.