Quick Answer: Most private label tampon orders are paid by T/T (bank wire transfer), usually split into a deposit due at order confirmation and a balance due before shipment. Letters of Credit (L/C) are more common for larger or first-time orders where a bank’s payment guarantee matters more than transfer speed, and trade assurance or escrow services offered by B2B platforms can reduce risk when a buyer has not yet visited the factory in person. The right structure depends on order size, how well the buyer and supplier already know each other, and how much risk each side is willing to carry before goods change hands.
How T/T Payment Typically Works for Tampon Orders
A T/T deposit is usually requested at order confirmation, before raw materials are committed and a production slot is scheduled. The balance is normally tied to a specific milestone — a pre-shipment inspection passing, or a copy of the bill of lading — rather than released sight-unseen once goods are already on a vessel. Ask your supplier to state this trigger point in writing in the proforma invoice or sales contract, not just in a chat message.
For repeat orders with an established payment history, some buyers and suppliers move to more flexible terms, such as a smaller deposit or payment against documents. This is typically earned over several completed orders rather than offered on a first purchase.
When a Letter of Credit Makes More Sense
A Letter of Credit is a payment guarantee issued by the buyer’s bank and paid out only once the supplier presents documents that match the terms of the credit exactly. L/C transactions are governed internationally by UCP 600, the Uniform Customs and Practice for Documentary Credits published by the International Chamber of Commerce, which both banks and suppliers can reference if a dispute arises over documentation.
L/Cs take longer to open and carry bank fees on both sides, so they tend to make more sense for larger orders or buyers who specifically want a bank — rather than a personal wire transfer — standing behind the payment. Whether your order size justifies an L/C is worth discussing directly with your supplier rather than assuming either way.
Trade Assurance and Escrow for First-Time Orders
For buyers who haven’t visited the factory and don’t yet have a payment history with a supplier, trade assurance or escrow services offered by major B2B sourcing platforms can provide a middle ground between a plain T/T wire and a full Letter of Credit. These services typically hold payment until agreed shipping or inspection conditions are met, which reduces — though does not eliminate — the risk of paying a deposit to a supplier you can’t yet verify in person.
What to Confirm in Writing Before You Send a Deposit
- The exact deposit percentage and what it is meant to cover (materials, tooling, scheduling)
- What triggers the balance payment — inspection sign-off, bill of lading date, or goods received
- Which currency payment is made in, and who absorbs international wire transfer fees
- What happens to your deposit if the order is cancelled before production starts
- Whether the bank account or platform you’re paying into matches the supplier’s registered company name
Payment Term Red Flags to Watch For
- A supplier who insists on full payment upfront with no sample order or reference history
- Refusal to specify in writing what the balance payment is contingent on
- Requests to wire funds to a personal account rather than the company’s registered business account
- Unwillingness to discuss trade assurance or escrow for a first, smaller-volume order
Frequently Asked Questions
Is T/T or L/C better for a first tampon order? There’s no single right answer — it depends on order size and how much payment-guarantee assurance you need. Many first orders use T/T with a deposit/balance split plus a pre-shipment inspection; larger first orders sometimes justify the extra time and cost of an L/C.
What deposit percentage is normal? This varies by factory and order size, so there isn’t a universal figure to quote here. Ask for the split in writing and confirm exactly what the balance payment is tied to before you agree to it.
Can I use trade assurance for a larger repeat order? Some platforms cap the transaction size covered by trade assurance, so check the specific platform’s limits. For larger repeat orders, many buyers move to a direct T/T relationship once trust is established, or use an L/C.
Who pays international wire transfer fees? This is negotiable and should be written into the purchase order or contract rather than assumed — fees can otherwise become a point of dispute at balance payment time.