How Wrong Clothing Suppliers Can Kill Your Brand Reputation

After receiving your first order of samples and discovering the initial set of challenges with this process, let's continue the journey and explore solutions for working with clothing manufacturers and clothes manufacturers.

In part 2 of this article we will cover:

Trade Assurance is not guaranteed protection
Returns from overseas clothing manufacturers are costly and complex
Customs regulations differ significantly by region
Be aware of hidden import charges
Understanding import requirements is essential
European manufacturing can simplify sourcing
Reliable clothing manufacturers save time and money

Trade Insurance Programs and Wholesale Returns

You may now think, well if the products are defective or not what I ordered, I can probably return them, right? Technically yes. But the reality is very different when dealing with overseas clothing manufacturers:

Alibaba, for example, does have a Trade Assurance program, which is meant to protect buyers from fraudulent suppliers, but in reality, it often favors the clothing manufacturer. Even if you provide proof that a supplier sent defective products or failed to meet agreed specifications, getting a refund can be a long and difficult process.

Here's why:

Alibaba acts as a middleman but leans toward suppliers – Many disputes result in partial refunds or just small compensations instead of full refunds.
Return policies are nearly nonexistent – Unlike traditional warranties, returning goods is rarely an option because of high shipping costs.
Suppliers can delay or manipulate the dispute process – They may claim the issue was due to shipping, miscommunication, or external factors.
Trade Assurance only applies if conditions are met exactly – If your order agreement isn't highly detailed, it may not be covered.

If you're dealing with a bad clothing manufacturer, Alibaba is unlikely to force them to refund your order unless you have airtight documentation (detailed contracts, photos, videos, and independent inspection reports). This is why vetting clothing manufacturers carefully before ordering is crucial but still almost impossible to be 100% sure.

So you are pretty much stuck with what you have received and you have to either find a way to get your desired results with communication or find another clothing manufacturer. All of this costs you time and money.

If you are still debating what to do next, maybe you decide to do what we did and go a couple more rounds with sampling and try different clothing factories or different countries, maybe Vietnam or India or Turkey, and maybe eventually you find something you like. After you were happy with the samples, you place the "big" order, make the payment, and you wait - for another couple of weeks or months hoping it will all work out. It's now been almost 9-12 months. Finally, your packages arrive in your country, and you get a notification from customs.

Customs and Import Regulations

But it looks like there is an issue with the items. Apparently, those clothing items violate certain import regulations and do not follow the official guidelines. What guidelines? What regulations? And why now? Why not the first time with the samples? Here are a few regulations that could affect your delivery or even have them sent back:

In the EU:

REACH Regulation
General Product Safety Regulation (GPSR)
Textile Labeling Regulation (EU 1007/2011)
Forced Labor Regulation
Environmental Standards

In the US:

For USA clothing manufacturers and clothing brand manufacturers, the following regulations apply:

Consumer Product Safety Improvement Act (CPSIA)
Flammable Fabrics Act (FFA)
Textile Fiber Products Identification Act (TFPIA)
Customs Regulations
Tariff and Quota Violations

In Canada:

Textile Labelling Act (TLA)
Canada Consumer Product Safety Act (CCPSA)
Customs Act
CITES Restrictions
Forced Labor Bans

So even though your previous sample order made it through customs the first time without any problems, your big order now has a larger declared value and of course, the authorities are now taking a closer look. The chances of your goods being flagged are a lot higher this time. Bottom line, you should take a good look at the import requirements for products from Asia to your country and make sure your clothing manufacturer provides all necessary papers and evidence. This is especially important if you're located in the EU. This hold-up could lead to a situation where you now have to pay for the process to get your products compliant with your local customs office. This is usually a complicated, bureaucratic, and expensive process. But it can be done.

Import Fees, Taxation

Some things to consider are those additional charges that may hit you for compliance and various other processes during the import procedure. Here are some examples:

1. Customs Duties/Tariffs

Typically a percentage of your product's declared value.
Rates vary widely depending on product type, fabric, and country of origin.

2. Value-Added Tax (VAT) or Sales Tax

Applied on total product cost, including shipping and insurance.
VAT (EU/UK): usually between 19%-25%.
Sales Tax (US/Canada): typically depends on state or province.

3. Shipping & Freight Charges

Air Freight: faster but significantly more expensive.
Sea Freight: cheaper, slower, involves additional port and handling fees.
Additional charges for transport from point of arrival to your warehouse.

4. Brokerage Fees

Charged by customs brokers for handling paperwork and customs clearance.
Often depends on shipment complexity and shipment size.

5. Import Clearance Fees

Fees for customs clearance processes or handling/storage by the shipping carrier or port authority.

6. Excise Duties & Special Taxes

Rarely applicable for clothing, but certain luxury items or special materials can attract additional taxes.

7. Handling & Terminal Fees

Charged at ports or airports for processing your shipment.

8. Packaging and Labeling Fees

Costs related to compliance with import-country labeling and packaging standards.

9. Inspection Fees

Some countries randomly inspect goods and charge inspection fees.

Is this a real possibility or is this all made up?

Even though these are worst-case scenarios - everything in this story actually happened to us. Maybe none of this will happen to you - but there's a very good chance that at least one of these challenges will. And while it is not the end of the world, it is stressful and should be avoided. We lost almost two years and several thousand dollars and still had no product to sell. No samples ever met our standards, and we were running out of time and money. So we hope this article will help you to not make the same mistakes we did when sourcing from clothing manufacturers.

Turning Failure into Success

For us, all of this led to a new purpose. After finally finding the right sources and launching our first brand, we built a network of reliable clothing manufacturers and partners in Portugal. We turned our Alibaba nightmare into a thriving brand - built on reliability, quality, and trust.

Our mission is to help you avoid these pitfalls and get it right the first time. We offer low minimum order quantities (MOQs), scalable production, and high-quality manufacturing. Yes, bigger orders mean better pricing - but avoiding costly mistakes in the beginning is worth the investment.

Our Mission

Our mission is to help you avoid these pitfalls and get it right the first time when working with clothing manufacturers. We are able to start small and scale with you on your terms. Of course, the bigger the orders, the better the conditions and prices. But avoiding costly mistakes for a little extra - totally worth it!

Frequently Asked Questions (FAQ) About Clothing Sourcing

Can I return clothing samples if they arrive defective or don't meet quality expectations?

Technically yes, but returning defective samples—especially from platforms like Alibaba—is difficult and costly. Alibaba's Trade Assurance often favors suppliers, meaning full refunds are rare and usually require detailed proof (photos, videos, inspections). Return shipping costs can also exceed the sample's value, making returns impractical. Carefully vetting clothing manufacturers upfront is the best way to minimize this risk.

What hidden costs should I be aware of when ordering from overseas clothing manufacturers?

Expect extra charges for shipping, customs duties, VAT, brokerage fees, and packaging. Some clothing manufacturers also charge unexpected "handling" fees. Always get a full cost breakdown before placing an order.

How do shipping costs impact my overall budget when ordering from China, India, or Turkey?

Shipping from Asia can sometimes cost more than the actual products - especially for small orders. Express shipping can double your cost, while sea freight is cheaper but takes months. If you're not prepared, you could end up with a final cost that's far beyond what you budgeted when working with overseas clothing manufacturers.

How can customs regulations affect the delivery of my clothing order?

Some shipments are flagged for additional inspection, causing weeks-long delays. If your products violate labeling or safety regulations, they may be confiscated or returned. Knowing your country's import rules in advance can save you from major headaches when working with clothing manufacturers abroad.

What should I do if my order gets stuck in customs or returned to the supplier?

Contact your customs office immediately to find out the issue. You may need to provide additional documentation or pay extra duties. If the order gets returned, discuss with the clothing manufacturer whether they can resend it with proper compliance.

Why is sourcing clothing from European manufacturers sometimes a better option for my brand?

European clothing manufacturers typically follow stricter quality and environmental standards. While costs may be slightly higher, the reliability, product quality, faster shipping times, and reduced import issues can make it worth the investment. European clothing factories often offer better quality control and sustainable practices, which can be crucial for building a reputable fashion brand.

How do I find the best clothing manufacturers for my startup?

To find the best clothing manufacturers for startups, consider the following steps:

Research online directories and platforms specializing in clothing manufacturers.
Attend industry trade shows to meet potential manufacturers in person.
Ask for recommendations from other fashion entrepreneurs or industry professionals.
Look for manufacturers that specialize in your specific type of clothing (e.g., custom clothing manufacturers or private label clothing manufacturers).
Consider both domestic and overseas options, weighing the pros and cons of each.
Request samples and evaluate the quality, communication, and turnaround time of potential manufacturers.
Check references and reviews from other clients to ensure reliability.

What should I look for in high-quality clothing manufacturers?

When searching for high quality clothing manufacturers, consider these factors:

Experience in the apparel industry and your specific product type.
Strong quality control processes and standards.
Ability to produce custom clothing or private label products if needed.
Reasonable minimum order quantities that suit your business needs.
Clear communication and responsiveness.
Transparent pricing and production timelines.
Compliance with industry standards and ethical manufacturing practices.
Flexibility in design and production processes.
Capability to scale production as your brand grows.
Willingness to work closely with you on product development and clothing design processes.

By carefully considering these factors and doing thorough research, you can find the best clothing manufacturers to partner with for your fashion brand or clothing line. Remember that the right manufacturing partner can significantly impact your success in the fashion industry, so take the time to find top clothing manufacturers that align with your brand's values and production