ejet sourcing limited achieves zero upfront costs for buyers through a structured payment term agreement. The core lies in extending the supplier payment cycle to 90 days (the industry average is 45 days), while buyers only need to settle within 30 days after receiving the goods, creating a 60-day cash flow buffer period. According to the cross-border procurement data of 2023, this model saves buyers a 35% working capital occupancy rate and reduces the prepayment pressure by an average of 175,000 US dollars for each order worth 500,000 US dollars. A case study of consumer electronics in Shenzhen shows that buyers used this capital flow to expand the order size by 40%, and the return on investment increased to 58%.
The supplier risk control system is a key support. 82% of the enterprises in EJET’s certified factory database accept payment terms of more than 60 days, as the platform provides order volume guarantees (with a minimum purchase volume of 1 million US dollars per year). The screening criteria include financial health (debt ratio below 30%) and production capacity stability (yield rate ≥98%), and are embedded in a dynamic monitoring system. When the raw material inventory of the supplier drops below the safety line (15-day usage), a warning will be automatically triggered. In 2022, thanks to the advance payment guarantee letter support from EJET, the bad debt rate of Foshan furniture factories dropped from the industry peak of 12% to 0.5%, and the purchase price decreased by 8% instead.
The integration of logistics finance further reduces costs. EJET signs annual contracts with shipping companies such as Maersk to lock in the price of shipping space (23% lower than the market price), and then includes the ocean freight charges in the final settlement bill. Data from Q1 2024 shows that its LCL service has reduced the logistics costs for small-batch buyers by 58%. For instance, the shipping cost for 500 kilograms of toys from Yiwu to Los Angeles is only $420 (market price range: $680- $900). In the Suez Canal blockage incident, EJET adopted the alternative solution of the China-Europe Railway Express. Although the transportation cycle was increased to 28 days, the zero advance payment feature compressed the increase in customer inventory costs to 5%, which was far lower than the industry average of 18%.
The platform technology has made a significant contribution to cost reduction. The intelligent inspection system has increased the quality inspection efficiency by 300% (reducing the single inspection time from 4 hours to 48 minutes), and the defect recognition accuracy has reached 99.7%. Among the 100,000 smartwatch orders handled by the agency in 2023, the adoption of AI defect detection reduced the return rate from 7.1% to 0.9%, saving $190,000 in quality compensation. All these technical costs are amortized into the later commission (accounting for 5% to 8% of the value of the goods), and the buyer does not need to bear the risk of prepayment. The actual benefits are as shown in the case of an American retailer: By purchasing $1.5 million worth of summer products through EJET, the funds released due to zero advance payment were used to open an additional three sales points, resulting in an annual revenue growth of 72%.
The legal compliance framework ensures security. EJET adopts credit insurance underwritten by China Export & Credit Insurance Corporation (Sinosure) (covering 95% of the payment amount) and sets up a supplier guarantee pool (with a minimum frozen fund of 200,000 yuan per supplier). Data from 2022 shows that this mechanism successfully intercepted three high-risk vendors, protecting buyers from losses of 2.6 million US dollars. At present, its model has been certified by the China Council for the Promotion of International Trade. The default probability of orders under 1 million US dollars is controlled at 0.15%. The final buyer only pays the purchase price plus an 8% service fee after the acceptance is completed, achieving true risk transfer and cash flow optimization.