Unless you are a manufacturer, when you want to sell online through your own online store or the third party website like eBay and Amazon, you will have to procure the products to sell.
In that case, it is very likely that you will choose to acquire the products from China. In recent times, China is becoming the leader in global suppliers whether to the big businesses or to the medium and small enterprises.
If you are embarking on the business and want to procure products from China, you might be wondering how to choose a reliable Chinese supplier. A simple Google search can give you a list of Chinese wholesale suppliers.
However, this might be overwhelming because you cannot trust any random suggestion from Google. Alibaba, AliExpress, Banggood, GearBest, DHGate, Global Sources, and Chinabrands are some of the suggestions you get. These eCommerce sites are packed with Chinese suppliers, manufacturers, and sellers.
Finding Chinese Suppliers for Business
When it comes to business, you can find many Chinese online suppliers. Their organization and website might look alright and great, and you can plan your business opportunity with them but wait!
There are many scammers out there. After placing an order and making the payment, these so-called sellers, manufacturers, and sellers might just disappear. And it is quite impossible to fight a legal battle when you are doing online business.
Therefore, it becomes imperative to check the legitimacy of the supplier, manufacturer, and sellers. If you find issues in finding a reliable Chinese supplier, you don’t have to worry as you are not the only one according to a survey conducted by Global Sources. a large number of participants said that have a difficulty in finding a reliable Chinese supplier and this is their biggest problem when it comes to importing product from China.
When it comes to verifying the legitimacy of your supplier you have to have a look at these major aspects:
- Does your supplier have the capacity and ability to produce the products you want to buy?
- Does this company has a legitimate business history and reputation and is it involved in any scams or bankruptcy?
In this article, you will find out the methods that will help you to find out whether your Chinese supplier is reliable or not.
Use Chinese Supplier Directories and Search Engines
Research is the first step in determining the legitimacy of your Chinese supplier. You need to search the supplier’s name on various B2B directories including HKTDC, Global Source, Alibaba, and many more.
This will give you a complete review of the supplier, and if they are not on these major websites, there is something really fishy about it. On the other hand, if they are already on these sites, your major work is already done as they have a complete verification process and they are much reliable if they are listed on these e-commerce platforms.
Also, check whether these websites are in business for more than two years or not. Longer they are in business, more reputation and experience they have. make sure you verify your finding on Google search. Searching the supplier on Google along with keywords review and scam to fetch any scamming history and what people have to say about them will be a great help.
Make a Phone Call
Most of the scammers don’t provide correct and genuine registration information online as they don’t want to get traced by law enforcement authorities that’s why they provide false information including name, address, and telephone number.
A good way to catch them is to make a call and make sure they have provided a landline number instead of a cell phone. While you are on call ask your Chinese supplier questions related to the business licensee and company registration number and see what they answer. If they provide you any information, please note it down for further research.
Check their Business License
Once you have made a phone call, you can now ask for their business licenses. Chinese suppliers have to get registered to obtain a company registration number from Chinese authorities. If they are unable to provide you unique registration number, it is too risky to continue with your business deal. If they provide you, verify the registration number with the local administrative government website or Industry Commerce or local Bureau.
Get a Sample
Always ask for a sample to check the quality of the product and see whether they are delivering what they have promised. You will also get to know that you are receiving what you are looking for.
Before proceeding with your business, make sure to ask for a sample even if you might have to pay for it. This will also give you information about their bank and transaction. If they are not providing you with official bank details, they are probably not serious about doing business, and it is very likely that they are involved with a scam.
Ask for Previous Business and References
One of the easiest ways to find the legitimacy of the supplier is by asking about their previous clients. You can then verify their claim independently.
Also, check their rating score and reviews on the directories and ecommerce stores where they are listed. You also should ask for the financial credit score of your supplier, such as their bank reference letter so that you get the right information.
Money Matters
Well, another best way to check whether your Chinese supplier is legit or not is by telling them that your local agent will be picking a sample from their office and pay when the agent comes to the office to collect the sample. The scammers will never agree on this but a legit supplier will.
Conduct (or at least pretend to) Factory Audit
Ask your potential Chinese supplier that your team will audit their company and products before any order is placed. State that you will proceed only when they pass the production inspection. Make sure that you clearly mention this in your first encounter and email. When the supplier makes excuses or refuses, this is a red flag.
Make Good Use of Various Databases
Always check and search the details on a database of the Chinese Supreme Court. You can see whether any scam is listed on the name of your supplier. This can also give you details of any previous case or bankruptcy as well.
Check the Background from China Checkup
You can also use any third party authentication service like China checkup or GIoBIS. This will let you see the business credit report of your potential Chinese suppliers. This includes their shareholders, financial records, and legal representatives.
