How to Check if a Chinese Supplier is Legitimate: A Practical Guide for Importers

A factory audit can help confirm if a supplier can actually produce what they promise. This is an inspection of their facility to see if they have the right equipment, enough workers, and the ability to meet your quality standards. Mention early in your discussions that you might want to perform a factory audit. A trustworthy supplier won’t mind if you or a hired quality inspector visits their site before you place a big order.

Many quality inspection services in China can arrange a factory audit, often for a reasonable fee, usually between $200 and $900. You don’t have to visit in person if that’s not possible; these services can do the inspection on your behalf. The audit will give you a clear idea of the factory’s capabilities and any potential issues, which can save you money and time in the long run.

If a supplier refuses an audit, or if they keep giving you excuses, consider this a serious red flag.

4. Call the Supplier Directly

Having a real conversation with the supplier can be very revealing. Reliable suppliers will often have a landline phone number listed, which is harder to fake or hide. Mobile numbers are easier to buy anonymously in China, so scammers tend to avoid landlines. Call their landline and ask for specific information, like the company registration number and business license.

If they only have a mobile number or avoid talking on the phone, this could be a sign they aren’t entirely above board. Also, try to avoid suppliers who rely on messaging apps like WhatsApp or WeChat for serious business matters. While these are popular for communication, a professional company should be reachable by phone and email too.

5. Review Their Payment Terms Carefully

Another way to gauge if a supplier is legitimate is through their payment terms. Most legitimate suppliers will accept secure payment options like PayPal or Alibaba Trade Assurance. They may also allow bank transfers. Scammers, however, often insist on wire transfers or payments through Western Union and MoneyGram. These services make it difficult to get your money back if there’s an issue.

You can suggest paying part of the balance after seeing the goods or upon delivery. Some legitimate suppliers may even allow cash on delivery if you have a trusted agent who can inspect the goods upon pickup. Scammers, on the other hand, will usually avoid any payment terms that give you extra security.

6. Check Their Physical Location

Many scams use fake addresses, so confirm the physical address of your supplier. You can cross-check this by searching the address online or using Google Maps to see if it’s a commercial building. In some cases, it might be worth sending a small, inexpensive package via a reliable courier to see if it reaches them.

If the supplier is hesitant about sharing their full address or if they give you a vague answer, take caution. A legitimate supplier should have no issues sharing their full business address.

7. Ask for Customer References

Ask the supplier if they can provide references from previous customers. Many legitimate companies are happy to do this. They might not share details of high-profile clients due to confidentiality, but they can provide general references or testimonials.

You can reach out to these past customers to ask about their experience. If they had any issues with product quality, delivery times, or customer service, they’ll likely mention it. This feedback is invaluable, especially if you’re planning a large order.

Keep in mind that if the supplier refuses to give you any references, this could be because they don’t want you to speak to other customers or because they don’t have any.

8. Search for Signs of Activity

Genuine suppliers usually have a digital footprint beyond just their own website. Look them up on social media or industry websites. Check if they attend trade shows, like the Canton Fair, or if they have any certifications that verify their participation in industry groups.

A lack of online presence doesn’t always mean a supplier is a scam, but a solid presence can give you confidence that they’re established in the industry. Companies that have been around for years usually have a paper trail online.

9. Ask for Product Samples

Ordering samples is a simple way to check quality and reliability. Many suppliers will send samples for a fee, which allows you to inspect the quality, durability, and any potential issues. This gives you a firsthand look at what they’re offering.

If they refuse to send a sample, it might mean they can’t actually produce the product or don’t have it available.

Real-Life Examples of Issues With Unverified Suppliers

• Inflated Costs After Payment: One buyer paid a supplier upfront, only for the supplier to hike prices after receiving payment. They later found out the supplier was using a fake address and untraceable contact details.
• Fake Location: A European buyer found a low-cost electronics supplier online, but when they visited the “office” location in China, they found it was vacant. The building manager explained that the company had moved out months ago, with outstanding bills.
• Refusal to Verify: Another buyer wanted to purchase parts but relied on just a few online chats and emails. When they checked the address, it was nonexistent, and there was no official business registration.

Using Verification Services Like SourceGuy

If this process seems daunting, consider working with a service like SourceGuy, which offers verification checks specifically for Chinese suppliers. They can help with:

• License Checks through the NECIPS database
• Factory Audits to verify production capacity
• Reference Checks to get feedback from previous customers
• Product Sampling to check quality
• Secure Payment Methods to reduce risk

SourceGuy can help simplify the verification process if you’re dealing with a high-value order or want peace of mind before investing.

Here’s a SAMPLE of a factory audit report that we did for our client: