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 scams, fake or simply as Chinese suppliers you need to watch out. That is why how will you the with if your Chinese supplier is legitimate and you can trust him?
If you find issues in finding a reliable Chinese supplier than don’t worry you are not the only one according to a survey conducted by Global Sources says that most of the businesses say finding a reliable Chinese supplier is their biggest problem when it comes to importing product from China.
When it comes to verifying the potential 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 those ways which will help you find out that your Chinese supplier is reliable or not?
1. Use Chinese supplier directories and search engine:
When it comes to search, you need to search the supplier’s name on various B2B directories including HKTDC, Global Source, Alibaba and many more.
It 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 listing on these e-commerce platforms.
Also, check that these websites are in business for more than two years as they will have a good reputation and experience too.
Also, search the supplier on Google along with keywords review and scam to fetch any scamming history and what people have to say about them.
2. 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 are why they provide a false one including name, address, and telephone number.
A good way to catch them is to make a call and make sure they have provided landline number instead of 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 with any, please note it down for further research.
3. Check their business license:
Now 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 government authorities and if they are unable to provide you unique registration number, it is too risky to continue your deal with them. If they provide you, verify registration number with local administrative government website or Industry Commerce or local Bureau.
4. Get a sample:
Always ask for a sample to check the quality of the product in hand and see that they are delivering what they have promised or not. You will also get to know that you are receiving what you are looking for. Make sure that before proceeding your business you always ask for a sample even if you have to pay for it. It will also give you information about their bank and transaction. If they are not providing you with official bank details, there are probably not serious about doing business as well as there can is a scam involved.
5. Ask for previous business and reference:
You should ask for the financial creditworthiness of your supplier, therefore, asks their bank reference letter and to check that they are providing you right experience, ask for the previous customers as a reference to contact them. You can also ask those companies that they have used products from similar Chinese supplier or not.
6. Money matters:
Well, another best way to see that your Chinese supplier is legit or not is to ask them that their local agent will pick the sample or products from your address and they will pay cash. The scammers will never agree to this bit legit supplier will.
7. Conduct (or at least pretend to) factory audit:
Ask your potential Chinese supplier that your team will audit their company and products before any purchase order and will agree to proceed with the business deal only if they pass the production inspection. Make sure that you clearly mention it in your first encounter and email so if the supplier makes excuses or refuse to see that as a red flag.
8. Make good use of various databases:
Always check and search the details on a database of the Chinese Supreme Court and see that any scam is listed on the name of your supplier or not. It can also give details of any previous case or bankruptcy as well.
9. Check the background from China Checkup:
You can also use any third party authentication service like China checkup or GIoBIS to see the business credit report of your potential Chinese suppliers including their shareholder, financial records and legal representatives.