You have come across a Chinese supplier on the Internet. The company looks good. There is the potential for a business opportunity that can definitely take off. So how do you ensure that you do business with genuine suppliers you can trust?
When you verify potential suppliers, you basically consider the following two aspects:
Does the supplier have the ability to create the item you want to buy? Is the organization a real business with a proven track record and not a scam, or maybe a small business on the brink of bankruptcy?
Use online search engine & Chinese suppliers' directories
When searching for a supplier's company name, you'll find material produced by them in some B2B web directories, such as Alibaba, Global Sources, Hong Kong Trade Development Council, and more.
These areas are a great place to start looking for reviews, getting testimonials, and asking questions, but watch out for users who are just trying to sell themselves. For example, pay attention to how long the supplier has been in operation (it's good to do business with suppliers who have at least 2-3 years of interest).
Additionally, many B2B marketplaces often offer verification services, such as those provided by Alibaba, so this will make your life easier when it comes to determining whether you can trust a particular supplier.
Also, by googling, you may also come across information, for example, if the supplier attended a trade show recently, this is a good indication that you are talking about the respected Chinese wholesale online. Renting a booth and attending trade shows will be considered an asset in acquiring new customers. Repeated appearances at trade shows also mean that suppliers are serious about cultivating relationships with customers.
Make a telephone call
To avoid being tracked by the police, most scammers do not provide legitimate registration information online. For example, they will provide false business addresses, fax and phone numbers, or persuade buyers to contact them only by cell phone.
Call the Chinese supplier's landline, you can ask for the business registration number and business license number on the phone. If the provider only carries mobile numbers and not landlines, an alarm must be going off in your head. In China, people can buy a large number of mobile phone numbers without restrictions. This is why scammers often use mobile numbers instead of landlines.
Check business licenses
Chinese suppliers need to register with the Chinese government and obtain a unique business registration number. If your supplier may not be able to provide you with a unique business registration number, it is very risky to continue working with them. To confirm the registration number, go to your local administrative federal website or call your local bureau of industry and commerce.
To confirm the supplier's financial credibility, ask for a reference from their bank. To check a supplier's track record in creating high-quality clothing, ask their previous customers for guidance, and don't be reluctant to communicate with them.
Likewise, if you know some other brands in your business why don't you communicate with them, you can seek advice from any Chinese supplier they have used.
Get a sample
Whether you're buying Chinese clothing or other products from a China wholesale suppliers, ask for a sample - just in case you have to pay for it. When you have a sample in hand, you can check the quality to make sure the item is exactly what you are looking for.
Also, if you have to purchase original sample charges, please request that cash be remitted to the potential supplier's organization bank account. If they can't give you this information, they're almost certainly not interested in doing business.
Additionally, you can refer to the supplier's audit report (if), which provides an unbiased on-site report on their manufacturing and trading capabilities.
When we talk about cash, regarding payment, please tell your potential Chinese supplier that you would like your neighbor's representative to get your product from their address and they will pay for the delivery. Find out if they enable this feature. Scammers will never agree, but real legitimate suppliers will.
Among MoneyGram, Western Union, TT, and Plus are the most typical charging methods in China, but excellent suppliers also accept PayPal. Always be careful using untraceable wire transfer services to transfer money with providers you don't know - these are vulnerable to fraud and the risk is high.
Conduct factory audits (or at least pretend to)
Tell potential suppliers that you will be auditing their factories before each purchase order is issued, after which they will need to inspect their manufacturing before approving any shipments. Mention it the first time you meet you or in an email. If the vendor refuses or starts making excuses for the exact reason it's not a good idea, that's a red flag!
Factory audits are the right tool to confirm a supplier's statement about their creative ability. Many quality management companies and even several purchasing agents are able to audit factories against a checklist corresponding to your requirements.
Go to the company or even factory in person
This is the easiest way to verify your supplier - you won't know much about a company unless you go there. You can also get to know your merchandise, quality inspection, price and delivery time expectations face to face.
The most effective way to reduce fraud (whether you are transacting on the internet or offline) is ideal for buyers and sellers to do proper due diligence and research before entering into certain transactions. Be meticulous about this particular verification process and you'll know if your potential supplier is trustworthy.
Finally, when you have established a good working relationship with a respected Chinese supplier, don't forget to monitor their ongoing standards by conducting typical supplier quality inspections.