How To Source And Verify Reliable Chinese Wholesale Suppliers
A business opportunity exists that has the potential to take off. But there are plenty of fakes, cons, and poor Chinese vendors to beware of. So how can you be certain you’re doing business with a reliable, reputable supplier? A Chinese supplier can be found using a variety of methods.
You’re not alone, so don’t worry. According to most companies surveyed by Global Sources, verifying Chinese suppliers is the single largest challenge when purchasing goods from this nation.
While you’re checking out a possible provider, you should be looking at these two things:
- Are the items you want to purchase capable of being produced by the supplier?
- Is the business reputable, legitimate, and not a fraud or corporation about to file for bankruptcy?
Examine all of the policies, returns, damages and backorders on Chinese wholesale websites, and ensure their contact details and physical address are readily available before you contact Chinese wholesale suppliers.
Search “[business name] + scam,” “[company name] + dishonest,” and a few variations on Google or Bing. Other wholesalers and merchants with a negative experience with China wholesale suppliers frequently attempt to leave a digital trail about it.
Outsource to Sourcing Agency to Find Reliable Chinese Wholesale Suppliers
Purchasing agents make excellent partners. It aids in finding superior materials and practically any product you choose. A sourcing agency serves as a one-stop import service and provides a variety of services, such as:
- Purchasing of goods
- Sourcing
- Negotiating
- Logistics and shipping
- Quality Assurance
- Production Audits
Assistance From A Sourcing Agency To Verify Business Licenses
Suppliers from China must register with the Chinese government and get a special firm registration number. The sourcing agency can check the registration number online by contacting the local Bureau of Industry and Commerce or by going to the website of their administrative government. You shouldn’t do business with a provider if they didn’t give you a specific company registration number since doing so is too dangerous.
Get References
The sourcing agency requests reference letters from the supplier’s bank to confirm the supplier’s financial creditworthiness. Ask for references from the supplier’s prior clients, and don’t be afraid to contact them to verify whether they have a history of creating high-quality goods.
Factory Audits Can Be Conducted With the Use of Sourcing Agencies
Inform prospective suppliers that you’ll audit their factory before any Purchase Orders are issued and that you’ll later want to verify their output before any shipments are approved. In your initial conversation or email, mention it right away. A warning sign is if the provider declines or starts giving reasons why it wouldn’t be a good idea.
The costs for a day’s work in the primary production sectors range from $300 to USD 900. A sourcing agency’s factory audits are the ideal method for confirming a supplier’s claims regarding their level of production capacity. Most quality control companies and some sourcing agents can inspect a facility using a checklist that fits your requirements.
You can order a report from Sourcing Agency’s third-party authentication services, where their business credit report service will give you details on your potential Chinese supplier, including information on their legal representatives, stakeholders, business model, financial records from the previous three years, and other information tailored specifically to the needs of foreign buyers.
About Money
Since we’re on the subject of cash, when it comes to payments, let your prospective China suppliers know that you want your goods picked up by your sourcing company from their address and that payment will be made upon delivery. Check to see whether they permit this. Scammers won’t consent to it, but trustworthy vendors would.
Moreover, the most popular payment methods in China are TT, Western Union, and MoneyGram, while reputable vendors often take PayPal. Use of untraceable wire service transactions with vendors you don’t know is always advisable because they carry a significant risk of fraud.
See The Factory Or Industry In Person.
Before deciding to board a plane and visit a potential supplier’s office or factory in person, go through the earlier stages described in this article and narrow down your choices because it is impossible for you to visit each potential supplier you have in mind. You may also discuss your expectations for delivery times, quality assurance, prices, and items in person. This is the greatest technique to confirm your suppliers because until you go to an organisation in person, you won’t know very much about it.
Key Points To Understand:
Whether you are trading offline or online, the best approach to reduce fraud is for buyers and sellers to perform adequate due diligence and research before entering any transaction. If you conduct this verification procedure carefully, you will learn whether you can put your potential supplier’s word in good hands. You will benefit greatly from working with the sourcing agency because they assist with product procurement, prechecks, quality checks, and checks before shipping. As a result, you can have confidence in the business you are funding to source the goods from China.