Choosing a china supplier is no easy task. No amount of care is going to be helpful in ensuring absolute safety unless you carry out the right due diligence. Still, there is no guarantee that any transaction can be 100% safe let alone with China suppliers but not applying these fundamental tests may walk you to ruins and will have all of yourself but no China suppliers to blame for.
Firstly, you need to beat the laze and haste both of which are against the principles of due diligence. You will need to be all of eyes when you do the due diligence in order to steer clear off the frauds that galore around import/export business.
Steps in Due Diligence to Choose China Suppliers
Cost test: Dont enter a market in which you have no competitive knowledge as you will not be able to judge suppliers through cost parameter. Alarm bells must ring if the asking price is beyond 30% of market on any side. If this is extremely low, you must be instantly able to tell something is amiss, so that you can take steps cautiously.
Contact test: Get telephone numbers not cell numbers and check whether they are real. Check whether addresses given by China suppliers match the addresses available with domain registrars. Search for the address to ensure that numbers belong to the address provided by the china suppliers. Use the URL
http://www.numberingplans.com//?page=analysis%E2%8A%82=phonenr for China numbers. Use Google maps to cross-check the numbers and addresses again.
Preferred Mode of payment Test: Secure and dependable modes of payment are bank transfer, letter of credit, PayPal and escrow accounts etc. Should any of China suppliers ask for Western Union or TT, it must alert you. Not any legitimate business in international trade can ignore those trusted methods of payment. Look for other China suppliers.
Communication test: Legitimate companies dont normally use free e-mails; instead they have email@example.com kind of mail IDs. However, regardless of the size, exporters would prefer to use telephone, not emails or chats for communication. You can also get suspicious of these China suppliers when they come online at odd hours to their country. You can notice this after doing a little tracking.
Background test: China suppliers enlist on websites that rate them with five stars which is meaningless in international trade. Straightaway, ask for 5-6 verifiable customer references. Needless to say proud China suppliers will have their previous customers for the occasion. Obviously, you need to check that customers emails are not created by these people.
Touch and feel Test: Unless you are ordering a sample quantity (which is one of the tests preceding this) you will need to actually touch and feel your trading partner and the product. Pay a surprise visit China suppliers factories, f they know you are coming you may fail to pickup what you are expecting to as they’ll be on it quickly.
This checklist is no comprehensive for checking china suppliers. Google and Sourcing Review can be your good friends in locating the right China suppliers.