China supplier verification: your business is safe

Verification of Chinese suppliers is a sought-after, useful and in most cases a mandatory service. The growing economy of China attracts not only businessmen and buyers of all kinds of goods. Fraudsters also rushed to China. The specificity of the Chinese market is such that even the simplest fraudulent schemes work here. To protect yourself and minimize risks, the help of experienced intermediaries is required. They are well-versed in China and are able to carefully check potential partner – a Chinese company before entering into a contract.

Possible risks

Intersafetrade company, for many years of practice, has come across a variety of fraud methods. Clients tasked our employees to check a factory, plant or supplier. During the audit, schemes of outright deception were revealed. Here are some of the most common ways of cheating:

Shel companies. Online trading is the most popular way to do business. Fraudsters register a company, place ads on the Internet (including on the most popular sites), collect orders, receive an advance payment and disappear. Remote trading and online payment made this type of fraud the most common. Without checking the supplier in China, it is impossible to eliminate fraud.
Mismatch of the parcel's content. There is a lot of information about how instead of ordered things you get completely different ones (or even “empty”). It is practically impossible to check the truthfulness of product descriptions, their quality, availability of genuine certificates online. At best, you can find negative reviews that are often “refuted” by dozens of positive ones. And in this situation it is quite risky to enter into an agreement and transfer money without checking suppliers in China.
Unreliable descriptions. Quality requirements are a prerequisite for successful trading. Unscrupulous manufacturers may position their products as high-quality, but in fact the data are greatly exaggerated. If it is not possible to verify the accuracy of the description on site, the risk of getting a poor-quality product increases. There is no guarantee even if under the terms of payment a trial lot is sent to you before the full amount is transferred. Test purchase of a small batch can be a kind of “hook”: you will be sent an excellent product, but in the main order you will receive products with significant drawbacks.
Exaggerated capabilities of the manufacturer. When developing the market, it is necessary to check carefully the production. This will confirm you any expert. In China, for a huge plant can be issued an underground shop with a small staff. Any facts are exaggerated: production facility and capacity of factories, duration of the operating time on the market, quality and quantity of products, certifications and permits, etc. To verify the legitimacy of activities and truthfulness of all these facts is the duty of a responsible businessman. It will help to avoid risks, economic losses and loss of own reputation.

These are just a few examples that show how important it is to check a potential business partner. The company Intersafetrade understands its level of responsibility to customers, so it checks every company and supplier before recommending it for further work. This approach allows to avoid economic losses from unfair transactions.

How Chinese suppliers are verified

To verify suppliers from China, an integrated approach is important. Multi-level control has proven its effectiveness: this system allows you to identify the slightest flaws at any stage of cooperation. When client gives us a task to verify suppliers and manufacturers, our employees start working directly in China.

Verification steps:

collection of information on a specific market segment: customer reports his requirements for the product and search begins according to the named criteria;
Interviews with leaders of well-known and trusted companies: personal contacts provide first-hand information, answers to key questions regarding production volumes, raw materials, and technologies;
visit to an enterprise (factory, plant, supplier’s warehouses, etc.): a specialist’s visit of production allows you to estimate personally the size of production, quality of products, and review the documentation;
verification of documents: internal documents (reports, audit results, etc.), originals of permits, certificates (quality, security, permits to trade abroad, etc.) must be examined;
reputation assessment: requests are sent to tax and law enforcement agencies, reviews of local business partners and materials in the press are studied, information on membership in international organizations is searched, etc.

On the basis of conducted researches the conclusion which includes several points is issued:

the veracity of data about the manufacturer or intermediary;
compliance with price-quality parameters;
evaluation of the documents provided.

The expert assessment is confirmed by photo and video materials.

Further collaboration

An Intersafetrade employee during the inspection of suppliers from China at the request of the client may:

discuss the terms of the upcoming cooperation;
find out the cost of wholesale batches (price often depends on the volume of purchases);
arrange a personal meeting;
receive a commercial offer;
agree on the delivery of samples and test batches;
reduce the amount of prepayment.

These and other instructions are carried out within the framework of cooperation. If you decide to make our experts your representatives in China, we will continue to check manufacturers and suppliers. Such service may be required:

when expanding business;
in the development of new segments and the search for promising areas;
when sending goods to the customer (it is easier to check the goods for quality and consistency in our own Intersafetrade warehouses, and, if necessary, correct the shortcomings before sending).

It is necessary to check Chinese partners (manufacturers and suppliers). This stage of building your own business will allow to:

exclude work with unscrupulous companies;
prevent economic losses from fraudulent schemes;
find the best suppliers in any segment;
choose the most advantageous offer.