Know a Company and Trade Safely

Knowledge and insights on company search and due diligence in China


Six tips for avoiding supplier scams when importing from China

Six tips for avoiding supplier scams when importing from China

Company search and compliance | 2023-03-19

Importing products from China can be a lucrative business, but it also comes with its own set of risks. One of the most significant risks is falling victim to supplier scams. These scams can cost you a lot of money and cause considerable stress. Here are some tips on how to avoid supplier scams when importing from China.

1. Research the supplier thoroughly. 

Before doing business with a supplier in China, it is essential to research them thoroughly. Look for reviews and feedback from other customers who have previously worked with the supplier. Check their website and social media presence to see if they have a legitimate online presence. Also, ensure they have a business license and are registered with the relevant government agencies in China.

2. Verify the supplier's credentials. 

It is essential to verify the supplier's credentials before placing an order. Ask for their business license and registration number, then verify this information with the appropriate government agency in China. You can also ask for references and speak to other customers who have previously worked with the supplier.

3. Be wary of low prices.

A low price is one of the most common signs of a supplier scam. If the price seems too good to be true, it probably is. Be wary of suppliers who offer prices significantly lower than their competitors. They may be cutting corners or using inferior materials, resulting in poor-quality products.

4. Don't pay upfront.

Avoid paying for the products upfront before receiving them. Scammers often ask for full payment upfront and disappear without delivering the products. Instead, use a secure payment method such as PayPal or Escrow to protect yourself.

5. Inspect the products before shipment.

Before the products are shipped, make sure to inspect them thoroughly. Check the quality and quantity of the products to ensure that they meet your standards. If you find any issues, address them with the supplier before the products are shipped.

6. Use a reputable freight forwarder.

Choose a reputable freight forwarder to handle the logistics of shipping the products from China. A good freight forwarder can help you avoid scams and ensure the products are delivered safely and on time.

In conclusion, importing from China can be a profitable business venture, but it is essential to take precautions to avoid supplier scams. By researching, verifying the supplier's credentials, being wary of low prices, not paying upfront, inspecting the products before shipment, and using a reputable freight forwarder, you can protect yourself from potential scams and ensure a successful import experience.

- End -

Read more articles ...

When seeing these red flags during a company background check, you should consider not partnering with that supplier

When seeing these red flags during a company background check, you should consider not partnering with that supplier

Due diligence | 2023-06-04

As a service provider in company search services in China, our clients frequently ask us the following questions"I want to know whether the business of this company in China is legitimate?","Is this company listed in any blacklist?", and"Just need to ......

Read the full article

Log in to view summary of purchased reports and search history

Log in to view summary of purchased reports and search history

Use knowaco.com | 2024-02-06

Recently, we have added a login feature to the website. The initial design of Knowaco.com aimed to provide services with minimal user information logging. With the increase in service volume, more and more users wish to view summarized search records ......

Read the full article

Our tools

Instant Company Search

Search Chinese companies and get search automatically generated reports in minutes

See a sample report

Conduct a search

Knowledge Center

We write articles about knowledge and insights for conducting company searches and due diliegnce for Chinese companies. The articles are based on our extensive local experience.

Explore more articles

Our e-book

Know-A-Company Checklist

A checklist for conducting background checks on a Chinese supplier before purchasing from it


site-logo

We provide tools and services on public information search for companies in China. Our mission is to organize public business information in emerging markets and make it accessible through automated tools and value-added services to provide insights into your business decision.

© 2024 Knowaco.com - All rights reserved.