Are you thinking of sourcing products from China, but worried about getting scammed?
You’re not alone.
With thousands of suppliers online, it’s easy to fall into traps—especially if you’re a first-time importer. The good news? Scams are 100% avoidable if you follow the right steps.
As a China sourcing company with over 10 years of experience, we’ve seen the red flags and helped thousands of customers source safely.
In this guide, you’ll learn:
1️⃣ Verify If the Supplier Is Legit
Before sending money or signing contracts, make sure the supplier is real—not just a middleman or scammer.
✅ Check Business License
Ask the supplier for a copy of their business license. It should clearly state they’re a manufacturer or trading company.
> Use China’s official database: National Enterprise Credit Information System to verify business status.
✅ Ask for a 17% VAT Invoice
Only registered factories in China can issue this type of invoice. If they refuse or avoid the question—they’re probably not a factory.
✅ Request Factory Audit Reports (Like BSCI or Sedex)
If a supplier claims they manufacture for big brands like Walmart or Target, ask for a factory audit report.
Then, double-check that the company name on the report matches the business license.
✅ Ask for ISO or Product Certifications
Real factories have product certifications like ISO 9001 or industry-specific safety certificates.
If they ask you to pay for the certificate or delay sending it, that’s a major red flag.
✅ Know China’s Industrial Clusters
Factories often gather in specific regions, for example:
- Baigou → Bags & backpacks
- Yiwu → Small commodities
- Shenzhen → Electronics
If your supplier is far from these zones, verify more carefully.
2️⃣ Conduct Factory Inspections (Or Hire Someone)
Visit in Person (If You Can)
Nothing beats walking into a factory yourself. You’ll see their team, machinery, quality control process, and even their real office setup.
Use a Local Sourcing Agent or Third-Party Inspector
If visiting is not an option, hire a sourcing expert in China (like our team at Dropshipme.co) to do an on-site inspection.
It’s affordable—and saves you from costly mistakes.
3️⃣ Use Safe Payment Methods
✅ Use Alibaba Trade Assurance (Or Other Escrow)
If you’re sourcing from Alibaba, always place your order using Trade Assurance. This holds the money in escrow until you confirm the goods were shipped properly.
❌ Avoid 100% Upfront Payments
Instead, use a payment plan like:
- 30% deposit to start production
- 70% after inspection and before shipping
⚠️ Always Call Your Supplier if They Send Emails to Change Bank Info
IMPORTANT:
Be extremely careful when receiving emails requesting bank account changes. Scammers often create email addresses similar to your supplier’s email, hoping you won’t notice.
What you should do:
- Always call or video-call your supplier directly to confirm any change to their bank details.
- Never trust an email alone—always double-check verbally or via video call.
If you mistakenly transfer money to scammers, it’s almost impossible to recover the funds—even if you involve local police.
4️⃣ Watch for These Scam Red Flags
Scammers often leave clues. Here are some signs to look out for:
- ⚠️ Super low prices that look too good to be true, lack details about your order, and push for quick payment
- ⚠️ Inconsistent or slow replies
- ⚠️ Refusal to video call, send certifications, or allow inspections
- ⚠️ Fake certifications (always verify online—some are Photoshopped)
Trust your instincts—if something feels off, it probably is.
5️⃣ Use Verified Supplier Platforms
Always source from trusted B2B platforms:
- Alibaba.com
- 1688.com (Use with a sourcing agent if you don’t speak Chinese)
- GlobalSources.com (Meeting suppliers face-to-face at trade fairs is always beneficial.)
Look for:
- Verified Supplier and “Gold Supplier” badges. “Gold Supplier” membership costs approximately ¥38,900/year, while “Verified Supplier” costs around ¥89,800/year, making Verified Suppliers generally more reliable. Look for suppliers with at least 3 years of experience—the longer, the better.
- Verified audits – ensure their audit reports are genuine and up-to-date.
- Trade Assurance support – highly recommended. It provides full protection for your payments, quality, and shipping time.
6️⃣ Draft a Clear Contract
A simple contract can save you from future headaches. It should include:
- Product specs (color, size, materials)
- Packaging requirements
- Quality standards and inspection terms
- Payment milestones
- Penalties for delay or poor quality
- Stamp and Signature Confirmation: Always ask the supplier to stamp and sign the contract. Double-check that the company name and the stamp name match exactly.
Pro tip: Your sourcing agent can help you draft this in both English and Chinese.
✅ Final Thoughts: Stay Safe, Source Smart
Sourcing from China can be incredibly profitable—if done right.
By verifying your supplier, using safe payment methods, and working with reliable partners, you can avoid 99% of scams.
Need help verifying suppliers, inspecting factories, or handling shipping?
Contact Dropshipme.co – Your trusted China sourcing partner since 2016.
We’ll help you source smarter, safer, and faster.
