Start With a Clear Product Spec, Not a Supplier List
Small businesses often begin with a supplier search. That order creates problems. Before you contact anyone, write a one-page product spec. Include dimensions, material, weight, color, finish, packaging, labels, certifications, target price, and order quantity. Add photos or drawings. If you cannot describe the product, every supplier will fill the gaps with assumptions. The cheapest quote may be for something you did not ask for.
A simple spec also makes quotes comparable. Without it, one supplier quotes a thin version, another quotes a heavy version, and you cannot tell which price is real.
Know the Difference Between a Factory and a Trading Company
Many Chinese suppliers call themselves factories. Some are trading companies. Neither type is automatically bad. A trading company may handle several factories, speak better English, and accept smaller orders. A factory may offer a lower unit price at higher volume but may not want a small trial order.
Ask direct questions:
- Are you the manufacturer or a trading company?
- What is your factory address?
- Can you send your business license?
- Which production lines make this product?
- Do you outsource any steps, such as printing or assembly?
- How many workers are on the line?
If the answers change between calls, slow down. Vague answers are a bigger warning than imperfect English.
Use More Than One Sourcing Channel
Alibaba is a starting point, not the whole market. Good suppliers also appear on Global Sources, Made-in-China, industry trade shows, and local referrals. For consumer goods, Yiwu markets can work for small quantities. For industrial parts, trade fair catalogs and industry associations often give better leads.
A practical search plan:
- List 10 to 15 possible suppliers from at least three channels.
- Remove anyone who cannot answer basic product questions.
- Ask for catalog, price sheet, MOQ, and lead time.
- Keep 3 to 6 suppliers for samples.
- Compare not only price, but response speed, detail, and willingness to solve problems.
If you do not read Chinese, use a translator for local directories, but verify the company through official records. Chinese company names can be similar, and a storefront on a B2B site is not proof of a factory.
Verify the Company, Not Just the Storefront
A supplier can have a polished page and still be a one-person trading desk. Before you send money, check the legal entity. Ask for the business license. In China, the unified social credit code is the key number. You can check it through official or commercial databases. A local helper can read the Chinese records and compare them with the address, legal representative, and business scope.
| What to check | How to check it | Warning sign |
|---|---|---|
| Business license | Request a clear copy with company seal; check the credit code | Blurry image, different company name, or refusal |
| Factory address | Ask for map pin, live video, utility bill, or gate photo | Residential address or shared office |
| Certifications | Check certificate number with the issuing lab or body | Certificate belongs to another company |
| Export experience | Ask for bill of lading samples with private details removed | No export records for your product type |
| Customer references | Ask for two buyers in your region | Only logos, no contactable references |
| Product test reports | Verify lab name, report number, and test standard | Offers to create a report for you |
A video call can show a real workshop, machines, and stock. It is not perfect, but it is better than trusting a logo. Ask to see the production line for your exact product, not a general tour of a clean showroom.
Ask the Right Questions Before You Talk Price
Price matters, but it should come after fit. If you ask for the best price first, you may get a number that hides tooling, packaging, shipping, or quality costs. Use a supplier questionnaire.
Important questions:
- What is your MOQ for this spec?
- What is the sample cost and sample lead time?
- What is the production lead time after deposit?
- What tooling or setup cost applies?
- What packaging is included?
- Which Incoterm do you quote: EXW, FOB, CIF, or DDP?
- What payment terms do you accept?
- What is your defect rate for this product?
- How do you handle defective units?
- Can a third-party inspector visit during production?
- What is your monthly capacity?
Good suppliers answer with numbers and conditions. Weak suppliers answer with pressure, such as a discount that expires today.
Sample First, Then Run a Small Trial Order
Order a paid sample. Test it like a customer, not like a friend. Check measurements, materials, function, finish, packaging, and labels. Compare it with your spec. If the sample passes, place a small trial order before a large one. The trial is not just about product quality. It tests communication, lead time, packing, and paperwork.
For the trial, book an inspection before final payment. A basic pre-shipment inspection checks quantity, function, packaging, carton marks, and obvious defects. It costs money, but less than a container of unsellable goods. If the supplier refuses inspection, treat that as a serious warning.
Understand Payment Risks
The common term is 30% deposit and 70% before shipment. That can work with a trusted supplier, but new small buyers need more protection. Options include escrow through a platform, Trade Assurance, a letter of credit for larger orders, or a sourcing agent who holds and releases funds against inspection results.
Never pay a personal bank account. The bank account name should match the company on the business license. Confirm bank details by phone or video before sending a deposit. Email accounts get hacked, and fake bank change messages are common. A one-minute call can save your whole order.
Get Shipping and Delivery Right
Shipping is part of sourcing. A low unit price can disappear in freight, duties, and storage. Decide who handles customs clearance and final delivery. Compare Incoterms:
| Incoterm | Who arranges main shipping | Who pays main freight | Best for |
|---|---|---|---|
| EXW | Buyer | Buyer | Experienced buyers with a Chinese forwarder |
| FOB | Seller loads to port; buyer pays freight | Buyer | Most new importers |
| CIF | Seller arranges freight and insurance | Seller, included in price | Simple quotes, less control |
| DDP | Seller delivers to your door | Seller, included in price | E-commerce sellers who want door delivery |
Check HS codes, duty rates, and product compliance before production. Some products need certificates, labels, or testing for your market. Fixing compliance after the goods arrive is expensive.
Watch for Common Red Flags
No single red flag proves fraud, but groups of them matter. Walk away or slow down when you see:
- A price far below other quotes for the same spec
- Pressure to pay within hours
- Requests to pay a personal account
- No business license or a license for a different company
- Vague answers about factory location, capacity, or materials
- Free samples with unusually high shipping fees
- Refusal of third-party inspection
- Bank details changed by email after the order
- No written record of changes, only phone promises
Keep everything in writing. After each call, send a short email: what was agreed, price, quantity, lead time, and next step. Ask the supplier to confirm.
Build a Supplier Relationship That Lasts
A reliable supplier is not only the cheapest one. It is the one that answers questions, keeps deadlines, and tells you when something goes wrong. Pay on time. Give clear feedback. Do not ask for impossible discounts that force corners to be cut. Keep two or three approved suppliers for your main product. If one factory is full or fails an inspection, you can move without starting over.
If you can visit China, plan factory visits with an interpreter. If you cannot, use live video audits, third-party inspections, and a local contact who can show up in person. The goal is not to trust blindly. The goal is to build proof step by step.
When to Bring in Local Help
Sourcing from China as a small business is possible alone, but the learning curve costs time and money. Language, company checks, factory visits, inspections, consolidation, and shipping can take more hours than a small team has. If you want a local team to handle sourcing, factory checks, inspections, and delivery in China, Globesino can act as your on-the-ground partner.