In most stories that end badly, the money leaves before anyone has asked the right questions. Our previous article presented three tools for checking a supplier: 1688, Pinduoduo and QCC. This one goes further: seven signs that should make you slow down, and what to do when you see one.
A single sign proves nothing. Two or three at the same time mean it is time to stop.
1. Urgency with no reason
“Price valid today only”, “last batch in stock”, a deposit requested within the hour. A genuine manufacturer gives you a quote valid for several days, often several weeks. The pressure has one purpose: to stop you from checking.
The answer is simple: “I pay after verification. Send me the proforma invoice and the contract.” A serious supplier will agree.
2. A bank account that is not the company’s
This is the most important sign. For any significant amount, the beneficiary of the transfer must carry exactly the company name written on the contract and on its business licence. Be wary of an account in a person’s name, a request to pay into a personal WeChat or Alipay account, or a bank that has no connection with the company.
Apply the same care if the bank details change between the proforma invoice and the moment you pay: it is the most common invoice fraud. Call the supplier on a number you already had, never on the number in the message announcing the change.
3. A factory you cannot see live
Photos and videos prove nothing: they can be copied. Ask for a live video call and have them do something simple on the spot: show the machine that makes your product, the front of the building with the address, a sheet of paper with today’s date and your name.
A supplier who refuses, postpones every meeting, or “has no network” each time deserves the greatest caution.
4. A trading company presenting itself as a factory
It is not always a scam: many trading companies are honest. But if you are promised a “factory price” and you are in fact dealing with an intermediary, you pay a margin you believe you are not paying, and you have no control over quality.
On QCC, look at the company’s business scope: manufacturing (生产) or trading (贸易)? Check the address on a map too: does the place look like a factory or just an office?
5. Certificates that cannot be verified
CE, ISO, test reports: a PDF is not proof. Ask for the certificate number and the name of the body that issued it, then check with that body or in its public register. A certificate whose number the supplier will not give, or one issued in another company’s name, is a bad sign.
For some products (electrical cables, mains-powered appliances, children’s products, health products), the lack of a valid certificate can also hold your goods at customs in your own country.
6. A price too good to be true, with no explanation
A gap with the market is not proof of dishonesty, as we explained in the previous article. But a price far below every other quote should be explained before you pay. Ask what the difference is made of: material, thickness, finish, packaging, standard.
If the answer is vague, the goods delivered will be vague too.
7. No contract, no inspection before shipping
A proforma invoice sent by chat is not a contract. A good contract states the product (specifications, material, standards), the quantity, the price and currency, the payment schedule, the delivery time, what happens in case of defects or delay, and who inspects the goods before they leave.
Ask for a pre-shipment inspection carried out by someone independent of the supplier, and release the final payment only after it. A supplier who refuses any inspection either has something to hide or does not trust its own production.
How to pay to limit the risk
No payment is risk-free, but you can spread the risk. A limited deposit (30% is a common order of magnitude, to negotiate by product), the balance after inspection and before shipping, always by bank transfer to the company’s account. For small orders, a platform that holds the money in escrow until delivery can offer protection, within the limits of its terms. Avoid payment methods that cannot be recalled, such as cash transfers or cryptocurrencies.
If you have already paid and have doubts
Call your bank the same day: a transfer recall request has a better chance of succeeding when it is made quickly, with no guarantee. Keep every message, the proforma invoice, the proof of payment and screenshots. Report the fraud to the police and, if you are in Canada, to the Canadian Anti-Fraud Centre.
Going further
Read our article Three checks before you pay a Chinese supplier, which explains 1688, Pinduoduo and QCC. One of our case studies shows what a factory visit made on the spot changes. You will also find answers to many questions in our FAQ.
Our team is based in Foshan, in the heart of China’s factories. We check suppliers on site, inspect goods before shipping and organise transport: that is our product sourcing service. If you have a specific project, write to us: the first conversation costs nothing.