Here are 10 ways to find & verify Chinese suppliers you can trust

1. Use search engines & Chinese suppliers’ directories Open Google or Bing and search “[company name] + scam,” “[company name] + dishonest,” and a few variations. Other distributors and retailers who had a bad experience with China wholesale suppliers often try to leave a trace about it on the web. many B2B marketplaces usually offer verification services such as this one provided by Alibaba, so it makes your life a lot easier when it comes to determining if you can trust a particular supplier or not.

2.Make a phone call Make a phone call to the China supplier’s landline and ask for the company registration number and business license number while you’re at it. An alarm should sound off in your mind if a supplier only has a mobile number and not a landline.

3. Check business licenses Chinese suppliers have to register with the Chinese government authorities and obtain a unique company registration number. If your supplier is unable to provide you a unique company registration number, it’s too risky to continue dealing with them.

4. Ask for references To verify the supplier’s financial credit worthiness, ask for their bank’s reference letters. To check up on the supplier’s track record in producing top-quality items, ask for their previous customers as a reference and don’t hesitate to contact them too.

5. Get a sample Whether you’re buying wholesale clothing in China or any other product, ask for a sample item – even if you have to pay for it. When you have a sample in your hands, you can check the quality to ensure the product is exactly what you are looking for.

6. Money matters While we’re on the topic of money, when it comes to payment, tell your potential China suppliers that you want to get your products picked up by your local agent from their address, and that they will pay cash on delivery. See if they allow for this. Scammers will never agree to it but real legit suppliers will.

7. Conduct factory audits (or at least pretend to) Factory audits are the right tool to verify a supplier’s claims about their production capability. Most quality control firms and some sourcing agents can audit a factory based on a checklist that corresponds to your needs.

8. Make good use of databases Search through this database of the Chinese Supreme Court. Type in the Chinese name of your supplier and see if you find it there. You will be able to find out if they have been given a sentence and if they failed to pay damages. Unfortunately, this site is available only in Chinese. However, a Chinese contact or your Chinese sourcing agent should be able to help you with this translation step.

9. Background checks on the cheap You can order a report from third-party authentication services such as GloBIS, where their business credit report service will provide information on your potential Chinese supplier, including legal representatives, shareholders, business scope, financial records from the last three years, and other information.

10. Visit the company or factory in person The best way to reduce fraud (regardless of whether you’re trading online or offline) is for buyers and sellers to conduct proper due diligence and research before entering any transaction. Be meticulous with this verification process, and you will know if your potential supplier can be trusted.

Hope you find this information useful.

Struggles faced by Exporters in International Trade:

International Trading has many aspects to consider as an exporter. Knowledge like awareness of local norms in your country and the norms of exporting countries is very essential. Here are a few problems faced by the people:

1. Logistics and Geography:
One of the major challenges faced by exporters is the distance. Longer the distance complex the transportations get. For instance, if the goods need to travel to a number of countries to reach the final destination, exporters are required to have knowledge of the norms of those countries as well. This will help to avoid problems and shipping delays. It is better to invest in insurances to protect the products. Again, do check if the insurance company is covering all the countries from which the goods will pass and destination country as well. These factors will reflect in the cost incurred.

2. Mode of payment:
Every country has a different fiscal system, its better be aware and to have a proper understanding of international forms for payment to avoid a certain unwanted situation, take the help of an accountant or someone with knowledge of international trade and its payment methods. Keep in mind that the exchange rates fluctuate on a daily basis while making payment. It is advisable to do business with a trusted importer. Use government link agency to find trusted and genuine importers and exporters.

3. Legal Norms:
Legal norms are one of the most important aspects of international trading. It also implies the safety system of a particular country that considered to trade with. Be well informed regarding government laws for goods safety. To avoid trouble like obtaining certain licenses and permits overseas hire a good lawyer specialized in international trading can help you overcome such situations. So countries have a complex bureaucratic system that requires a variety of document certificates.

4. Language:
Language barriers can be a real issue when trading internationally. If the importer doesn’t speak the same language things might be lost in the translation. Hiring a translator will save a lot of struggle when it comes to communication problems. And it is an investment worth making because no one needs misunderstandings when there’s a lot of money involved.

5. Finding the right importer:
Finding the right and trusted importer is one of the biggest challenges. Do a background check of the importer to avoid possible local scams. Here, we do a basic verification check before making the lead live. You can also take the help of the third-party verification company who’ll check for the credibility o the importer.

5. Custom and culture:
While exporting always consider the culture and tradition of the country. For example in some countries certain types of clothing are not allowed, certain products are against their cultural belief, so do your research on the traditions.

Struggles faced by Importers in International Trade:

1.Sourcing International Exporter:
While sourcing international exporter, make sure you do a thorough background check to avoid scams. Take the help of an international trade manager for secure trading does initial verification of the suppliers.

2. Pricing:
There are challenges like the negotiation of pricing with the oversee traders. Due to many external reasons like the language barrier, cultural difference, etc, it is advisable to be equipped with aid to tackle such situations.

3. Quality control:
It is not possible to be there to oversee the production of the good, quality may differ from the expectations. Either, deal with a trusted exporter or hire an agency to manage the pre-production process – factory inspection, prototype evaluations – to ensure that your product meets your expectations.

4. Logistics:
Be aware of adversities that may arise while transporting the goods, rather have insurance done. Tie up with agencies to help to overcome these logistic troubles.

5. Custom Duties:
The custom duties vary from product to product from country to country and are subject to change as per countries’ financial decisions. So do your research be futuristic and avoid such twists. These were a few major problems faced by exporters and importers, but this is a small list. Problems can be many but just because of the challenges does hesitate to go for international trading. Always remember “Obstacles don’t have to stop you. If you run into a wall, don’t turn around and give up. Figure out how to climb it, go through it, or work around it.”

Market research can be time-consuming but in the long term, it can reduce exporting risks and help you to avoid costly mistakes. If you don’t research the culture, regulations, customer habits and payment methods that are typical to the market you’re selling to, among other things, you will struggle to sell your product or service there. This what market research is and why it’s important to do it. Information can be sought from many different places and the cost of information varies depending on the sources. You might like to try:

• National organizations providing support to exporters like Malaysia have Malaysia External Trade Development Corporation (MATRADE), Federation of Indian Export Organizations (FIEO) and Australian Trade and Investment Commission (AUSTRADE). Every country have government agency support the exporter or importer for validation process before execute the contract.
• Specialized industry organizations or associations.
• International company information providers such as Dun and Bradstreet. However, before purchasing such information understanding the collection and updating process of the information will determine the value of the data and the usability for your sales and marketing
• Attending seminars, workshops, and international trade shows.
• Hiring an international trade and marketing consultant.
• Other private sources such as banks, consultancy firms, and specialized press.

Unless you know what you’re doing it’s important not to go it alone, however, and conduct research either jointly with an agent or distributor, or appoint an external agency.

The profit of the import/export business is in the quantity of the goods traded. The higher the cost of the merchandise, the higher the profit from your percentage. Here are a few tips to become successful in an import and export business: Procurement: It gives you power over negotiation while closing the end deal. So know your product and the season well for the right time to procure.

• Explore routes to market entry: Develop your intercultural awareness and locate your proposition appropriately to your target audience. Get yourself involved with the international business network to find helpful business connections at home to improve your export sales without the loss.
  
  
• Manage finances, payment & risks: Set up the letter of credit to ensure that you get paid for your exports safely. Get help about learning financial transactions and research trade taxation. This can help you adjust your product pricing for the market. It needs a lot of preparation, consideration, research, expertise, and planning.
  
  
• Don’t kill the golden egg-laying goose at one go. Develop a client so he buys continuously at regular intervals. The same goes for your vendor if you are his good client he will offer better deals every time you purchase.
  
  
• Good business = Large profits. Faster execution always counts in Exports or Imports considering the volatility on USD, local market prices, etc. A longer shipment might account for a loss-making project.