How to choose a sourcing agent in China (and avoid scams)

Agent, trading company, platform: who does what

None of these models is bad in itself. Trouble starts when an intermediary presents as one and works as another: an "agent" who actually takes a margin from the factory no longer has any reason to negotiate for you.

Red flags

• Refusing to give you the factory's name and address.
• Asking for payment to a personal account, or to an account whose holder does not match the contract.
• Announcing new bank details by email. It is the most common fraud: always confirm by phone or video with someone you know.
• A price well below the market, with no explanation.
• No contract, or a quote with no scope, timeline or deliverable.
• No proof from the ground: no factory photos, no sample inspection report.
• Pressure to pay quickly: "this price is only valid until tomorrow".

Verify a Chinese factory in five steps

1. Ask for the business licence (营业执照) and check the 18-character unified social credit code on China's official public company register.
2. Compare the licence's business scope with your product: a company registered for trading is not a factory.
3. Arrange a live video tour of the production line, not just the showroom.
4. Have a sample made under production conditions rather than a "showroom" sample prepared separately.
5. For a large order, have the factory audited on site: capacity, in-house quality control, use of subcontractors.

Questions to ask before signing

• How exactly are you paid? Do you receive anything from factories?
• Who visits the factory, and how often?
• What is in your inspection report? Can you show me an example?
• What happens if the inspection finds a defect?
• Who do I pay, and when?
• Who handles freight and customs, and who will be the importer?

Securing payments

The most common pattern in China is a 30% deposit on order and a 70% balance before shipment. Make the balance conditional on a passed inspection, with photos and a report. Always pay into the account of the company named in the contract. For large amounts, a letter of credit adds protection. On Alibaba, paying through the platform (Trade Assurance) gives you recourse in a dispute.

What we commit to

These questions apply to us too. At SINVEX, the first call is free, supplier research is delivered as a study whose scope and price are set in writing before we start, the price of the goods is confirmed with you before you order, and the product is filmed and inspected before you pay the balance. Ask us every one of the questions above: it is up to us to earn your trust.