Every year, overseas buyers lose deposits to the same three stories: the "factory" that's a trading desk, the sample that's perfect and the bulk order that isn't, and the supplier who disappears after the 30% deposit. None of these require luck to avoid — they require a verification routine. Here's ours.

Step 1: Check the business license (5 minutes)

Ask for the supplier's 营业执照 (business license) and check: registered company name, registered capital, date of establishment, and business scope. A company founded three months ago quoting 20% below market is a flag, not a bargain. Cross-check the name against what's printed on their proforma invoice — mismatches are common with middlemen posing as factories.

Step 2: Prove it's a real factory

  • Video call from the production floor — not the showroom. Ask to see your product category's production line running.
  • Independent factory audit — a half-day on-site audit checks machinery, workforce size, QC processes and export history. This is the single highest-ROI step for orders above $10,000.
  • Export track record — ask which markets they already serve and request a reference or a redacted bill of lading.

Step 3: Samples with a paper trail

Confirm samples in writing: materials, dimensions, colors, packaging and the sealed sample both sides sign off on. Bulk production is judged against the sealed sample — not against a WeChat photo. Budget 7–15 days for proper sampling; anyone promising complex custom samples in 48 hours is cutting corners.

Step 4: Pre-shipment inspection, every time

For any order that matters, inspect against your spec before the balance payment: quantity count, workmanship (AQL sampling), function test, packaging and labeling. Insist on a photo/video report. Our standard: no report, no balance payment — this one rule prevents most disputes.

Step 5: Payment terms that protect you

  • First order with a new supplier: 30% deposit + 70% against inspection report / B/L copy. Never 100% upfront.
  • Be cautious with "100% TT in advance for a better price" on a first order — the discount is never worth the risk.
  • For larger orders, consider trade assurance or letter of credit once the relationship justifies the paperwork.

Red flags checklist

🚩 Prices far below every other quote · 🚩 Refuses video calls from the factory · 🚩 No business license or mismatched company names · 🚩 Pressure to pay the full amount immediately · 🚩 Only communicates on personal chat apps with no company email or website.