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How to tell if a Factory is Cheating you

In my line of work I meet a lot of folks who have been fooled and outright swindled by both trading companies and factories here in China.   Over time you get good at knowing what signs to look out for.  Below are some key indicators that you’re in for it:

1.  The supplier insists you send money by a “Western Union” style method, not directly to an account. This is a telltale sign of a supplier who is a complete fraud.  Make sure you verify the supplier through a China supplier verification service before proceeding.

2.  The bank account name  provided by the supplier doesn’t match up to any supplier information. This can often mean that the supplier is hiding their identity, or not actually related to the manufacturer.

3.  Shortly before you are about to attend a factory for a visit, the supplier informs you that the factory location or name is not as they previously provided, but is different. There may be logical reasons for such a “last minute change” but the supplier should be able to explain them clearly.

4.  The supplier tells you that production is in-process, but continues to delay sending you a sample. This shows us that the supplier is either providing inaccurate information, or does not have control over the manufacturing process or getting samples.

5.  The phone number provided by the supplier does not ring or does not reach the correct party. ALWAYS place a phone call to the supplier before getting involved in an order to verify the provided contact information.

6.  The website of the supplier does not work or shows information conflicting with the supplier’s identity. The information found on any provided website can be very telling.  If the website does not work then there may be reason to worry.

Being vigilant to these warning signs can save your brand reputation and your money.  If you have any doubts of a supplier it is always better to verify the supplier before proceeding.

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