Time and time again potential clients ask what the benefit of getting a factory audit or verification is. We are based in Shenzhen, China – while there are many reputable and genuine manufacturers and suppliers, their are sadly still many which take advantage of foreign businesses.
We hear about horror stories over and over again from individuals and companies which import from China for their retail store, Shopify, eBay or Amazon FBA business who have been scammed or ripped off. At the very least, before doing business with any company in China you should ALWAYS do some basic checks to ensure the company is legitimate – even this does not guarantee there will not be problems BUT is crucial. You can do some things yourself but we recommend you pay a sourcing agency such as Prestige Sourcing Group to do this for you.
Think about it like this, a few hundred dollars (dependent on your requirements) to get an inspection and thus performing due diligence could save you potentially tens of thousands of dollars. In your own country you would do your own verification of someone before doing business yet why would you send money off-shore with little to no recourse when something could go wrong without paying someone physically located in that country to work on your behalf?
A high percentage of information on directory websites such as Alibaba can be inaccurate or even false. In fact, a ‘gold’ verification, star rating or similiar just means that a specific yearly fee was paid and does not guarantee authenticity. Simple google searches will bring up numerous horror stories about such verified and ‘gold’ suppliers. We personally know companies on such platforms which represent themselves as something online and in reality are very different. One company listed an address and phone number, in order to get the special verification on a website the only thing that happened is they received a phone call meaning any online claims they had could be completely fabricated.
The MAJORITY of companies on the online directories are trading companies and lie or present themselves as manufacturers. This may not be a bad thing, but could mean less quality control, increased prices and you need to consider if they are lying about being a factory or not then what else may they lie about in the future?
Depending on your requirements their may be different needs for an inspection or verification, it could be the first time you are doing business with a company OR a company you already are working with. Perhaps you need to check they are following the processes you specified.
Please contact us today with any sourcing requirements you may have.