How to Verify Chinese Suppliers Before You Send Money

Every week, importers wire money to suppliers who don’t exist. Some lose a few hundred dollars. Others lose $50,000 or more. The painful truth is that most of those people thought they’d done their homework.

Verifying a Chinese supplier isn’t hard. But it requires more than glancing at a badge on Alibaba. This guide walks you through what actually works.

What Alibaba Badges Actually Mean (And Don’t Mean)

Alibaba has two main trust signals: Gold Supplier and Verified Supplier. You’ll see them constantly. Here’s what they actually tell you.

Gold Supplier means the company paid a membership fee, typically a few thousand dollars per year. Alibaba confirms the business is legally registered, but that’s it. There’s no check on whether the products are real, the quality is acceptable, or the company will ship what you ordered. A Gold Supplier badge proves a business exists. Nothing more.

Verified Supplier is a step up. A third party physically visits the factory or office and checks production capabilities, quality systems, and company records. This is more meaningful. But “more meaningful” still doesn’t mean safe. Verification happens at a point in time. Factories change. Owners change. Quality drifts.

Don’t rely on badges alone. They’re a starting filter, not a finish line. You need to do your own checks.

Third-Party Verification Services

The most reliable way to verify a supplier is to pay someone to check them independently. Three companies dominate this space:

QIMA – Online booking, transparent pricing, fast turnaround. Supplier audits run around $300-500 depending on scope.
SGS – The largest inspection company in the world. Thorough but slower to quote and schedule.
V-Trust – Well-regarded for China-specific work. Competitive pricing, often $200-400 for a basic factory audit.

A typical supplier audit ($200-400) includes verification of business registration, a physical walkthrough of facilities, an interview with management, and a written report with photos. You get an independent view of what’s actually there.

This isn’t optional for orders over $5,000. The audit fee is cheap insurance.

For more on what inspectors check once you’re ready to order, see our guide on quality control and inspections.

How to Check a Business License Yourself

China’s company registry is public. You can verify suppliers for free using SAMR (the State Administration for Market Regulation) through the National Enterprise Credit Information Publicity System at qixin.com or gsxt.gov.cn.

Search for the company’s Chinese name (ask the supplier for it). You can confirm:

Legal company name
Registration date
Registered capital
Business scope
Current status (active, suspended, or cancelled)

If a supplier refuses to give you their Chinese company name, that’s a red flag. Every legitimate business registered in China has one.

Cross-check the company name on their invoice with what’s in the registry. If they don’t match, ask why before sending any money.

Video Factory Tours and Virtual Verification

You can’t fly to Shenzhen for every potential supplier. A video call is the next best thing, and most legitimate suppliers will agree to one.

Request a live video tour of the production floor. Ask them to show you:

Active production lines with workers
The current product being made
Quality control stations
Warehouse inventory

Watch for signs it’s staged or fake. A tour that’s too polished, too empty, or suspiciously quiet can be a sign you’re looking at a sales office, not a factory.

Some importers also use services like Sourcing Allies or local agents in China to do in-person visits for $150-300. For large orders, it’s worth it.

Ask for References from Existing Buyers

A legitimate supplier will have other customers. Ask for two or three references, preferably buyers in your home market who speak your language.

Most scammers won’t provide references. Many legitimate suppliers will hesitate because they worry you’ll go direct to their customers. Push anyway. If they can’t or won’t provide a single verifiable reference, weight that heavily.

When you get references, actually contact them. Ask:

Did the products match the samples?
How did they handle quality problems?
Did they ship on time?
Would you order from them again?

Five minutes on the phone tells you more than hours on Alibaba.

Red Flags to Watch For

These aren’t guarantees of fraud, but each one should make you slow down:

Prices way below market. If competitors quote $8 and this supplier quotes $3, something’s wrong. Either the quality is different or it’s a scam.
Pressure to move fast. “This price is only good today” is a sales tactic. Legitimate suppliers don’t evaporate if you take a week to decide.
Gmail or QQ email addresses. Real factories use company domains. A supplier with no company email is a risk.
Reluctance to sign a contract or provide a proforma invoice. Every professional supplier issues a PI. If they won’t, walk away.
Asking for payment by Western Union or Crypto. This is almost always a scam. See our avoiding scams guide for full detail.
Sample quality much better than production claims suggest. This is the classic bait-and-switch setup.

The Verification Checklist

Before you send any money, confirm all of the following:

Business license verified via SAMR or gsxt.gov.cn
Company name on license matches name on invoice and Alibaba profile
Video call completed with live factory tour
Third-party audit ordered (for orders over $5,000)
At least one reference contacted and verified
Contract or proforma invoice signed with clear product specs
Payment via Trade Assurance or Letter of Credit (not T/T alone to a new supplier)

Check the payment methods guide to understand which payment options give you the most protection on a first order.

Frequently Asked Questions

How much does a supplier verification audit cost? A basic factory audit from companies like QIMA or V-Trust typically costs $200-400. This includes a physical visit, document review, and written report. More comprehensive audits covering quality systems and social compliance can run $400-700.

Does Alibaba Trade Assurance verify suppliers? No. Trade Assurance protects your payment if the goods don’t match the order description. It doesn’t verify whether the supplier is legitimate before you order. Use Trade Assurance AND do your own verification.

What is SAMR and how do I use it? SAMR is China’s State Administration for Market Regulation. Their public database at gsxt.gov.cn lets you search any Chinese company by name and see their registration details, business scope, and current status. It’s free and available in Chinese.

Can I trust a supplier’s Alibaba transaction history? Transaction history shows activity, but it can be gamed. Suppliers buy from themselves using fake accounts to inflate numbers. Don’t treat transaction volume as proof of legitimacy. Use it as one data point only.

What if a supplier won’t agree to a factory audit? Walk away. A supplier who refuses a paid third-party audit is hiding something. Legitimate factories welcome audits because they demonstrate credibility to buyers. Refusal is a major red flag.

How long does supplier verification take? Checking the business registry takes 10 minutes. Scheduling a video call takes a few days. A third-party audit from QIMA or V-Trust can be booked within a week and completed in 1-3 days. Budget 2-3 weeks for thorough verification before placing an order.