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You'll see chemical companies on the Internet. The organization looks good. This is a business opportunity that could really take off. But there are a lot of scams, fakes, and simply bad Chinese chemical companies that need to be vigilant. So how do you make sure you're doing business with a legitimate supplier you can trust?

Don't worry; you're not alone. In the survey conducted by global resources, most of the enterprises interviewed said that verifying Chinese suppliers was the biggest problem they faced when importing products from China.

When you verify a potential chemical company, you basically look at these two aspects:

Does the supplier have the ability to produce the product you want to buy?

Is the company legal and reputable rather than a fraud or bankrupt enterprise?

This article provides a simple and effective strategy to answer both questions – let's get started.

1. Use search engine and Chinese supplier list

When checking the wholesale websites in China, carefully check all their policies (return, damage, backorder) and make sure their contact information and physical address are posted on the website.

Open Google or Bing and search for “[company name] + scam”, “[company name] + dishonesty,” and some variants. Other dealers and retailers who have had unpleasant experiences with Chinese wholesale suppliers often try to leave traces on the Internet.

When you search for the company name of the supplier, you will find the profiles they created on various B2B directories, including Alibaba, global resources, Hong Kong Trade Development Council, etc.

These are good places to start browsing comments, getting references and asking questions, but be careful of members who are just trying to sell themselves. For example, pay attention to how long the supplier has been in operation (it's good to do business with suppliers who have been in the market for at least 2-3 years).

In addition, many B2B markets often offer authentication services similar to those provided by Alibaba, so it makes your life much easier when you decide whether to trust a supplier or not. Similarly, global sources checks important supplier data such as start date, number of employees per department, factory ownership, sales, brand name, etc.

In addition, a sign that you are dealing well with suppliers such as Google in recent trade shows, such as whether you are dealing well with suppliers in China, etc. Renting booths and participating in trade shows can be seen as investment from new customers. Being on the show many times also means that suppliers are serious about cultivating relationships with customers.

2. Make a phone call

In order to avoid being tracked by law enforcement agencies, most cheaters do not provide real registration information on the Internet. For example, they will provide false company addresses, telephone and fax numbers, or persuade buyers to contact them only through their mobile phones.

Call the landline of the Chinese supplier and ask for the company registration number and business license number. If the supplier has only one mobile phone number and no landline, you should remind yourself. In China, people can buy hundreds of mobile phone numbers without any restrictions. That's why scammers almost always use mobile phone numbers instead of landlines.

The standard China fixed line telephone is as follows: 86 10 3333 3333. “86” is China's country code, “10” (or another two digit) is the region code, and 8-digit is the phone number. You can do a basic check on the location of the phone number with the area code.

3. Check the business license

Chinese suppliers must register with Chinese government authorities and obtain a unique company registration number. If your supplier can't give you a unique company registration number, it's too dangerous to continue to deal with them. Check the registration number, visit the local government administration website or contact the local industry and Commerce Bureau.

4. Requirements reference

In order to verify the financial credit value of suppliers, their banks are required to issue a letter of recommendation. In order to check the supplier's record of producing high quality products, ask their previous customers for reference. Do not hesitate to contact them.

Similarly, if you know other brands in your industry, why not contact them and ask for advice from any Chinese suppliers they have used.

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