Getting scammed is the number-one fear for Aussie SMEs sourcing from China. This 2026 checklist shows exactly how to verify a Chinese supplier before you pay — licence checks, video tours, samples, red flags and safe payment terms.
Last updated: 25 June 2026
In short: To verify a Chinese supplier before you pay, confirm their business licence and registered company name, check how long they’ve been trading, use Alibaba Trade Assurance or an escrow payment, insist on a live video call and a factory walkthrough, order and approve a sample, and never pay 100% upfront to a personal bank account. If a supplier dodges any of these basic checks, walk away. A few hours of verification can save you thousands.
Getting scammed is the number-one fear for Aussie SMEs sourcing from China — and it’s a fair one. But the businesses that get burned almost always skipped the same handful of checks. Here’s the exact pre-payment verification process we use at Epic Sourcing, so you can buy with confidence instead of crossing your fingers and hoping for the best.
Because once your money leaves the country, getting it back is hard. The most common problems — fake companies, traders posing as factories, quality far below the sample, or goods that never ship — are all avoidable with proper due diligence.
Verification isn’t about distrust; it’s about confirming you’re dealing with a real, capable manufacturer who can deliver what they promise. The good factories expect these questions and answer them happily.
Every legitimate Chinese company has a business licence with a unique 18-digit Unified Social Credit Code. Ask for a copy and check the registered name, scope of business and registered capital. The company name on your invoice and contract should match this licence exactly.
On Alibaba, look at years as a Gold Supplier, transaction history and reviews. Be cautious with brand-new accounts. Cross-check the company name in a search engine and on 1688 (the domestic Chinese platform) to see whether they sell to the local market too.
Both can work, but you should know which you’re dealing with. Ask for the factory address, photos of the production line, and equipment lists. A real manufacturer can answer detailed technical questions; a trader often reroutes them.
Request a video call where they walk the floor in real time. This single step exposes most fakes — a “factory” that can’t show you a production line on camera is a red flag.
Always order a sample before a bulk order. Inspect quality, materials, finish and packaging, and keep the approved “golden sample” as your quality benchmark.
Use Alibaba Trade Assurance or an escrow service that releases funds only when you confirm the order — here’s how Alibaba Trade Assurance keeps Australian importers safe. For larger orders, a typical split is 30% deposit and 70% before shipment after inspection. Never wire 100% upfront, and never pay into a personal account.
For any meaningful order, pay for a pre-shipment inspection. An independent inspector checks the goods against your specification before the balance is paid — cheap insurance against a bad batch. Our complete guide to factory audits in China explains what a thorough inspection covers.
Some warning signs should stop you cold. Use this quick reference before you transfer a cent.
Red flagWhat it usually meansPrice far below everyone elseToo good to be true — often a scam or a quality switchRefuses a video call or factory tourMay not be a real manufacturerAsks for payment to a personal accountClassic fraud signal — no buyer protectionCompany name doesn’t match the business licencePossible front or middleman hiding the real entityPressures you to pay 100% upfront fastHigh-pressure tactics to bypass your checksVague or evasive on specs and materialsLikely a trader, not the actual producer
Say a Perth homeware brand finds a supplier offering ceramic mugs at 20% below every other quote. Before paying, they request the business licence (the 18-digit code checks out), book a video call (the floor tour looks legitimate), and order three samples shipped to Fremantle. Two samples are great; one has a glaze defect.
Once verified, they move into the shipping stage covered in our guide to importing from China to Brisbane. They raise the defect, the factory agrees to tighten QC, and they proceed with a 30/70 payment split through Trade Assurance plus a pre-shipment inspection. The inspection catches a small labelling error before the balance is paid — fixed at no cost. That’s verification doing its job.
Ask for their business licence and verify the 18-digit Unified Social Credit Code. A sourcing agent or third-party verification service can confirm the registration against official Chinese records.
Trade Assurance is a strong layer of protection because it holds funds and covers order quality and on-time shipment terms — but it works best combined with samples, a video call and a pre-shipment inspection.
No. For new suppliers, use a deposit-and-balance split (commonly 30/70) with the balance paid after a satisfactory inspection. Avoid full upfront payment, especially to personal accounts.
A factory manufactures the goods; a trading company resells from factories. Traders can add value (and speak better English), but you’ll usually get better pricing and control dealing closer to the source.
Yes — this is exactly what a good agent does. With bilingual staff on the ground, they can visit factories, confirm licences, run inspections and negotiate safe terms on your behalf as part of our China-to-Australia importing service.
Verifying a supplier from the other side of the world is far easier with people in the same time zone as the factory. Epic Sourcing has bilingual teams on the ground in China and Vietnam, offices in five countries, and 20,000+ products sourced for 300+ happy clients at around 77% average savings. We vet suppliers, run factory audits and inspections, and structure safe payment terms so you never have to gamble on a stranger.
Want us to verify a supplier before you pay? Give us a bell and book a discovery call.
