Ten warning signs to check before you commit to a new overseas manufacturer, from a hidden factory to full payment up front. A practical checklist for Australian importers.
Last updated: October 2026
The clearest warning signs in an overseas manufacturer are a refusal to show the factory on a video call, no business licence when you ask, a price far under every other quote, and pressure to pay the full amount before production starts. If you see two or more of these, pause before you send a deposit. These are the ten signs to check when you screen a factory in China or Vietnam for an Australian order.
A bad supplier can cost you months, and a deposit you will not get back. Many Australian importers only learn what a proper factory looks like after the first order goes wrong. Work through this list before you commit.
Free Download: Manufacturer Red Flags Checklist
15-page checklist of warning signs to check before you wire a deposit to a new overseas manufacturer.
Download the Free ChecklistOne flag is a reason to ask more questions. Two or more should stop you, especially if the factory will not show itself, will not share paperwork, and wants all the money up front.
A working factory has nothing to hide. If a supplier keeps delaying a visit or a live video walk-through, treat that as the strongest warning on this list. Plenty of "manufacturers" on sourcing sites are trading firms that have never stood on the floor they claim to run.
Next step: Ask for a live video walk-through of the production floor before you send a deposit.
A factory in China has a registered business licence, and that licence carries a registration number you can look up. Most exporters also hold a customs registration. Ask for a copy early. A supplier who stalls, or who sends a scan you cannot read, is telling you to slow down.
Next step: Get the licence copy and check that the name and registration number match the company you are dealing with.
If one quote is well under the others for the same product and the same spec, ask why before you get excited. A gap that large often means thinner materials, skipped checks, or a plan to swap parts after your deposit clears. Do not treat a single percentage gap as a rule. Compare the spec, not just the number.
Next step: Line up the quotes against the same materials, finishes, and tolerances before you pick a winner.
Full payment up front leaves you with no way to push back if the goods are wrong. A safer split is a deposit to start production, then the balance only after the finished goods match the sample you approved. A bill of lading proves the goods were shipped, not that they match your sample. Pay only the contracted legal entity, not a personal account or an unrelated company. The name on the invoice must match the bank payee. Put the split and the payee in writing before you pay.
Next step: Confirm the legal entity, bank beneficiary, and invoice name match, and write down when the balance is due.
Stock photos, pictures copied from another catalogue, and renders dressed up as product shots are common on sourcing sites. Ask for photos and video of your product, not a catalogue shot, and compare them with the sample that arrives.
Sourcing Hack: Run a reverse-image search on the product photos before you reply. If the same picture sits on other suppliers' pages, or on a brand you do not work with, you are not looking at their own shot.
Not sure this factory checks out?
Epic's Supplier Finding service checks factories in China and Vietnam in person, before you send a deposit.
See Supplier FindingA factory that runs its own line can answer plain questions: capacity, lead time, materials, and how they check goods. Long delays, fuzzy answers, or a change of subject when you ask about quality checks often mean you are talking to a middleman.
Next step: Ask for capacity, lead time, materials, and their quality check process in writing.
Ask how they check goods before they ship. A supplier with a process can describe it in a sentence or two. One who refuses an independent inspection before you pay the balance expects problems.
Next step: Write the right to an independent pre-shipment inspection into the order before you pay the balance.
Check the company name, registration number, bank beneficiary, and invoice payee against each other. The website, sourcing profile, and invoice should all point to the same legal entity. A mismatch, a home address for a large factory, a name that changes between documents, or a bank account under a different name is worth chasing before you pay.
Next step: Match company name, registration, bank beneficiary, and invoice payee before you wire anything.
A factory that has exported for years should leave a trail: platform reviews, trade history, or past buyers you can call. Be careful with an account that is only a few months old and still claims a long manufacturing history.
Next step: Ask for past buyers you can contact, and check how long the account has been active.
Biosecurity rules for Australian imports are product- and packaging-specific. Check the relevant BICON case for your goods; not every shipment from China needs an import permit. Under Australian Consumer Law, the Australian seller stays responsible for product safety and consumer guarantees even when the factory is overseas. Chemical rules, including those that cover some PFAS substances, are substance- and use-specific. There is no blanket ban on textiles or cookware. Ask which standard applies to your product, and ask for product-specific test evidence. A vague "we meet all standards" is not an answer. For the official starting points, see DAFF on importing goods and the ACCC on product safety.
Next step: Ask for the standard that applies to your product and the matching test report before you order.
One flag means ask more questions. Two or more, especially a hidden factory, missing paperwork, and full payment up front, is a strong reason to keep looking. Before you send a deposit, ask for a video walk-through, check the paperwork, match the payee details, and write down when the balance is due.
That check is what Epic Sourcing's Supplier Finding service is for. The team in China and Vietnam handles the factory visit, the paperwork check, and the reference calls before you wire a deposit.
Once a supplier clears this list, the guide on local vs overseas manufacturers walks through how to weigh a local factory against a checked one in China or Vietnam.
Watch for the signs in this guide: no factory visit or video call, no business licence, a price far under every other quote, and a demand for full payment up front. Two or more together is a strong warning.
No. Pay a deposit to start, and pay the balance only after the finished goods match the sample you approved. Do not treat a bill of lading as proof the goods are right. Pay only the contracted legal entity; the invoice name must match the bank payee, not a personal or unrelated account.
A trading company buys from factories and resells to overseas buyers. Some list themselves as manufacturers even though they do not run a production line, and they may add a margin without adding a quality check.
You can ask for the copy, and a China licence includes a registration number you can look up. The document is usually in Chinese and a fake can look convincing. A sourcing agent can check the registration against government records and see that it matches the address and bank details you were given.
No. A Verified badge on a sourcing platform is not proof the seller runs the factory, holds a clean licence, or will ship goods that match your sample. Treat it as one data point, then still ask for a video walk-through, paperwork, and matching payee details.
An agent with people on the ground can visit the factory, check paperwork against local records, and speak the language in the negotiation. That catches problems an overseas buyer often finds only after the goods ship.
Not sure this factory checks out?
Epic's Supplier Finding service checks factories in China and Vietnam in person, before you send a deposit.
See Supplier Finding
