Do you or someone you know have an idea to make and sell your own products, but don’t have the money or knowledge to hire an overseas manufacturing company? If so, you’re not alone. Many people are victims of China manufacturing scams. It may sound too good to be true, but it’s important to understand that these China manufacturing scams exist, how they operate, and what you can do to avoid them before it’s too late.
Not when they don’t have a website
When looking for a manufacturer in China, be sure to do your research. A simple Google search can reveal a lot about a company. If they don’t have a website, that’s a huge red flag. Legitimate businesses will have an online presence. However, many scammers know this and will put up websites just to get a client hooked on their fake site. They may even send you emails with subject lines like New Order? or Missing You! These emails are often nothing more than scams themselves.
To avoid being tricked by a scammer, be vigilant when searching for potential manufacturers. Contact them directly via email before signing any contracts, always talk over phone or WeChat, the IM app commonly used there, and make sure the person is who they say they are. Keep communicating with someone in charge of the business and ask questions until you are satisfied. Be mindful of differences between countries as well. For example, some cultures care less about privacy so it might be normal for people to use first names while others use surnames only.
Watch out for ‘too good to be true’ costs
Many scammers will try to take advantage of inexperienced buyers by offering ridiculously low prices. If a price seems too good to be true, it probably is. You should always question whether or not you’re getting a legitimate offer or if someone is trying to scam you out of your money. It’s very important that you do thorough research on any companies that are asking for payments before finalizing any deals.
Never pay in full upfront without doing an extensive amount of due diligence beforehand. A few other signs that you might be dealing with a manufacturing scammer are when they ask for an upfront payment without much information about their company, refuse to provide pictures and videos of their products, and/or want you to send them goods as collateral while they manufacture your product (which would make sense if they were reputable).
If something feels off about a deal with a Chinese manufacturer, trust your gut and investigate further!
Ask if they offer OEM services
When you’re looking for a manufacturer in China, be sure to ask if they offer OEM services. Original Equipment Manufacturer (OEM) services simply means that the company will produce products that are branded with your company’s name and logo. The benefit of an OEM service is that it allows you to protect your intellectual property by producing only one version of each product, much lowering the risk of compromising your IP by a manufacturer that tries to steal.
It also ensures better quality control because the company knows what type of materials you require. Finally, it gives you control over where the product is made, which can help prevent unethical labor practices like child labor or poor working conditions.
Look up reviews on social media sites
When looking for a manufacturer, be sure to check out reviews on social media sites. This will help you weed out the bad apples and find a reputable company. Also, don’t be afraid to ask for references from past clients. A good manufacturer should have no problem providing them. It’s also wise to look at ratings on online marketplaces such as Alibaba or Rakuten.
Many legitimate manufactures in China now try to expand their network by increasing presence on social media, so it’s not uncommon for them to be represented on platforms such as Instagram or LinkedIn. Look up their names on these sites and see what you can find, even on their own accounts. If they’re new to social media, this could mean that they’re either just starting out or are trying too hard to project an image of legitimacy when they really aren’t. The only way to tell is if there are negative reviews or complaints about them posted around the web. If there are enough of these (especially with photos), then you’ll know that it might be best not to do business with this person. You can even check their copy and look for red flags like poor grammar, unrealistic pricing or even lack of contact information.
Research their location
If they’re located in an industrial area, that’s a good sign. If they’re located in a residential area, that’s a red flag. Ask for samples or a physical address so you can verify their location with Google Maps or another service. The city it is located in also matters. Be wary of any company that’s outside of major manufacturing hubs like the Greater Bay Area or Yangtze River Delta. These areas are much more advanced in manufacturing technology with more skilled labors.
Some scammers will claim they are based in these areas but actually have operations somewhere else where labor costs are cheaper. Always be suspicious if they refuse to provide samples or information about their location and do not respond when you ask them follow-up questions.
By doing your research, getting multiple quotes, and not paying upfront, you can avoid being scammed. Be sure to also use a reputable company with a wealth of experience who have the tools and knowledge to protect your business. With more information and caution, you can manufacturing in China without getting scammed. C2W is your perfect choice when it comes to that. It’s been based in China for over 17 years and variety of manufacturing capabilities. Check us out if interested!
