10 Questions Answered From Shanghai
From my inbox and calls, names removed.
The 7-Factor Supplier Checklist — the checks I run before a deposit moves.
Free. Plus the Monday briefing from Shanghai.
How do I know if my supplier is a real factory or just a trader?
You have to check where they actually make it. Ask who does the molding, who runs the production. Sometimes the company you are talking to i…
sourcingMy supplier wants the deposit sent to a personal bank account, is this normal?
No, you do not transfer to a personal account. If the money goes to a personal account, there is no official invoice, no fapiao. And if ther…
tariffsWhat hidden costs sit between the factory price and my door?
There are always costs in between. The factory price is never the final price. Ask exactly what is included. If you want it delivered a cert…
verificationAre Chinese certificates real, how do I check one?
Certificates you can buy. A lot of factories buy them. So the paper alone means nothing. You have to check where they got the certificate, w…
contractsHow do I make a contract that actually works in China?
It depends on what kind of contract you make and how you make it. A contract can hold in China, but only if everything is done in order, the…
negotiationWe are small, under 50k, will a good factory take us seriously?
Yes, they will take you seriously, depending on how you talk to them. Are you looking for short term or long term? And you have to talk to t…
contractsWho owns the mold I paid for, and how do I prove it?
You prove it by checking where the mold is actually made. Sometimes they give it to a third party and you are not even sure who holds it. Th…
verificationHow do I stop a factory changing materials without telling me?
You stop it by having someone on the ground checking the factory. When a factory knows nobody is watching, that is when the material quietly…
contractsThe factory went quiet after I paid the deposit, what now?
This is why you make a real agreement before you pay, not after. A proper signed contract first. And you visit, or you send someone to be on…
verificationShould I visit the factory myself or send someone?
It depends. If you are already coming to China, go and see it. But is it worth a flight only for this? Back and forth is already more than a…