How to Find a Supplier in China Without Losing Money

21.10.2026·7 min read·Delivery Pro China

How to find a supplier in China: comparing 1688, Alibaba and other platforms, explaining the difference between a factory and a trading company, and outlining five checks before payment.

In brief: You can find a supplier in China through 1688, Alibaba, Taobao, Made-in-China and industry trade shows. The platforms differ not in product range but in price and target audience. Before making your first payment, verify the business license, confirm that the account details match, check the registry data, order a sample and request a video call from the warehouse.

This material is current as of 2025.

How the Platforms Differ from Each Other

A common mistake among importers is searching for a supplier where it is convenient rather than where it is cheaper and more reliable. Chinese platforms differ not in product range – which largely overlaps – but in who they sell to and at what price.

The same product on an international storefront and on the Chinese domestic market can differ in price by one and a half to two times. The difference is not in quality: a seller on an international platform has already factored in the cost of export operations and English-language support.

Practical takeaway: it makes sense to search on 1688 and conduct negotiations through someone who speaks Chinese. Finding a listing on Alibaba and then locating the same factory on 1688 is standard practice, and the price difference covers the cost of intermediary services on the very first order.

Factory or Trading Company: What Works Better in Practice

A seller on a platform can be one of three types, and they all look the same from a product listing.

A factory manufactures in-house. The price is lower, the minimum order quantity is higher, and the range is narrow: one factory makes either bags or chargers, but not both at the same time.

A trading company buys from factories and resells. It charges 5–15% more, but can combine different items into a single order, responds faster and is experienced in export operations.

A private reseller offers the same goods from stock, without documentation and without accountability. The price looks attractive until the first problem arises.

The common advice to "only work with factories" does not always apply. If you have ten items across different categories, a factory cannot consolidate them. Ten separate orders means ten minimum order quantities, ten separate deliveries to a consolidation warehouse and ten independent negotiations. In such cases, a trading company often results in a lower total landed cost.

A factory is the right choice when price at volume matters, when you need private labelling, customisation to specific requirements or manufacturer documentation for certification purposes.

How to tell them apart without a site visit: on a business license, a manufacturer will list 生产 (production) under business activities, while a trading company will list 贸易 (trade). Indirect indicators include a narrow product range, photos of a workshop with uniform equipment and a willingness to show the production line over video call.

Five Checks Before the First Payment

The order matters: each subsequent check costs more than the previous one. For most sellers, the verification process ends at the second step.

1. Business license. Request a photo or scan (营业执照). It contains the registration number, date of registration, registered capital and business activities. A company registered three months ago is not disqualifying, but it is a strong reason not to pay the full amount upfront.

2. Name match between the license and the payment details. This is the most important check, and it costs nothing. The funds must go to the account of the company whose name appears on both the license and the invoice. Any discrepancy is a reason to stop the payment.

3. Verification through the Chinese business registry. Company data is publicly available and can be checked by license number. You can see the operating period, legal proceedings, ownership changes and active status.

4. A sample. It costs money and two to three weeks, but replaces any verbal assurances. A sample checks not only product quality but also the supplier itself: how they respond to questions, how they package goods and whether they meet the stated lead time.

5. A video call from the warehouse or production floor. Asking a supplier to walk through their facility on camera is standard practice in China. A refusal without explanation at this stage says more than any certificates provided.

How to Avoid Losing Money on the First Payment

Most losses on first shipments occur not because of poor product quality but because payment is sent to the wrong recipient. A few rules that reduce this risk:

• Do not transfer money to an individual; only to a legal entity's account.
• Verify that the company name on the invoice, on the license and in the banking details all match.
• Do not agree to 100% prepayment with an unknown supplier without a sample and without a registry check.
• If an intermediary asks you to transfer funds to their personal account "for convenience" – that is a red flag.

Supplier verification is not a one-time procedure before the first order. The market changes: factories change owners, trading companies come and go. Those who check before payment deal less frequently with the consequences after.

Frequently Asked Questions

Is it possible to work directly with a 1688 supplier without an intermediary? Practically speaking, no: the platform is oriented toward the domestic Chinese market, most sellers do not work with foreign buyers and do not accept international payments. Purchasing from 1688 requires an intermediary or an agent with a Chinese legal entity.

Why is a trading company better than a factory when an order includes multiple items? A trading company consolidates products from different categories into a single order. With ten items from different manufacturers, this reduces the number of minimum order quantities, separate deliveries to a consolidation warehouse and negotiation processes – the total landed cost of the shipment is often lower as a result.

What exactly is visible when checking a supplier through the Chinese business registry? Using the business license number, the following information is publicly available: registration date, current company status, business activities, founder details, legal proceedings and ownership history.

Is a sample necessary if the supplier has been on the platform for several years with a strong rating? A sample checks not only the seller's rating but also the specific batch of goods, the packaging and adherence to lead times. A platform rating and the actual quality of a specific shipment can diverge, particularly when a supplier works with multiple factories.

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