According to my experiences of several years dealing with trade disputes happening on the Alibaba platform, choosing trustworthy suppliers is very vital. Usually, buyers will take a few minutes to check the credit of suppliers, and the way they check mainly focuses on suppliers’ legality, sales volume, reviews on Alibaba, and so on.
It is not far enough to check the credit of suppliers in this way. In China, registering a company is not complex and you do not even need to finish all registered capital payments when registering at once. Thus, we can say almost all companies on Alibaba are legit. Further, the Alibaba platform will also review the company’s information of suppliers when they apply to become sellers on Alibaba, which makes it impossible for suppliers to use a fake and illegal company to register on Alibaba.
Apart from checking the legality of suppliers, it is also important to check suppliers’ registered capital, scale, compliance, and so on. Usually, to some extent, these factors can reflect if suppliers are reputable and trustworthy companies.
I usually help international buyers check the credit of Alibaba suppliers and evaluate if there will be huge risks when trading. Considering some buyers will check credit by themselves, thus, I would suggest you check from some public governmental websites. The website I always use is called “National Enterprise Credit Information Publicity System” where you can know if the scale of suppliers is big or small, if suppliers conducted some illegal or non-compliance actions if suppliers have too many legal disputes cases in courts ever, and so on.
————
Contact us:
Jack Meng, is a Chinese lawyer practicing in Shanghai.
Email: finlandlove@outlook.com
Telegram: @Jackmeng2024