How to verify an Alibaba supplier before you pay.

Verify a supplier

Last updated 25 October 2026. Figures are approximate and change with the market, so check current prices before you decide.

Most bad Alibaba orders start with a good-looking listing, a friendly salesperson and a price that is a little too low. The checks below take a few hours and cost far less than one lost deposit.

What the Verified and Gold Supplier badges mean

Alibaba shows several badges next to supplier names, and the labels have changed over the years, so read the current wording on the supplier's profile.

• Verified Supplier: Alibaba's own buying guide for electronics describes it as a supplier checked by independent third-party auditors for legal registration, factory ownership, production capacity and quality systems, with an on-site inspection. The same guide says the status does not guarantee final product quality, that auditors are not standardised, and that the "Last Audited" date matters.
• Gold Supplier: an older analysis by a due-diligence firm describes it as a paid membership tier with an on-site check that confirms a site exists at the stated address. It says nothing about how the company treats customers. That article is from 2014, so treat the details as background.
• Trade Assurance is a payment protection, covered below. It is not a verdict on the supplier.

A badge tells you someone looked at the company at some point. It does not tell you the factory will make your product to specification and on time.

Check the business licence

Every legitimate company in mainland China has a registered legal name and an 18-character Unified Social Credit Code. Ask the supplier for a copy of its business licence and for the code.

Then check it yourself. China's official public registry, the National Enterprise Credit Information Publicity System at gsxt.gov.cn, lets you search by the code or the exact Chinese company name. Commercial guides to the system, such as this one, note that the portal is in Chinese and that a browser translation tool helps. The record normally shows the legal name, status, legal representative, registered address and business scope.

Compare these points:

• The name and code on the licence match the registry record.
• The status is active, not cancelled or revoked.
• The business scope covers what the supplier says it makes or sells.
• The company name on the proforma invoice and the bank account is the same legal entity.

A mismatch at any of these points is a reason to stop and ask questions. The last one matters most, because a payment to a personal account or an unrelated company is how deposits disappear.

Trading company or factory

Many good suppliers are trading companies that handle sourcing, English and shipping. The problem is being told you deal with a factory when you do not.

Ways to tell:

• Business scope: a manufacturer's licence usually lists production. A trader lists sales or import and export.
• Product range: a single company offering unrelated products across many categories is usually a trader.
• Address: a factory sits in an industrial zone. A listing with only an office address is a hint, not proof.
• Questions: ask who makes the product, which machines make it and what the minimum run is. A factory can answer in detail. A trader will often pass the question along.

If you cannot tell, ask directly: "Do you own the production facility that will make this order?" Then see the floor.

Video calls and samples

A live video call shows what a photo cannot. Ask the supplier to walk you through the production line, show the machine or process that makes your product, and show your product being made or finished. Ask for something specific on the spot, such as a handwritten note with today's date next to a product on the line. Pre-recorded tours are easy to reuse.

Then order a sample. Test it against your specification, not against the listing photos. Check material, dimensions, weight, finish, packaging and labelling. A good sample proves the factory can make the product once. It does not prove the full batch will match, which is where inspection comes in.

Third-party audits and inspections

A factory audit looks at the company: ownership, capacity, equipment and management. A product inspection looks at your goods: quantity, workmanship, measurements and packaging, usually before they ship and before you pay the balance.

Inspection companies in China charge by inspector day. Our own pricing page notes that an inspector day usually costs $200 to $350. We cover this on the quality inspection page. If the supplier refuses a third-party inspection of your own goods, that tells you something.

Trade Assurance and payment terms

Trade Assurance is Alibaba's order protection. According to Alibaba's page, payment is held until you confirm receipt, you can claim a refund if the order is not shipped, goes missing or arrives faulty or damaged, and Alibaba mediates disputes. The conditions matter: it applies to orders agreed on Alibaba.com and paid through Alibaba.com, either by online checkout or wire transfer. If you move the conversation to email and pay by bank transfer outside the platform, the protection does not apply.

Payment terms to consider:

• A common split for a first order is a deposit at order and the balance before shipping. We usually see 30% and 70%.
• Pay the balance only after you have seen the inspection report.
• Pay the company on the licence, to a business account in its name.
• Avoid paying everything upfront on a first order, whatever the discount.

Red flags

• The supplier will not show a licence or the code.
• The licence name differs from the name on the invoice or bank account.
• The bank account is personal, or in a third company's name.
• The price is far below every other quote for the same specification.
• The supplier pushes you to leave the platform, or says Trade Assurance "is not needed".
• No live video, or the same pre-recorded footage again.
• The supplier cannot name its production machines or the materials it uses.
• Pressure to pay today.

A checklist you can reuse

FAQ

Is Alibaba safe to buy from?

Plenty of buyers order from Alibaba without trouble, and Trade Assurance adds payment protection. It is a marketplace with many kinds of sellers, so check each supplier before you pay.

How do I check if a Chinese company is real?

Search for it in the National Enterprise Credit Information Publicity System using its Unified Social Credit Code or exact Chinese legal name. Confirm that the status is active and that the registered name matches the one on the invoice and bank account. The portal is in Chinese, so use a translation tool.

How do I know if a supplier is a factory or a trading company?

Look at the business scope on the licence, the range of products and the address, then ask who makes the product and see the production floor on live video. A supplier that cannot answer detailed questions about machines and materials is probably not making the product itself.

Does Trade Assurance protect me completely?

No. It applies to eligible orders paid through Alibaba.com and covers situations such as non-shipment, loss or faulty goods. It does not replace checking the supplier.

Do I need a third-party inspection for a small order?

Not always, but it is worth it when a bad batch would hurt. The inspector is paid by you, not the supplier, which is the point. For small first orders, a video inspection costs less.

How OnePDA can help

You can do all of this yourself. It takes time, and some of it is in Chinese. Our China sourcing agent service covers these steps, with no commission from the factory.

• Supplier search report, €149. Three or more vetted suppliers, each with the factory's own quote, minimum order, lead time and our notes on risk. We check each candidate's registered business details. The fee is credited against your first order and refunded if fewer than three suppliers qualify.
• Samples, €49 per supplier. We order and check them with photos and video. Samples and shipping are at cost.
• Order management, 6% of the order (minimum €150). 4% on the part above €30,000. It covers negotiation, the purchase order, production follow-up and shipping coordination.
• Inspection. A third-party inspector at the price they charge us plus €25, or our own video inspection for €90.
• Compliance check, €59. A checklist of the CE, REACH and GPSR flags for your product. It is not a certification.
• Freight. At cost, with no markup.

Prices exclude VAT where it applies. You pay the factory directly, and we do not promise factory prices, quality or lead times. If you are still choosing between options, read how to find suppliers in China and how to choose a sourcing agent.