Scams By Alibaba Suppliers // 12+ Scams When Sourcing Amazon FBA Products From China, Vietnam, and Other Countries
Navigating Alibaba's bustling digital marketplace is akin to exploring a vast ocean filled with treasure and treacherous waters. As a leading global trading platform, Alibaba connects millions of buyers and suppliers, offering many opportunities for businesses worldwide. However, amidst these opportunities lurk the shadows of deception and supplier scams. In this post, we'll shed light on the darker side of Alibaba, examining the scams unscrupulous suppliers may use to deceive unsuspecting buyers.
From counterfeit products and quality misrepresentations to phantom suppliers and fraudulent transactions, the range of scams on Alibaba is as diverse as the marketplace. This reality poses significant challenges and risks for businesses seeking reliable partnerships and quality products. We aim to equip you with the knowledge and strategies to identify and avoid these deceptive practices, ensuring your Alibaba experience is both profitable and secure.
Whether you're a seasoned buyer familiar with the platform or a newcomer taking your first steps in global sourcing, understanding and navigating the potential pitfalls is crucial. Join us as we explore real-world examples, key indicators to watch for, and expert advice on conducting safe and successful transactions on Alibaba. Your journey into international trade should be filled with rewarding discoveries, not costly mistakes. Let's embark on this essential guide to safeguarding your business against supplier scams on Alibaba.
The Most Common Alibaba Scams
If you are looking for products on Alibaba or one of its many alternatives, there is a high likelihood that you will come across someone trying to take advantage of you. They love to target first-time buyers who are unaware of their options. We wrote this guide to help you identify the most common ones. We also have a more in-depth guide on how to spot scams and verify suppliers.
1) Changing the payment recipient at the last minute
This is one of the most common and frustrating scams that Cosmo and most FBA sellers encounter, and it’s hard to detect until the last minute. Since the person you’re talking to lies about who they are, they often pass a basic test when searching for the factory’s authenticity. It’s not until the very end that you’re ready to pay that you find out. The best way to avoid this is to obtain payment details early and not compromise by changing them later.
2) Only accepting payment through Western Union or T/T
Under no circumstances should you make a wire transfer to a supplier. Western Union leaves almost no paper trail, making it the most common method for scammers to accept payments. PayPal and most other payment services diligently look out for fraud. There is a good chance they used these services in the past but are now banned for life. These services also heavily vet suppliers. Please see our guide on paying a Chinese supplier: “What is the best way to pay a Chinese Supplier?”
3) Counterfeit products
If you are an FBA seller, you should never buy counterfeit brand-name products and never work with a factory that sells counterfeit products. If they are willing to ignore copyrights, what’s stopping them from ripping you off? Further, Amazon is very aggressive about clamping down on counterfeit goods, and you will be banned, potentially for life. Counterfeit goods are widespread in the sourcing and selling process so that you may be tempted, but refrain from buying them. Cosmo Sourcing refuses to work with counterfeit goods and ensures that you have complete design rights before collaborating with you.
4) Poor quality products and products that are less than your standards
Unfortunately, Asian culture (notably China and Vietnam) tends to be ‘Yes men’ in that they will almost always say yes when you ask them about customizations. As a result, overpromising and under-delivering are very common. If you want to ensure that your product is legitimate and meets your standards, it may be in your best interest to hire a sourcing company to assist you.
5) Chabuduo, the art of Corner Cutting
‘Chabuduo’ is a Chinese word that roughly translates as “close enough.” The concept is all too prevalent in Chinese manufacturing. When sourcing products, you must be highly vigilant to ensure that the product isn’t made cheaper than expected and cut corners. Commonly, suppliers only do what is necessary, not one bit more, to make your product. There are many ways this concept manifests itself in an end product. For instance, you may get a sample made of one material and the final product made of another, or have internal components that are not what they should be.
6) Products not matching the samples
Sometimes, the final product does not match the sample. This might occur for a few reasons: sometimes a different process was used (such as hand stitching for the sample and mass machine stitching for the final product), or, worse, simply buying the sample from the store. The best way to avoid this is to hire an independent third-party inspection service to inspect your goods before they are shipped. This is one of the services that we offer.
7) Payment info that does not match the factory
If they are a legitimate factory or supplier, they will always have a legitimate bank account. They will almost certainly use four central banks in China: the Industrial and Commercial Bank of China (aka ICBC), the China Construction Bank, the Agricultural Bank of China, and the Bank of China. The account name should match the business name. There are cases where they will have a Hong Kong office and a manufacturing facility on the mainland, and they may require you to pay through an HK company to ensure diligence and double-check everything.
8) Having a payment go to a personal Account
This builds on the previous post. However, if they ask you to pay an account directly connected to a personal account, then it’s a form of fraud. Ensure you are paying into an account directly linked to a business. At no point should you ever make a payment to a personal account when buying products from China or Vietnam.
9) Selling products that do not exist or that they do not have access to
Many fake suppliers will create an entire storefront of the products that you are looking for. The catch? The supplier does not have the product and is just trying to get your money. The best way to detect these individuals is to request additional verification through photos or by ordering samples, which we cover in the next section.
10) Refusing to send Samples
This scam is annoyingly familiar. Before placing a full order, always request samples to be shipped. Any company capable of making your product will be able and willing to send you a sample. If they insist they cannot send a sample and must place an entire order, you should cease contact with them and move on to another supplier.
11) Asking for additional payments for customs clearance
This isn’t a deal-breaker, but a way for a supplier to make a quick buck off you. Including the customs clearance cost in your price would be best. When negotiating your product’s price, clarify the shipping terms and determine who is responsible for shipping costs (the seller or you, the buyer). Shipping is complex, so we've written an in-depth guide.
12) Unverified profile on Alibaba
Alibaba has a supplier verification system that ensures suppliers have valid business licenses, bank accounts, and a dedicated point of contact. In truth, it’s pretty easy to get verified on Alibaba. If they are not verified, it is a huge red flag; they cannot even complete a basic check from Alibaba. When searching for factories, ensure that you select Gold Suppliers and Those with Trade Assurance. This won’t protect you from fraud, but it will help a little.
How to Find and Verify Legitimate Suppliers
Knowing the scams is only half the battle. You also need a system for vetting suppliers, so you work only with legitimate operations.
Use Multiple Platforms
Do not rely on Alibaba alone. Cross-reference suppliers on Global Sources, which does a much better job of vetting companies and making their information transparent. You can also check 1688.com, Alibaba's Chinese-language sister site for domestic buyers. Since Chinese companies have little reason to mislead other Chinese buyers, 1688 listings tend to be more honest about what a company actually manufactures.
Look for a Narrow Product Line
A real factory can only produce a limited range of related products. If you are talking to someone who offers hundreds of unrelated items, you are almost certainly dealing with a trading company or reseller, not a manufacturer.
Request Documentation
Ask suppliers for their business registration certificates, ISO certifications, and any other relevant documents. Verify that the dates are current and that the business name on the certificates matches what the supplier has told you. In China, you can look up companies on the National Enterprise Credit Information Publicity System (gsxt.gov.cn), which the State Administration maintains for Market Regulation. The site is in Chinese, so you will need the company's Chinese name to search for it.
Ask Detailed Technical Questions
If you are buying aluminum products, ask which alloys they are made of. If it is textiles, ask about the specific fabrics and dye processes they use. A real manufacturer will answer these questions confidently and in detail. A trading company will give you vague or generic responses.
Get Photos and Factory Tours
A good supplier will readily provide detailed photos of both the product and their production facility. Ask for pictures of specific equipment or production stages. And while not everyone can fly overseas for a factory visit, simply telling a supplier you would like to schedule one is a useful test. If they make excuses or seem uncomfortable with the idea, that is a warning sign.
Verify Before You Pay
Before making any payment, double-check that the bank account name matches the business name. Confirm that phone numbers and addresses match what you already have on file. If anything is inconsistent, stop and investigate before sending money.
Talk to Multiple Suppliers
Before and during the negotiation phase, you should communicate with at least half a dozen suppliers for each product. Ask each one questions like: Do you understand FBA packaging requirements? Have you exported to the USA before, and how often? What payment terms do you offer new customers? Can you provide references from existing clients?
The more conversations you have, the better your sense of what is normal and what should raise red flags.
Understanding Cultural Differences
Two cultural traits are worth keeping in mind when you are dealing with Chinese and Vietnamese suppliers.
First, as I mentioned earlier, there is a strong "yes" culture. Suppliers are often hesitant to give a flat "no" to save face. "Yes" might mean "yes, we can do that." But it might also mean "we will try" or even "we do not want to disappoint you, so we will agree now and figure it out later." When you get a "yes" or "we'll try," press for specifics. Ask follow-up questions until you get firm, detailed answers.
Second, vague responses are common and do not always indicate dishonesty. Sometimes it is a language barrier. If you suspect a supplier does not fully understand your question, rephrase it. Try simpler language or break complex questions into smaller parts. Be patient but persistent.
One more thing: do not judge a factory by its marketing. Most legitimate manufacturers are not great at English or graphic design. A poorly formatted email or a basic website does not mean the supplier is untrustworthy. Focus on the substance of their responses, the quality of their samples, and their willingness to be transparent.
Cosmo Sourcing // Navigate Sourcing with Confidence With Cosmo
Would you like our team to identify top manufacturers, obtain quotes, and introduce you directly to exceptional suppliers?
If this all sounds overwhelming, you are not alone. Navigating overseas suppliers, verifying legitimacy, managing quality control, and avoiding scams are full-time jobs. That is exactly why we built Cosmo Sourcing.
Since 2014, we have helped over 4,000 clients source more than 10,000 products from Vietnam, China, and beyond. Our team handles everything from creating product spec sheets and vetting factories to managing production, arranging inspections, coordinating shipping, and more. We use a flat-fee pricing model, which means our incentives are aligned with yours. We do not make more money when you spend more, so we actually work to reduce your costs.
If you are sourcing products and want a team that knows how to spot the scams before they happen, reach out to us. We would love to help.
Email us at info@cosmosourcing.com or visit our Contact Us page to get started.