Why Audit Matters
First-order disasters almost always trace back to missed vetting. A 30-minute audit process saves thousands in failed orders, quality issues, and lost time.
The 25 Questions
Company and Legitimacy (5 questions)
- How long has the company been in business? (Target: 5+ years for mature categories)
- What is the legal company name and registration number? (Verify on China's National Enterprise Credit Information Publicity System)
- Is the Alibaba / 1688 profile a factory or a trading company? (Factories are usually preferred)
- Can you share a photo or video of the production floor?
- What is the annual revenue? (Gives sense of scale)
Production Capabilities (5 questions)
- What is the MOQ for the product I need?
- What is your typical lead time for this quantity?
- Can you handle custom colors / packaging / logo? At what extra cost?
- What certifications do you have? (CE, RoHS, ISO 9001, FDA, etc.)
- What is your current production capacity utilization? (Tight capacity can delay orders)
Quality Systems (5 questions)
- What in-line QC does the factory run? (Sampling, full-unit inspection, etc.)
- Can you share a sample QC report from a recent shipment?
- Are third-party inspections welcome? (SGS, QIMA, Bureau Veritas)
- What is your defect rate history?
- How do you handle defective units in a shipment?
Commercial Terms (5 questions)
- What payment terms do you accept? (TT, LC, Alipay, escrow)
- What is the sample fee policy? (Reimbursable on first order?)
- What Incoterms do you typically quote? (EXW, FOB, CIF, DDP)
- What ports do you ship from?
- Can you provide tiered pricing at 100 / 500 / 1000 / 5000 units?
References and Trust (5 questions)
- Can you share 2-3 customer references in my region? (Verify independently)
- What is your largest past order? (Indicates scale capability)
- Do you have any ongoing partnerships with major brands?
- Are you willing to sign an NNN (Non-Disclosure, Non-Use, Non-Circumvention) agreement for custom products?
- How do you handle intellectual property disputes?
Red Flags
- Refusal to show production floor
- Different legal name than platform profile
- Prices dramatically below sector norms
- Pressure to pay outside the platform
- Refusal to provide references
- Vague answers on capacity or MOQ
- Non-Chinese bank accounts for initial payment
Green Flags
- Same address on business license and platform profile
- Clear production videos and photos (including workers, machinery)
- Willing to provide references
- Accepts third-party inspections
- Clear, documented certifications
- Responsive during Chinese business hours (GMT+8, typically 9am-6pm)
Verification Tools
Free
- China's National Enterprise Credit Information Publicity System (business registration check)
- Google + LinkedIn for references
- TikTok / YouTube for factory tours
Paid
- QIMA supplier report (~$200)
- SGS audit (~$1,500 on-site)
- Kompass / Europages business databases
When to Walk Away
- Can't verify company registration
- No physical address visible
- Pressure for 100% upfront payment
- Won't share references
- Can't explain MOQ clearly
- Pricing that seems too good to be true (it is)
How Catalayer Helps
[Sourcing Agent](/sourcing-agent) automates initial RFQ outreach with structured audit questions. [Source Finder](/source-finder) helps benchmark a supplier's price against alternatives.
Key Takeaways
- Always ask the 25 questions before placing a first order
- Verify company registration independently
- Watch for red flags (off-platform payments, vague answers)
- Get references and verify at least one
- Budget $200-1,500 for professional verification on large orders
See related [/guides/how-to-find-suppliers-on-1688](/guides/how-to-find-suppliers-on-1688), [/guides/alibaba-trade-assurance-explained](/guides/alibaba-trade-assurance-explained).