1. Suspiciously round numbers
A unit price of exactly $5.00 or $10.00 at several quantities usually means the supplier has not costed your product. Real factory quotes come out of a bill of materials and land on numbers like $4.73. A round quote is either a placeholder that will "need adjustment" after your deposit, or a trading company adding a margin to someone else's price.
2. No tooling or mould line
Any product with a custom shape, logo emboss or specific packaging needs tooling. If the quote shows a unit price and nothing else, the tooling cost arrives later as a surprise, or the supplier plans to use an existing mould that is not yours. Ask: "What tooling is required, who owns it, and what is the cost?" A serious factory answers in one line.
3. "CE available" or "FCC available"
Certification is not available; a product either has a valid test report from a named lab or it does not. "Available" often means a report exists for a different product in the catalogue, or that one can be bought. Ask for the report number, the lab, and the exact model tested. Check the lab exists and the report matches your product.
4. MOQ that drops without a price change
You ask for 5,000, they say MOQ is 5,000. You ask for 1,000, they say fine, same price. A factory's cost per unit depends on run length; a trading company's does not, because it buys from stock. Nothing wrong with trading companies, but you should know which one you are paying and price accordingly.
5. Business scope that does not include manufacturing
Every Chinese company has a business licence with a stated scope. If the scope lists trading, import and export but not production (生产), you are talking to a reseller. Ask for the licence and read the scope line, or have someone who reads Chinese do it. Factory address on the licence should match where they say the goods are made.
6. Payment terms of 100% upfront, or TT to a personal account
Standard terms in China are 30% deposit, 70% before shipment. A supplier insisting on 100% before production is either very small or planning to be hard to reach. Payment to a personal bank account, or to a company whose name does not match the licence, is a stop sign, not a red flag.
7. Lead time that never changes
"25 days" for 500 units and "25 days" for 20,000 units is not a production schedule. Real factories have capacity constraints and will tell you a bigger order takes longer, or that it conflicts with another customer's run. A constant lead time suggests the quote was written without looking at the production plan.
What a good quote looks like
- Unit price at two or three quantities, with the difference explained by materials or run length.
- Tooling listed separately with ownership stated.
- Packaging specification: carton size, units per carton, gross weight. You need this for freight anyway.
- Lead time split into sampling, production and inspection windows.
- Payment terms stated, with the company bank account matching the licence name.
- Test reports named, not promised.
Frequently asked
How do I check a Chinese business licence? +
Every licence carries an 18-character Unified Social Credit Code. It can be looked up on the National Enterprise Credit Information Publicity System, which shows the registered name, address, legal representative, registered capital and business scope.
Is a trading company always worse than a factory? +
No. For small orders across many product types, a good trading company adds real value. The problem is paying factory-level trust for trading-company-level control. Know which you have.
Should I audit a factory before the first order? +
For orders above $10,000 or anything with safety certification, yes. An on-site audit costs a few hundred dollars and takes about three days; a bad first order costs far more.
Want these numbers for your product?
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Figures are indicative floor rates and typical fee ranges on our lanes as of Oct 11, 2026. Duty rates depend on your product's tariff code and declared value. This is general information, not customs or legal advice.