Importers rely on third party quality inspection agents to accurately report defects on every order.
Receiving a batch with a high defect rate can put you out of business. Especially if you’re an Amazon seller, as you must maintain a very low return rate.
Send a shipment to a fulfillment center with a 10% defect rate and it’s game over.
In other words, your business stand and falls based on the accurate reporting of quality issues and defects, from your QC partner.
Now, what if QC partner accepts payments from your supplier – in order to not report quality issues that can potentially shut you down?
That’s a nightmare scenario for everyone importing from China.
But there are things you can do to save your business, before it’s too late.
Renaud, why is bribes a problem in the QC industry?
Many buyers are quite afraid of this, because the inspector does not report all of his findings. As a consequence, a batch of products that presents a serious and widespread quality problem is accepted.
It means the buyer pays entirely for an order, and (in the worst case) might be unable to use or sell the products. A lot of money is lost, and credibility is lost on the market. Materials have been processed and shipped across the ocean but have to be thrown away. It is a huge waste!
To make matters worse, as the buyer, you likely have no leverage over the supplier. Typically, the order has been paid in full at that point. Not many buyers have a strong enough contract and accompanying documentation that allows them to sue the supplier for the loss.
More than 95% of Chinese suppliers actually use the fact that you did a quality inspection before shipment to their defense.
They will say ‘oh, but even your inspector hasn’t found about this issue, so how were we supposed to find it?’. That’s frustrating, to say the least. Continue Reading →