7 Supplier Red Flags Every Amazon FBA Seller Must Avoid
Written by Shahid R. KhanReviewed by Andrew L. Adler & Jonathan M. Adler
In the competitive world of eCommerce and Amazon FBA, your choice of supplier directly impacts your business success or failure.
Working with unreliable suppliers can lead to delayed shipments, high return rates, and hidden fees that eat into your profit margins.
Finding trustworthy manufacturing partners isn’t just about getting the best price—it’s about protecting your business reputation and ensuring long-term profitability. This guide covers 7 critical supplier red flags to watch for before signing agreements or sending payments.
🚨 Red Flag #1: No Verifiable Business Credentials
Why It’s a Problem
Scammers frequently create fake supplier profiles on platforms like Alibaba and Global Sources. Without proper verification, you risk sending money to an unregistered business that could disappear overnight.
How to Spot It
✔ Ask for business registration documents and export licenses
✔ Check their website domain age and business history
✔ Look for “Gold Supplier” or “Verified Supplier” badges on Alibaba
✅ Best Practices
🔎 Search the company name on TrustPilot and scam alert websites before proceeding.
📌 Legitimate suppliers will readily share their legal documentation. If a supplier refuses, walk away.
🚨 Red Flag #2: Unclear Pricing & Hidden Fees
Why It’s a Problem
Unexpected fees can increase your costs and slash profit margins. Some suppliers lure businesses in with low prices upfront, only to add substantial hidden charges later.
How to Spot It
✔ Request a detailed price breakdown (unit cost, MOQ, shipping, packaging)
✔ Watch for vague service fees appearing during negotiation
✔ Be alert to last-minute price increases after commitment
✅ Best Practices
📄 Get written price agreements before placing orders.
🔄 Compare quotes from multiple suppliers to detect overcharges.
🚨 Red Flag #3: Poor Communication & Slow Responses
Why It’s a Problem
Poor communication leads to delays, incorrect product specs, and quality issues.
How to Spot It
✔ Supplier takes days to respond to simple questions
✔ Emails contain vague or inconsistent details
✔ Frequent rep changes with no proper handover
✅ Best Practices
📝 Test response times before committing to large orders.
💬 Use WeChat or Skype for faster communication.
🚨 Red Flag #4: No Willingness to Provide Product Samples
Why It’s a Problem
Without samples, you can’t verify product quality before committing to a bulk order.
How to Spot It
✔ Supplier refuses to send samples or charges excessive fees
✔ The sample doesn’t match product descriptions or images
✔ They rush you to place bulk orders without sampling
✅ Best Practices
📦 Always order samples before placing bulk orders—non-negotiable!
📊 Compare samples from multiple suppliers to benchmark quality standards.
🚨 Red Flag #5: No Factory Visits or Third-Party Inspections Allowed
Why It’s a Problem
Some suppliers hide poor working conditions, quality issues, or fake factory ownership.
How to Spot It
✔ Supplier avoids factory visits
✔ Claims they don’t have a physical manufacturing location
✔ Refuses third-party inspections (SGS, QIMA, or AsiaInspection)
✅ Best Practices
📹 Request factory videos or conduct live video calls for verification.
🛠 Hire third-party inspectors to verify production quality.
🚨 Red Flag #6: Overpromising Production & Shipping Speeds
Why It’s a Problem
Unrealistic timelines = missed sales & Amazon penalties.
How to Spot It
✔ Supplier claims faster production than competitors
✔ Avoids giving clear lead time guarantees
✔ Downplays industry-standard production constraints
✅ Best Practices
📝 Get written confirmation of expected lead times before ordering.
📅 Always build buffer time into inventory planning.
🚨 Red Flag #7: No Buyer Protection or Secure Payment Options
Why It’s a Problem
Scammers demand full upfront payments through methods that offer no recourse if they don’t deliver.
How to Spot It
✔ Supplier only accepts high-risk payment methods (Western Union, MoneyGram)
✔ Avoids secure platforms like Alibaba Trade Assurance or PayPal
✔ Pressures you to send large payments without protection
✅ Best Practices
🔒 Use escrow services or Trade Assurance for first-time orders.
📉 Start with small test orders before making large purchases.
📑 Structure payments: 30% deposit / 70% after inspection (standard in many industries).
✅ How to Ensure You’re Working With a Trustworthy Supplier
Finding reliable manufacturing partners requires thorough due diligence. Here’s how to protect your business:
🔎 Verify business credentials and research company history.
📄 Request transparent pricing breakdowns in writing.
💬 Test communication response times before placing orders.
📦 Always order product samples before committing to bulk.
📊 Implement quality inspection protocols (preferably through third parties).
💳 Use secure payment methods that offer buyer protection.
📉 Start with smaller orders to build trust before scaling.
📌 REMEMBER: Supplier relationships are long-term partnerships that impact every aspect of your business. Taking time to properly vet potential suppliers will save you thousands of dollars and countless headaches in the long run.
Looking for a Reliable Supplier?
✔ Follow these steps and use verified platforms like Alibaba, Global Sources, or 1688 to avoid costly scams. Protect your business and ensure a smooth supply chain for long-term success!
