Is your supplier subcontracting your order? Here’s why you should care.

Subcontracting happens more often than you think.

Let me start with this: it’s normal for factories to outsource certain parts of your product. Things like packaging, accessory parts, or shipping cartons are common examples.

What you want to avoid is a supplier subcontracting the ENTIRE production of your product.

Here’s how it works: say you’re ordering speakers. You trust Supplier A to make them. But behind the scenes, Supplier A gives the entire job to Factory B. They pay Factory B, add a markup, and collect their cut.

This practice is surprisingly common, even among experienced brands that have been sourcing for years.

It’s a big problem because:

– You pay more. Supplier A takes their percentage, driving up your costs.

– Communication breaks down. You’re dealing with a middleman, not the factory making your product.

– Quality risks skyrocket. You have no visibility into Factory B’s processes, standards, or even their location.

In some cases, subcontracting might make sense—like in a niche product area where access to the best factory requires working through an intermediary. But even then, strong communication and transparency is key.

How do you protect yourself?

– Ask for factory audits. Insist on visiting the factory where your product will actually be made. If the supplier resists, that’s a red flag.

– Review certifications. Confirm the factory’s credentials and ensure the names match your supplier.

– Get a detailed production plan. Ask your supplier to outline which parts they handle and what (if anything) they outsource.

– Use a sourcing agent like us at China Product Pros. Professionals on the ground can verify the factory and monitor production for you.

– Request production samples. Ensure samples come from the actual factory, not just a showcase sample from a different supplier.

– Set strong contracts. Include clauses that prevent unauthorized subcontracting.

If you’re sourcing products, ask the hard questions. Know who’s actually making your goods. The extra diligence can save you headaches, money, and your reputation.

Have you ever come across subcontracting in product sourcing? What happened?