The internet has become one of the most reliable and dependable tools for online wholesale traders to discover and exploit the latest global wholesale trading opportunities conveniently. With the rapid increase in internet usage, online business frauds have also become more frequent. People have become smarter and adept to cheat people. In the face of increasing vulnerability, some good online wholesale directories take serious measures to add suppliers to online portals and remove fake information immediately from their websites. But you should never fully rely on others to do all the work for you. The best practice is to pay full attention to the information provided by the suppliers prior to making any transaction. Let’s review a few simple safe trading tips that can help you to avoid B2B business scams.
Know your supplier well before placing an order
It is one of the most significant trading tips that definitely helps you in avoiding scams. China is one of the world’s fastest growing economies and offers products which are cheap. Therefore, the majority of wholesale suppliers prefers buying from Chinese wholesale suppliers. However, it does not mean that it is the best way to get the same original product at the cheapest price. This is the point where most of the wholesalers get cheated. They go for products without knowing the quality or without conducting a research about the product. You can buy from Chinese suppliers but make sure either you know the supplier very well or are very clear about the quality parameter for your product.
Beware of generous offers
The internet poses a high risk of cheating on both sides (sellers & buyers) as both are strangers. Whenever, a newbie gets into the wholesale business, he receives a multitude of worthy yet unreliable offers that one must reject in order to learn the market tricks. Do not get tempted by exceptionally high or low price offers because these offers are usually traps. A special tip for newbie is to ask for the business credentials from wholesale suppliers such as a permanent office address, fax number, business name, bank accounts for transactions etc. These things can tell you a thing or two about the business and whether or not it is genuine. Legal companies get themselves registered with the Chamber of Commerce or official business centres.
Check Payment Method
Most of the con-men do not believe in the safe payment method. They ask for payment through Western Union, online transfer or are keen on Money Gram. Beware of such sellers and never pay through these means but choose other safer methods like PayPal or Escrow. A scam artist will definitely reject your offer when you will ask for a safe payment mode. Deal with them only after checking the authentication of such companies. If the location is not correct, it is suicidal to buy from them.
Carve contract based on transparent terms & conditions
Once you have finalized the supplier, it is the time to sign a contract. The contract must narrate easy to understand, transparent and straightforward terms and conditions. It should cover all the important points such as product type, quantity, quality assurance, payment method and duration of the contract. Before signing a contract with any supplier, make sure you have read it thoroughly and it does not have any hidden terms and conditions. Keep a signed copy of your contract to prevent any fraud.
Buying wholesale electronics
Keep in mind that most of the people get scammed when they deal in hi-tech electronics or digital products such as mobile phones, iPods/mp3 players, laptops, DVD players, Play stations and related items. Mostly they fall prey to sellers or scam artists who offer such products at extremely low prices (around 60-80% discount). Before falling into the trap of any such company, make sure to check the profile of the company and compare the prices with other wholesale suppliers.
Besides keeping these points in mind, you must seek help from industry experts by attending seminars on fraud-prevention tips and techniques.
Sasha Gibbs is a professional writer, she is keen to write on topics related to Global wholesale trade, business marketing and suppliers businesses.