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Learn To Steer Clear Of The Supplier Scams

Dealing with international suppliers is a promising endeavor, but there are many risks involved too. Buyers often complain about falling victim to scams, losing all of their hard-earned investments in the process. Therefore, it is better to learn about how you can avoid supplier scams along with a few other details. Nowadays, businesses use various digital means to indulge in profitable dealings. Online communication between buyers and sellers has indeed added significant convenience to these operations. While the benefits of digitalized business dealings outweigh the drawbacks, the negative aspects still need to be addressed.

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The best importers who have been purchasing from foreign suppliers could fall prey to scammers. Hence, being prepared to tackle such fraudulent activities before beginning your search for an international seller is a wise decision. In layman's terms, a scam relates to a scheme or plan devised to cheat someone. It is when a supplier intentionally doesn't deliver according to the agreement. For instance, a seller can send inferior quality products after agreeing on the best ones. There are many events that dictate how suppliers scam their buyers. A distributor can pose as the manufacturer of goods they are delivering.

There are all types of scams you need to be aware of to avoid them. Let's try to dig deeper and see what kind of fraudulent schemes do the suppliers perpetuate;

  • Supplying Counterfeits:Did you know up to 3.3% of the global trade is of fake goods? You can purchase counterfeits and sell them thinking they are original products, but it could put your business in trouble with the legal authorities.
  • Disappear After Finalizing Deals:One of the most commonly witnessed is that the supplier pulls a disappearing act after agreeing to an agreement and receiving advanced or full payment for the goods.
  • Posing As The Top Supplier:This happens when a business claims to be the leader in its respective industry when the reality is completely opposite. Such companies often make big promises and fulfill none of them.
  • Unexpected Increase In Price:A lot of times, suppliers increase the price of goods after receiving advance payment. Some sellers also demand more prices for the same amount of products when you place another order with them.
  • Non-Existent Company:Sometimes suppliers claim to run a legitimate company when it is a fake one. It is a bit challenging to notice such businesses as they seem pretty authentic on the outside.

Many people confuse fraud as mistakes and inefficiency. You need to be wary when the supplier is giving late deliveries, asking you to transfer payment to an unspecified bank account, and making changes to the original order without consulting with you.

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There are many signs that depict that you are being scammed. You need to be alert of such occurrences and refrain from ignoring them as minor inconveniences. Open your eyes and shed some light on how suppliers deal with you. Needless to say, doing this goes a long way in saving you from incurring substantial irrecoverable losses.

How To Find Trustworthy & Reliable Suppliers?

Whether you want to find suppliers operating in China, France, Germany, America, Korea, or any other country, it is possible to find the sincerest ones. All you have to do is choose a foreign trade B2B platform to connect with manufacturers, exporters, distributors, wholesalers, and even retailers who refrain from fraud. B2B marketplaces nowadays rely upon digitalization to provide effective and efficient services to businesses worldwide. These platforms function free from the restrictions of borders, time zones, languages, etc.

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B2B firms, along with third-party companies, verify each supplier before finalizing their registration to protect other businesses from getting trapped. You can look for B2B sellers through the selected portal's exclusive online website or smartphone app. These platforms cater to the unique requirements of all industries with no exceptions. All negotiations between you and the suppliers take place under the supervision of experienced B2B personnel. Professionals can even step in to communicate on your behalf to ensure there is no misunderstanding between you and the suppliers.

Following is a list of the leading international B2B trade platforms;

  • TradeWheel
  • Alibaba
  • GlobalSources
  • Made-In-China
  • Dhgate
  • ECVV
  • iOffer

Surf the web to learn about any of these B2B portals, and you will come across millions of businesses praising them for their excellence and competency. This is an entirely safe method of trading with suppliers across the globe as it secures incredible returns against your hard-earned spending while eliminating every uncertainty from the process. If you no longer believe in the digital means of working with a globally recognized supplier, availing the services of a B2B eCommerce marketplace is going to change that. You can easily place sizeable orders for different types of goods with suppliers enlisted on a B2B platform and expect timely delivery of promising products as agreed.

What Can The Victims Of Supplier Scams Do?

One must do what they should in similar situations, ask nicely before taking strict action. Here's what the victims can do;

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  • You can contact the supplier and educate them about the inferior quality of the goods upon receiving the shipment. Consider litigation if the supplier doesn't resolve the issue. Hire a law firm in the seller's country, send a notice with a deadline, and take them to court if your demands are still not met.
  • The supplier running away with your advance payment is a fraud, so you have to file a complaint with the local law enforcement authorities. Meanwhile, communicate with the suppliers to ask for a settlement. A formal complaint with the right organizations conveys to the supplier that you are serious.

Another thing you can do is use the internet to spread awareness among other importers about the fraudulent supplier. Post reviews on online portals and openly talk about what happened to you so that others don't fall into the same trap. Something you should know is that fighting a legal case overseas can prove to be a costly endeavor. Hence, measure the estimated cost against your current losses to see if it will be worth it. Going through the proper channels and implementing adequate strategies can save you from such troublesome events.

Keep An Eye Out For These Warning Signs

Suppliers scam importers without any intention of compensating them, which is why you need to strive hard to avoid such occurrences altogether. Here are the red flags that make fraud apparent;

  • Unavailability of the supplier's business license and other verified documents
  • No sample policy
  • Impatiently asking you to place an order and submit payment
  • The website lacks basic information, like contact details, address, etc.
  • Less responsive toward your queries

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Every fraudulent person or firm has a tell. You need to be vigilant enough to pick up on it to save your investments from losses. Make sure to remind them to provide documents for authentication purposes. In addition to this, take working with a B2B platform into account as you don't even have to worry about a language barrier to cause confusion.

Final Thoughts

The wisest of us can be scammed, so one can only take so many precautions. The 21st century is full of technological advancements that reduce such uncertainties from the dealings between exporters and importers. Nowadays, everything is available on the internet, so do thorough research to stay safe. Engage channels like B2B eCommerce platforms determined to help you reap the benefits of purchasing wholesale goods from overseas sellers.

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Nov 9,2021

Posted By Admin

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