How to verify Chinese supplier when doing your business on the Internet?

Discussion in 'Growing and Managing a Business' started by tiancai20121, Dec 15, 2011.

  1. tiancai20121

    tiancai20121
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    Nowadays, as it’s very easy to do business on the Internet without going out of their home. Because of the high cost of the traveling, more and more small wholesalers are sourcing products in China on the Internet and contacting with the suppliers from China.
    In most condition, the suppliers on the Internet are good and trustworthy, but some frauds or liar do exist. A lot of foreigner businessmen are always doubting if the supplier he is contacting is a real business partner or not and find it very difficult to verify them on the Internet. Well, here are some tips for your reference.
    1) Check the company’s information.
    In most condition, the scammer do not have their real address and telephone number and fax number. They will provide you the mobile No. (such as 0086-135050xxxxx, which is very easy to be registered in China without indentifying the real person and it make very difficult for the police to find the owner) for the contact. The standard Chinese phone No. should be like this: 0086(country code)-755(area code)-56745670(phone Number, usually 7-8 digits).
    2) Check the company’s information on the Internet
    Use Google or other search engine and search the company name. Find the relevant information in the result. Usually, the scammer’s information will be shown in different media mostly are posted by those who have been cheated by the company.
    3) Incredible low price
    To attract the buyer to buy their products, the scammers usually quote their price in an incredible price. If the price is half of their competitor or even lower, you should be aware now. You should investigate why they can produce the products in such a low cost. After all, no one will do the business without making any profit.
    4) Payment term and delivery method
    The scammer never accepts L/C as their payment term, as they do not have real company name registered at all in the local government. The payment term the often use is Western Union, T/T. The shipment is also not in a formal method, they usually deliver by couriers to avoid the examinations of the Chinese customs.
    One of the most effective ways to avoid scammer is to find a third party, a buying agent in China to do every work for you. Usually the Chinese buying agent will find different suppliers for you to choose the most competitive one both in price and quality. And act for you the quality control service in China and following up orders in China for you. In most condition, it saves you a lot of work and risk. The cost for the agent is not high, usually only 3%.
     
  2. euso

    euso
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    Welll for me, sometimes use one called 'credit report service' from EC21.com.
    I can check the credentials of Chinese companies which I would like to make contracts.
    Please refer to http://www.ec21.com/html/ec/acp/acp_01.html
     
  3. Navida

    Navida
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    You may demand any legal document like copy of company policy or NTN number. Moreover, you may also demand copy of bill or payments that they have made with other companies. To get more ideas about it, you may visit "dailytrader.com" and "businessideas.com".
     

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