China Sourcing, The 7 Golden Rules To Avoid China Scam Companies

Author xlxmarketing 14.10.2009. | 19:45

china-supply-scam-main-image-copy

Sourcing from China.

No other phrase could fill business people with hope and dread at the same time.

On one hand the cost saving and business building opportunities of China sourcing are huge. It’s one of the reasons that Walmart spends much of its sourcing dollar in China (US$9 billion in 2008 according to China Daily).

But, on the other hand there is the risk of not getting what you want, getting faulty or damaged goods or even being scammed outright by potential suppliers.

So, how can you establish whether a potential supplier is a scam artist or a super source of low-cost goods?

In fact, finding out what type of supplier you are dealing with is as simple as following seven simple rules:

Rule 1: Avoid Companies That Offer Everything From Baby Shoes To Butt/Bum Massagers

If seller’s website/ B2B profile page has a wide range of products on offer then there is a good chance that you’re dealing with a trading company and won’t get the best deals.

Rule 2: Send A Test Email


The decision to drop hundreds, if not thousands of dollars on a shipment is not one that should be taken lightly and a lot of preliminary work should be done even before you get to the negotiation stage.

Email them, phone them. Hell, even visit them if you’ve got the time and money and you will end up with a better deal in the long run.

Rule 3: Avoid ANYBODY Who Is Slow To Answer Pre-Sale Contacts

If they don’t answer your questions when you haven’t bought anything imagine how bad it’s going to be when you’ve bought something and are actually trying to solve a problem.

Rule 4: Treat Anybody Located In Fujian With Skepticism

While it would be incorrect to say that suppliers from that region are all crooks and thieves looking to scam customers it is safe to say that many people who have tried to source from there have come away with a bad taste in their mouths.

Rule 5: Avoid Companies That Have Many Variations Of Their Name

When you are sourcing on the internet the companies you are looking for are likely to be at several locations with some including:

  • B2B Sites Like Alibaba
  • Their own website
  • Link directories

Check out all of a firm’s ‘Internet Real Estate’ as well as the Proforma Invoice (if you’re getting a price quote) and logo and marketing material.

If the company’s name doesn’t appear the same way twice, walk away.

And, if after contacting them, somebody gets back to you with an email address like mrwang82882882888888 @168.cn, asking you to contact him on his personal mobile or msn… Run.

email-from-wang-copy1

Rule 6: Treat Any Factory That Doesn’t Put It’s Location In It’s Title With Skepticism

Chinese companies almost always have a city attached to them and so ones that don’t have one in the title should be treated with a great deal of caution.

EG

  • Back Alley Airfreight (Shanghai) Co LTD tick
  • Back Alley Airfreight Co LTD cross

Rule 7: Don’t Deal With Companies That Claim To Sell Brand-Name Products

fake_ipod

Only people who go through select channels and pay brand name prices get brand name products.

It is very unlikely some small factory in Dongguan will have the Apple iPhone or Nintendo Wii that has been licensed and approved by the likes of Steve Jobs.

And if they are blatantly ignoring copyright even their non-counterfeit products might be a scam.

By following these seven rules, and by keeping your ear to the ground, you should be able to avoid the scammers and poor suppliers in China and find only the factories that will get you great deals and bring in fat profits.



Author xlxmarketing 14.10.2009. | 19:45
Write a comment

2 Comments

  1. Polprav October 23, 11:52

    Hello from Russia!
    Can I quote a post in your blog with the link to you?

  2. jose valenzuela May 26, 07:02

    I think this is great

View comments

Write a comment

Leave a Reply

Watch latest gadget videos

Chinavasion Video


action cam

Add Chinavasion on Google+

Add Chinavasion on Facebook

Archive