Can you trust wholesale

Instead, you could start by sending the goods to your own warehouse first and establish some rapport before you decide to use their drop-shipping service. In addition to checking goods, you will also want to inquire about different payment methods for the merchandise.

Most scammers prefer Western Union or even bitcoins as the payments are untraceable although bitcoins have become a more widely accepted payment recently. However, if the supplier accepts credit cards, or better yet checks, then it likely has a merchant account from a legitimate payment processor that has already verified the business.

The BBB can help verify the legal status of the company and will provide information on any claims of fraud. Complaint websites such as Ripoff Report and Scam. Taking these steps will allow you to ensure that the supplier is real and trustworthy or will let you detect a scammer before they can take advantage of your business. There are several actions you can take to potentially reverse the fraud and prevent the scammer from hurting others in the future.

If you used an official marketplace to find your supplier—Alibaba, eBay Wholesale Lots— you might be able to reverse the issue. Many of these sites have rules to protect buyers against scam if they report the fraud. If it does, report the scam to your marketplace so they can take action. If your fraudulent supplier is a distributor rather than the manufacturer, one course of action might be reaching out to the actual manufacturer of your goods.

Manufacturers want to ensure that their distributors are conducting reliable, high-quality business. With that in mind, manufacturers should be eager to hear about your experience with a fraudulent distributor. Notifying them may start a conversation between the manufacturer and distributor if they are directly linked without other distributors in between. If enough complaints have been filed, it may even prompt the manufacturer to cut off their supply to the distributor.

You can also try posting on industry-specific forums, but be sure to carefully check their rules. Many forums, especially ones associated with marketplaces, prohibit specific seller complaints as spam. If something seems suspicious or odd, always investigate it. For more information on reporting a wholesale supplier scam, check out Wholesale Forum. All rights reserved. You should really do your research before doing business with any company that doesn't pass this test.

In most cases, you should avoid doing business with these types of businesses altogether. There are a few exceptions, and we'll touch upon those in a later edition of this ecourse. The second topic I want to discuss today is how to protect yourself from fraudulent sellers.

Unfortunately, there are a number of scammers out there eager to take advantage of retailers. For this reason, I recommend that you purchase everything through one of two options: 1 - Pick it up and pay for it in person 2 - Use a Credit Card so that you may file a chargeback if you are defrauded by the seller 3 - Only use PayPal IF you fund the payment by a credit card.

Explained Below These three payment methods will almost guarantee your protection from wholesale scams, and I only advise paying using another method if you know a supplier as honest, or you highly trust the recommendation of a colleague. When first doing business with a wholesaler, DO NOT use a money order or cashiers check, and run the other way if you're approached by a seller wanting you to pay by Western Union. This is the payment method of choice for many overseas scams.

Every major business should offer credit card sales as an option, and if they don't then it's probably not worth the risk of doing business with them. They should at the very least offer PayPal as a payment option; however, if you do use PayPal, please take the following advice seriously.

If you pay attention to only one thing from these reports, please let this be it. Pay by credit card through PayPal so that you may file a chargeback through your credit card company if you are defrauded. But why? This is exactly what PayPal would like you to believe, but it just isn't true. I know because I've been on the receiving end of a major beating at the expense of PayPal's worthless Buyer Protection Program.

They didn't deliver, and I learned the hard way that the Buyer Protection Program is not all that it's cracked up to be. PayPal's Buyer Protection Program will only protect you if they can recover funds from the scammer. If they can't recover funds, you receive nothing.

And of course, by the time they find out about the scam, the scammer is either long gone, or he's in custody and thousands of victims are trying to get their money back out of the little money that's left. Top Positive Review. Top Critical Review. Rating 5 stars 2. Other Verified purchase. Verified site experience. Contains image or video. English only. Katarina L.

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