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5 Step Method to Verify your Wholesale Supplier

Discussion in 'Supplier Discussion' started by Remises, Aug 14, 2006.

  1. Remises

    Remises

    Joined:
    Jul 19, 2006
    Messages:
    40
    Here are the 5 points I always check before going into any transaction with a supplier (excerpt from my book, so please forgive me my bad english, I may not be a good translator):

    AVOIDING SCAMMERS

    So now you have targeted your products, you are ready for sending your inquiries.
    The fact that you are not used to international business will make you the perfect victim for scammers, they will feel it in your messages and will take care of you. It’s now your time to defeat them at their own game.

    You can’t even imagine the creativity of scammers to convince you that you are dealing with a real company. But there are many manners to be sure that the person you are in contact with is reliable.

    The checking process is simple (and free !), follow these checking points anytime you feel ready to place an order:

    - Check the quality of your contact’s communication,
    - Check the accuracy of the information you are given about products,
    - Check that the company have a registration number,
    - Check the company’s bank account,
    - Check the company fax and phone numbers and their postal address,
    - Check their internet website.

    Here’s the detailed checking method for each point:

    1 Quality of the communication and prodcuts information

    When talking about wholesalers, we are talking about professionals. Most of them are managing huge stocks and are not common with being friendly. Just imagine an hundred faxes and phone calls per day, with customers asking you to always give them lower prices (Yes, that’s you!).

    However it can be stressful, wholesalers know that a single price error can be fatal to their business. If you loose by mistake 50 cents on each 2,500 products sold, the total loss is 1,250 $. A company cannot handle such a loss two times in a year. Be sure that wholesalers know their job and are very accurate when spreading information.

    The first thing you will be able to verify is their ability to communicate information. Maybe you will not get very friendly emails, but be sure that any information you will have asked will be given.

    Think about something: scammers never have the products they are selling. If you ask a very technical question, a wholesaler will give you an accurate response, while a scammer will ignore it or will mumble about it.

    A checking example: “Will the Ipod Nanos have the good AC/DC plug, I need the 220/240V European norm?”
    The scammer’s answer will be: “Yes of course, we have the European models!”, when the professional’s one will be: “Since Nanos are charging via an USB 2.0 cable, power plug is an option. They will charge on any computer on earth equipod with USB 2.0. Language can be chosen at first start or changed later”.

    Don’t hesitate to ask pitfalls questions like this one, you will immediately know who you are in contact with. You are a seller, all you want are sexy products, you are not assuming to know all about them, don’t fear to ask even silly questions.

    2 – The company business registration number

    First of all, ask the wholesaler to send you proof of registration of the company. Depending of its state or country, the company have a registration number or VTA/TVA number. This number is not a mystery, it’s the identity of the company in its country, its business authorisation number. If you can not have this number from your contact don’t go further; this person is a scammer.

    When you have this number, search the web (like google.com) for a business verification site in the country where the company is registered. This service is not always free, if you cannot afford a fee, send a fax to the business information center of the city where the company is located. It will only cost you a fax.

    For Europe, check this usefull site:
    http://ec.europa.eu/index_en.htm

    HINT : To find these verification websites, use www.google.com, and type « google thailand » in the search bar, to find the google thailand website, then check “only Thailand pages” to refine your search results.

    Than type « verify company » and you should get good results in english. If you don’t find such service, ask your wholesaler for the address, phone number and fax of the chamber of commerce/business where their company is registered. It should not be a problem for him to give you this information.

    If he wish to send you a copy of his company certificate, let him do so, but this should be only a document for further verifications, and not considered as an ultimate proof. False documents are very easy to produce today.

    3 – Verifying the company bank account

    Let’s imagine you have placed an order and the method of payment is T/T (for Telegraphic Transfer, well known as bank to bank transfer). Ask your contact for its bank full address, phone and fax number. Verify all these on the bank website and call the bank to ask them if the bank account numbers are good (pretending your T/T has been refused by your bank) and try to know if this is a company bank account.

    Due to a protection of bank information, you may not be able to verify all. Give the bank all the details you have and just ask them if the information you have is ok.

    4 – Verifying the postal address, phone and fax numbers

    After some emails regarding a possible order, give a short phone call to your wholesaler. During his work hours of course, but without telling him that you will call him.
    You will see immediately if he remembers you, he will not try to argue but only to bring the transaction to an end (this is business, you know).

    After that call (or before), check the prefix of the phone number. Try to see if the fax number match with the company number, are you calling on his cell phone, is the +32 the good prefix for Germany?

    With google, try to find the phone number of the police office, or a school, or a shop near the company’s street and see if it tends to be the same first local numbers.

    The best way to verify a phone or fax number is to find the company in the yellow pages of its country.

    5 Verifying the company’s website

    If your contact has a website, you’ll have to verify it too. Try to find a website specialized in domain name registration with Google.com.
    You can try this site for example:
    http://www.raynette.fr/services/whois/

    Type the full wesite adress (eg. : www.superwholesaler.com) in the « propriétaire du site » bar, and and click on « proprietaire et infos ». It will give you a large view of who registered the domain name, if it’s a company or a web agency. Look after the name and contact info and see if they are the same as your contact ones.

    You can also check the website itself by clicking with your right mouse button and select “properties” in the menu that will open. The images should have an address following the same directory (eg.: www.superwholesaler.com/ipod-box.jpg). If the images are coming from another site, you can be sure this is a scammer site, using a mirror site, leave this contact immediately.

    Last thing : ask your supplier for some pictures of his stock or products, with the day newspaper, and a note with your name and his.
    smartlifeuk, Cody, Amelia2 and 28 others like this.
  2. wragge11

    wragge11

    Joined:
    Nov 25, 2005
    Messages:
    752
    WOW, great post, really helpful for newbies!
    Bgabbott1984 and Jacob82 like this.
  3. Saajan

    Saajan

    Joined:
    Oct 30, 2005
    Messages:
    10,731
    Hi,
    Yes this is a very good post. Points out the things you need to know.

    Hope this helps.
    Jacob82 likes this.
  4. double_d77

    double_d77 Retired Moderator

    Joined:
    May 30, 2005
    Messages:
    2,158
    Excellent post !! thanks for sharing and helping out !

    Dave
    Cody and Jacob82 like this.
  5. omidlk

    omidlk

    Joined:
    Jan 7, 2006
    Messages:
    53
    Awesome post. thanks for the info. shouldn't it become sticky?
  6. Anthony

    Anthony

    Joined:
    Oct 17, 2004
    Messages:
    17,274
    Sure - Why not.. :)
  7. Remises

    Remises

    Joined:
    Jul 19, 2006
    Messages:
    40
    By the way...

    I think there should be a BIG WARNING on top of the suppliers forum (in the title) to be sure that all newbies are coming and get the crucial information they need : how not to get scammed.
    I am not original at all as I've been scammed due to lack of information and because no one did prevent me of such things.

    Peace and business !

    Remises
  8. Remises

    Remises

    Joined:
    Jul 19, 2006
    Messages:
    40
    Oops ! I forgot a wonderful thing to do :
    Just type "name-of-wholesaler forum" in Google and have a look at their feedback in Forums all over the world.
    It really does release you from a big effort.
  9. printcolour

    printcolour

    Joined:
    Aug 15, 2006
    Messages:
    0
    Hi all
    Aim new to this site also and have been scammed sometime ago.

    I used the criteria mentioned by Remises above to source a supplier today a scam I believe (**************)

    I enquired abour the purchase of ipod nano's and asked about the 220/240 vault requirment, he emailed to say this plug comes supplied.But as mentioned is not required with genuine apple ipod nano as you use a USB canle for charging?

    Just thought I mention it just in case someone else does goes ahead and sends money.
  10. Remises

    Remises

    Joined:
    Jul 19, 2006
    Messages:
    40
    Another important thing...

    We are very interested by the sales of high-end technology products, may it be RAM, CPUs, laptops, MP3 players, and all these digital cameras.

    If you want to test your source, use www.newegg.com or some reviews websites like http://www.digitalcamerareview.com to catch precise information about the products you seek.

    Ask a very technical question and you will see what comes up as a response to your inquiry.

    Best sales to all !

    Remises
  11. YNWA

    YNWA

    Joined:
    Feb 10, 2006
    Messages:
    4,082
    Great post...been up a while but I only just read it.

    :niceone:
  12. cherylsonoda

    cherylsonoda

    Joined:
    Oct 14, 2006
    Messages:
    102
    YNWA,
    Can i ask of your PSP wholesale price? i might order in the future.Thank you.
  13. RWA

    RWA

    Joined:
    Dec 21, 2005
    Messages:
    2,989
    This is not the thread to post your enquiries in.
  14. cherylsonoda

    cherylsonoda

    Joined:
    Oct 14, 2006
    Messages:
    102
    Ohhh okay.It's just i was checking this thread and came into my mind to asked you.
  15. YNWA

    YNWA

    Joined:
    Feb 10, 2006
    Messages:
    4,082
    I will send you a price list over the weekend :niceone:

    Back on topic :)
  16. cherylsonoda

    cherylsonoda

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    Oct 14, 2006
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    102
  17. chukwu

    chukwu

    Joined:
    Jul 18, 2006
    Messages:
    17
    Chinese Registration Number

    Hello a chinese company have just given me there registration number but on the link i in part 3 of the 5 steps i cant chose china as the state.

    Does anyone know where i can check the company out
    Nimaa12 likes this.
  18. Club

    Club

    Joined:
    Dec 30, 2006
    Messages:
    168
    Very useful and well written. Thanks.
    Nimaa12 likes this.
  19. wasa1977

    wasa1977

    Joined:
    Mar 11, 2007
    Messages:
    3
    Very useful post for newbies. Great thanks :) :rolleyes:
  20. WholesaleMiami

    WholesaleMiami

    Joined:
    Mar 10, 2007
    Messages:
    7
    Excellent Post!!
    SBD WHOLESALE likes this.
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