Repost: Alibaba.com Member Advice on How to Avoid Fraud

This comes directly from the Alibaba.com Trade Forums: "How to check your Supplier before ordering."   I don't think that it comes from the company, rather from a member because of the detailed advice and links provided. It's good advice on how to verify suppliers, avoid fraud and scams, and NOT have to resort to the Alibaba Fair Play Fund. The English is not perfect, but no matter, it is good solid advice from someone who has clearly been there. Happy reading: =================================================

How do I get help to check a particular Supplier?

First, DO NOT BE LAZY ... please read the Tips further below and also look at this link to see what members say about being lazy ... http://resources.alibaba.com/topic/18839/STOP_BEING_LAZY_handle_your_own_due_diligence.htm

Second, DO NOT OPEN A NEW TOPIC. Post your query in this Topic after you read the below Tips.

Third, STATE WHAT CHECKS YOU HAVE DONE. Merely asking if Seller XYZ is okay is an invitation to howls of protest. Tell us what you yourself have done to check out your seller and then ask your question. Members are very generous if you are seen to be trying hard. Otherwise, your post will be deleted or you will receive little response if you show you are lazy.

Tips to Check out Chinese suppliers by yourself ...

The focus of this topic is to empower you to do an informal check of your potential supplier in China. The stated steps are by no means a "guarantee" that your supplier will be a legitimate business. However, by following the steps here you should be able to eliminate the majority of common techniques used for fraudulent activity. Education and information are your best protection against fraud.

This topic is not a substitute for physical inspection of the manufacturing site. The purpose is to provide buyers with a "first line of defense" against fraud and/or shoddy goods. If you've posted a buying lead you no doubt have received many replies to your inquiry. This discussion is about knowing your potential supplier before you get too deep into negotiations.

100's of frustrated potential buyers can be seen on this link ...

http://resources.alibaba.com/topic/122/How_to_verify_if_a_seller_is_serious_any_tips_.htm?va=0

Carefully do your Due Diligence before you get into serius negotiations in order to avoid frustrations and/or fraud and;or shoody goods.

Your initial sales enquiry ...

Every case is different, but broadly say little in your first communication. You don't want to arm potential scammers with too much information to play you like a hooked fish on a line. Stay in control from the very outset with something like this:

Dear Sales Manager,

We are interested in your Widgets, product numbers X, Y and Z plus more information about your good company. 

In the first instance we may look at a small trial shipment to test our home market.

Kindly provide both FOB MOQ price and price for larger volumes at your earliest convenience.   

Concerning your good company, please indicate if References or copy of any recent Factory Audit, or similar, can be provided if we proceed to serious discussions.

Yours sincerely, 

Accordingly from the outset, you reserve enough control to make firm due diligence requests, if necessary, as talks progress.

Alibaba company profile ...

Look at their profile on Alibaba. Remember, many scammers simply sign on as sellers with false profiles. You or I could do the the same in 10 minutes. Ask yourself, does this make sense?

• Are a manufacturer's products in the same category? (ie does a shoe company sell electronics or vice versa?)
• Is there a separate phone number for the fax and land line?
• Is there a separate website listed off Alibaba that you can check?
• How long have they been a member of Alibaba?
• Are they a Gold Supplier, Trust Pass or Free Member?
• Look at the Company profile. Does the paragraph look generic or copied? You can highlight all or part of the paragraph and place it in the google engine around quotes ("xx"). This allows you to search the web to see if it is original or copied?
• Search the forum to check this supplier. Are there any negative postings? Use both the contact name and the company name.

The initial profile check should give you a general overview of your potential supplier. Decide now if it's appropriate to continue verifying. If the answer is "yes" then it's time to dig a little deeper. Website & Domain Verification ... Do a google or yahoo search. Look for any information that looks out of place. First, try the company name and the word "scam" or "fraud" in quotations. For example "shanghai shoes scam". Then search the name alone but always in quotes like "shanghai shoes". Websites in China are not unlike the ones in the Western part of the world. Don't be distracted by grammar or non-English. Carefully check the website "about us" section and then cross match that information with all other. Check their domain information using the following links. Pay close attention to the registration date, Registrar name, phone number, and contact info including email. www.whois.org www.dnsstuff.com Verify the phone listing ... Remember a free member Alibaba profile stating the supplier is in China is meaningless until you verify it. The person behind it might reside in any country merely using China as a shield. Check country and geographic codes. A fraudulent western person could even raise a Chinese supplier profile (and use a Chinese based party to collect T/Ts). Some western scammers use a forwarding number or a VOIP number to disguise their location. Numbers beginning with the prefix +4470 or +4487 are forwarding numbers that are rarely used by legitimate companies and not used by Chinese either. Some numbers can be checked here .... http://www.numberingplans.com//?page=analysis&sub=phonenr Once again the goal should be to find a "geographic number" which means they have a physical land line. Eventually you want to call the number and speak with your contact and at least one other employee of the company. Receiving product listing and price quotes ... After you post your buying lead you will undoubtedly receive mass information from many companies. Look at the detail for the products and again ask yourself some questions.

• Are the prices overly high or low?
• Do they only accept Western Union or 100% TT?
• Is there an appropriate amount of contact information?
• Are they overly pushy for payment?
• Is there a sensation of being "rushed"?
• Are the stated lead times reasonable?
• Is the MOQ too high or too low for the particular circumstance?

Pick up your phone ... Finally, pick up your phone and ring China. Dial the supplier's number/s. Sure, Chinese language will answer, but just keep repeating the word "English" ... they will find somebody who can talk in broken English. These days it costs next to nothing to call China from most Western countries. Buy an applicable $10 phone card from a local shop for use on your land line ... it will give heaps of talking time. And, dial their fax number too ... did it give a fax ring tone? Remember you are doing Due Diligence ... avoiding the loss of precious money. Your TM is a surveillance weapon ... Add your potential supplier to your "Contacts" list. You know how it "flashes" when a contact comes on or goes off line:

• Work out Chinese business days / hours against your local time.
• Is the Chinese party "online" mostly during Chinese business hours, as should be the case?
• Or, does the party spend too much time online during USA or UK business hours?
• Does the Chinese party work the TM too much on Chinese Sundays?

Any Questions and/or Further Tips? Please post in this Topic and do not open a new Topic for enquiries about a particular Supplier company.