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The following article was published in our article directory on November 21, 2009.
Learn more about SpinDistribute Article Distribution System.

WATCH OUT! Offshore Wholesale Scams ABOUND!

Article Category: Business

Finding and developing a good working relationship with a reliable supplier takes hard work, some trial and errors and plenty of good luck. Some people get taken advantage of even before they begin their business due to unreliable suppliers promising to provide the best goods available but fail to deliver them. Others who have the experience and the necessary connections are far luckier to land deals with a dependable wholesale supply chain that really delivers on time with the quality they are looking for.

The problem is even more magnified when dealing with offshore suppliers. Due to the great distance between you and your potential wholesale supplier, there is a greater risk involved when dealing with offshore wholesale sources. So what should you be looking out for when looking to find reliable offshore suppliers you can depend on?

Legitimacy

The first thing you would need to do is to find out about the business itself. Are they legitimate? Do they have a valid license in the country of operation? Are they registered with the local business bureau? These are all good indicators of a legitimate and valid company. If they fail to deliver on any of these, then watch out! You may be dealing with the Mom and Pop stores that are posing as mega size suppliers who might not be as reliable or safe as you would hope for.

Payment

Different countries have different payment gateways and you would have to be familiar with these before you agree to commit to anything. Are these payment gateways valid? If they require escrow service, are these legitimate organizations? There has been some horror stories where one has been cheated out of the money in escrow simply because the escrow service itself belongs to a third party that is associated with the source. Many times, they would release the money even before the merchandise is delivered. Most overseas dealing would use a letter of credit or upfront payment, the latter being riskier and you would want to consider the choices that are available.

Delivery Issues

Check out the shipping rates. Some offshore suppliers charge exorbitant amounts for overseas shipping to cover for the lower prices they offer-- so you would actually be paying more than what you expect. Even when the merchandise is offered at unbelievably low prices, the suppliers are making money off the shipping and handling charges. So instead of saving money, you will be losing out, in a big way. Check out the different modes of shipment available and if they offer a third party carrier to transport your goods.

Shipping Time

Check out the time it takes to reach your place from the time the order is placed. If it takes too long, it could dramatically affect your business when supplies dry up. You lose your customers if they start searching for other retailers for the supply of their favorite products. If you have plenty of competitors this is really bad for your business.

About the Author:
Abbey Brooke is a stay-at-home mom of 5 who successfully operates a work-from-home empire!
For more information about wholesale, grab your FREE Guide to Wholesale Sourcing
Discover How I Secured An Exclusive Contract with Costco for Customer Returns
Part Two of My Coscto Contract: Fraud Prevention and Label Sanitization

Keywords: Wholesale, wholesale supply, wholesale source, wholesale item, drop ship suppliers

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