Although internet is convenient, there exists constant risks when sourcing from China, sometimes using a China sourcing agent is g good choice, specifically for foreign firms that are just beginning their worldwide sourcing operations, so they lack the much needed experience in the trading. The most common risks involve trust, product quality, frauds as well as scams.
Scams on Alibaba
Scams on Alibaba are rarely the type that take the money but not ship the products. For example, the supplier provides good quality sample, but the mass goods are poor quality, this could happen when the buyer paid full amount before the production has finish,It is important to negotiate the payment terms, most will set the terms as 30% deposit before production and the balance cleared after production. Once again, good sense is the trick.
The European buyers must keep in mind that the products they purchase must meet EU security standards and also labeling requirements. Especially electronics have strict security standards.
Keys to avoid scams
It is essential to make detailed contracts with the vendor. Nonetheless, the important step the customer can take in order to avoid any type of scams is to carefully check the supplier’s background. This is the best way for a remote foreigner to feel whether the supplier could be relied on or not. The basic rule is, if something sounds too good to be true, it normally is. Frequently big, a lot more specialist suppliers might have higher costs, however these vendors might be a lot more reputable compared to little producers with reduced costs. Typically large factories have experience in collaborating with international companies, and also deal expert customer support. Smaller sized distributors could not have the sources to employ personnel with efficient English skills, and may not run as properly. Consequently it could be a good option for an SME to do business with a professional partner, specifically if the SME is sourcing from China for the first time. Cheap price is not always the best goal to pursue.
Common sense is the key. If the purchaser feels that something isn't right, too great to be real, it generally is, if the prices are too much lower than other suppliers, there is more likely to be a trap, the buyer needs to be ready to leave.
One should know that it is simple to find a supplier, but the tough part is to find the right one. It is viable to consider using a third party's service of China sourcing agent, because they have easy access to visit the suppliers in China, also in order to decrease business culture difference obstacles.