Dealing with wholesalers and preventing scams

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Apr 3, 2005
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I think this ties in pretty well with the following:
http://thewholesaleforums.co.uk/forum/showthread.php?t=511

If I have missed something, please feel free to add anything you want

This information can be used with your first few transactions with a new supplier:

Stage 1
When first contacting a seller, ask for the following:
1) Sample availability
2) Pictures
3) Minimum Order Quantity
4) Methods of payment.

Some "wholesalers" might simply be brokering a deal in which case, be extra careful

If everythng seems alright, then move on to stage 2.
Stage 2

Negotiating a deal: call them up, email them, talk to them over msn or yahoo...basically chase them up!! A little haggling never hurt anyone. You might end up getting better than you had hoped for

Word of caution: try and keep a record of your conversations.
Did the wholesaler pass stage 2?

Stage 3

Make sure you check out the Name and Shame section of this forum ;). Also make a post on this forum if you have any doubts.
Do your research before hand on the products you are interested in. learn how to identify fakes: this applies specially to clothing and accessories.
Note: I have actually seen fake Ipods!!! Beware of those too.
Trust your instincts. If something doesnt seem right, then dont go for it. There are plenty of good deals to be found. Wholesaling, like any other business is also very competitive. So dont fret if the wholesaler you found doesnt offer good prices.

Stage 4
Payment:

Ask for customer references.
Get the phone number and address of the wholesaler. Talk to them in person if you havent already.
Have you ever gotten yourself verified by Paypal? Why not try something similar to their verification process. for example, send them a small amount of money and ask them to tell them the amount they received. this is just to verify their address.
Ask for a Proforma Invoice
Ask for a written guarantee in case goods are faulty or damaged.
Also insist that you want to inspect the stock in person and ask if they would use escrow or COD.
Note about escrow: Only use Escrow.com for transactions.

Unsafe payment methods: Cheque, money order, bank transfer, western union and so on. If the seller is a fraudster, you have no way of getting your hard earned money back.

Paying by credit card and/or paypal can be safe but be careful anyway. With credit cards and paypal, you can do a chargeback in case something goes wrong with the deal.

If all goes well, why not tell us about your experience?

and remember: dont risk more than you can afford to lose. even if the supplier is legit, you dont want to be stuck with a thousand items which do not sell well
 
Apr 3, 2005
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Thanks James

I will also add more guides soon

If anyone would like to EXCHANGE contact information on reliable suppliers, please feel free to PM me. I'm not selling any information, i'm merely willing to share it provided you share yours!

Harry
 
Apr 3, 2005
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also be aware of "counterfeit" and cheaper than wholesale electronics. its possible! electronics such as laptops can have their components stripped out and replaced with cheaper compnents which result in loss of performance

Also beware of buying from the following countries:

Italy: never heard of brand electronics being made there. if you do find someone selling electronics from italy, insist on COD or fly and buy.

Eastern Europe: surely you must have heard of the romanian scams on the internet. again, as with italy, do a fly and buy or COD.

Indonesia: another scammer hub. scammers from there also seem to sell cheap, counterfeit electronics as i have mentioned above.

Hong Kong: Has a very large number of suppliers. Still be careful in dealing with them. Fly and buy is still your best option

Malaysia: They do manufacture a range of electronics. Be careful in dealing though. Most brands have manufacturing plants all over the globe..do your research first. For example: if you want to buy Motorola phones..first find out where they have manufacturing plants. Then find out the actual company that manufactures for Motorola. I know that a company called Compal is responsible for this in S.E. Asia ;)

Nigera: come on...enough said

I typed this up in literally 3 minutes, so please feel free to add more and/or correct me

Thanks

Harry
 
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