How best to verify new trade partners is something many businesses involved in e-commerce ask us every day. Although it is safe to trade with most businesses online, it is important to avoid the “Low Price” or “Big Purchase Order” traps. Below are some useful tips to help you verify potential trade partners:
1. Ask potential trade partners to provide you with as much company information as possible, such as company profile, business license, export/import documents, contact details, etc. Beware of companies that have incomplete details or who only use mobile phones to contact you. If a potential trade partner’s business is registered in Country A, but their contact details are for Country B, it is important to ask them serious questions.
2. Use a search engine such as Google to verify their company information and contact details. Beware of businesses with a lot of complaints recorded against them. You should also use your potential trade partner’s local government website to verify their registration number and other contact details.
3. Ask your bank to verify your potential trade partner’s bank. If your potential trade partner’s bank is not trustworthy, ask them to change it.
4. Ask for a credit report company from your potential trade partner. It is important to confirm that they are not in financial trouble and have never conducted any fraudulent activities. When conducting credit verification, it is essential to first verify their identity to prevent fraud caused by identity theft.
5. Ask your potential trade partner’s local embassy or Chamber of Commerce to help verify their company.
6. Post questions on foreign trade forums, such as Alibaba.com Safe Trading Forums, to ask for help from forum members. They may be able to help you verify your potential trade partners.
7. If you are a buyer, you are highly advised to travel to your potential trade partner’s place of business to inspect their factory, production, products, etc. If travel is not possible, it is worth hiring a third-party Inspection Company to check the factory and goods.
8. Take a lot of time to discuss orders with your potential trade partner about the product, payment, shipping, etc. If they are unclear about their company and products, or the deal sounds too good to be true, you are strongly advised to stop all business with them.
Check out other useful safe-trading tips:
1. Click here to learn how to secure your payment
2. Click here to learn how to use arbitration clauses in your contract to reduce risks
3. Click here to check out the latest Fraud Case Studies
4. Click here to learn how to protect your online accounts