I always tell our clients and also my employees that communication is the key to success. We come to know each other and judge moving forward with the other party or not, after communication.
Every businessman in the international trading field are warriors, we encounter culture differences, scammers, late of delivery, quality and quantity problems, but nothing can stop us!
And from now on, I would like to share my stories working in the stocklot field. I will be more than happy if my stories can help you.
Charpter 1: The Scammers Are Everywhere
Laws and Regulations are good, but can not protect us, if we give consideration to loses and gains.
Simple, it is not easy to locate the scammers and prosecute them, in the foreign trade field. The costs on time and money is not worthy, compared to our gains.
I have talked with factories in China who were scammed, some even went bankruptcy.
- In 2016, many Chinese factories were scammed by a trading company placed order on producing for brand US LIFE. We helped one factory sold 50,000pcs Men’s Hoodies , and another factory still have 18,162pcs Men’s Jackets waiting to be sold (currently talking with a client who is interested to buy);
- In 2017, many factories were scammed on producing for brand RQQBA. And many of them come to us asking help on selling the stocklots out, including 45,014pcs Men’s Hoodie, 43,293pcs Men’s Polo Shirt (Note: this stock was sold), 12,272pcs Lady’s Flannel Shirts, and 105,084pcs Men’s Western Style Trousers.
Some factories have bought insurance from SINOSURE (China Export & Credit Insurance Corporation) and can get some loses back. Those didn’t, are enduring the disaster-styles are produced for US market and the measurement is big, factories can not sell in China, and have to sell at very cheap price. Those scammed factories are get connected now and trying to find the trading company, unluckily,they can not. The scammer is well prepared.
By talking to the factory managers, I found orders placed are big quantity (see quantity mentioned above), but tech packs are really not professional. For example, the 12,272pcs Lady’s Flannel Shirts are 8 colors, but the scammer even do not name those colors, instead, they use codes like 2016-001, 2016-002 only.
And frankly, this is why our company prefer deal with professionals –dealing with professionals means low profit, but safe trading and long term cooperation.
The above stories are about Chinese suppliers being scammed, and for sure, I understand many buyers have been scammed by Chinese suppliers. We can not say Americans are scammers, neither to Chinese. Scammers are everywhere, we need to protect ourselves.
Here are some methods on how we check clients and suppliers’ reputation before moving forward with them:
1, GOOGLE, GOOGLE, GOOGLE! Google every information we have on the potential partner: company name, email address, domain name, mobile number, IM accounts, social accounts…
- If we can find some information, it would be good, will use the info. found and make a decision;
- If no info. found, we will be very careful, it is hard to imagine one company do not have info. on the internet nowadays. This might happy only under very rare cases. A phone call conversation, or a video call via whatsapp/skype would help a lot to avoid making the wrong judgement.
2, Try to find out how many years the contact company/person has been in the business field. This is to verify the contact is professional or not. Sometimes several questions could get the scammers exposed. For example, one of our client asked his new potential supplier: do you know RN number? And the supplier have no idea on RN. So our client moved away.
3, And for sure, if we can find an acquaintance who know the new contact, it would be great. It seems there are many companies in a specified field (i.e., my business field-apparel stocklots), but the professionals know each other. The world is flat, right?
For sure, will continue share the stories.