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Avoiding Fraudulent Wholesalers

Avoiding Fraudulent WholesalersSometimes intelligent businessmen who have worked hard and earned their own money lose it to deceptive, fraudulent wholesalers.  It leaves them feeling frustrated, cheated, and betrayed.  Like it or not, there are a lot of merciless people who present themselves as up-right businessmen.  You need to know what to look for, so you won’t fall prey to them.

Here are six signs to help you determine whether or not you’re dealing with a fraudulent wholesaler:

  1. Talk to the wholesaler on the phone.  If the wholesaler sounds unprofessional or doesn’t carry on business-like conversations they may not be what they claim.  Also, look for only simple answers like “Hello” without mentioning the business name or other simple answers like “Yes/No.”  These are indicators that you may be dealing with a fraud.
  2. During the initial contacts, request to see a business license or sales tax ID. Legitimate wholesalers will usually supply these. US sellers desiring to buy from US wholesalers need a tax ID.  If you’re living outside of the US, you no longer need one.
  3. Request product samples.  Sometimes, wholesalers may be suspicious. Usually, however, wholesalers don’t see anything wrong with offering a product sample.  Of course, it is at your expense, and the price is higher.  If your prospective wholesaler doesn’t offer one, be sure to ask for the reasons why.
  4. Be careful about unsecured payment methods.  At first, wholesalers say they only adhere to secured forms of payments like credit cards, Paypal and others.  At a later period, however, they may declare that only wire transfers or western union are accepted.  Not all wholesalers resorting to unsecured payment methods will be deceitful, however, many deceptive people operate in this manner.
  5. Look on the website for their physical addresses and contact details.  If their website doesn’t one, you should be cautious.  Request their contact details.  Ask if you can come in and check on their offices.  If they are a legitimate business, this shouldn’t be a problem. 
  6. Ask for photographic evidence of the supplier’s stock.  Some wholesalers will say that they don’t have stocks in hand, but continue to ask for upfront payments.  This could indicate a problem.

When looking for a wholesaler, it is wise to always keep these rules in mind. Be extra careful when you’re applying with a new wholesaler.  Research them thoroughly, and you should be able to tell if they are fraudulent, and avoid suffering for it later.

 

 
 
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