China pitfalls

 

Did you know that the recession is over? Apparently it ended back in June of 2009.  According to The National Bureau of Economic Research the longest and deepest down turn for the American economy has finally subsided. Well that really is a relief however it does not erase the damage that has been done. The cold hard reality is that many business owners are still struggling to stay afloat, many cutting corners that they never dreamed of cutting before.

 

Wholesale suppliers are in desperate need of rock bottom prices, going straight to the manufacturer is the only choice for most. The only sure way to secure prices that will allow them to turn a profit when supplying their own customers. So where do most look for seemingly unbeatable prices? The great land of China.

 

Sourcing from China has always had it’s pitfalls but lately the pits are getting much bigger. There is a noticeable wave of scamming taking place. It is a clear and direct action by some to take advantage of an already bad situation within the states. With that said we should also clarify that there are countless suppliers in China who are absolute professionals engaging in highly ethical and fortuitous relations with their clients from the west.  The trick is locating the good suppliers and avoiding the bad.

 

Do a simple search regarding scams in China on Google and you will be presented with a never ending supply of content. It can be very difficult to make an informed judgment when you have no clue as to what is fact or fiction related to this topic. The best course of action is to make good common sense decisions. We will discuss what may be the most important one here today, specifically “method of payment”.

 

The problem with dealing with companies in China or anywhere overseas is that you have little recourse when you have been duped. Who can you call? Where can you go to get help? Your options are extremely limited and in some cases non existent. The most important choice you can make when dealing with these companies is avoiding certain methods of payment. Never send a wire transfer, once the money is sent it is gone forever period. Instead use services that will allow you to fight back should the need arise. Pay using your business credit card, American Express is known for its ruthless protection of its clients. Most major credit cards will offer you some type of recourse to resolve any issues that may arise. You can also pay through Escrow; many companies are set up to assist you with this and can be found easily online. They will handle the transaction and assure all goes well. You may even be able to utilize PayPal however not all vendors may accept this method of payment.

 

Once you have paid and items purchased have arrived you will have a whole new set of potential problems, poor quality with a noticeable difference from approved sample (you did request a sample first?  let’s hope so.) Inaccurate quantities or items that have been seized by customs, this list of obstacles can be quite frightening.  Good luck as you will need it, at least you will have the payment issue covered.

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