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Due dilligence

Discussion in 'Dropshipping & Wholesale Hookups' started by Nick1, Sep 3, 2012.

  1. Nick1

    Nick1 Junior Member

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    How do you do your due diligence when dealing with sites like Alibaba, recycleme, tradekey who deals with a lot of overseas people?

    I was thinking more about trading in commodities like scrap metal.

    Thanks BHW
     
  2. TheViceroy

    TheViceroy BANNED BANNED

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    Its quite a challenge when using sites like Alibaba, as most people end up using Western Union and the feedback process on those sites is a little different than usual.

    Heres what I usually do
    - Make sure that the user has been around for a while
    - Ask myself if the transaction makes sense. If the seller is in China, they shouldn't be telling me to send WU to Nigeria
    - Start with a small order
    - Google the person's username. Sometimes people will post complaints about them in outside forums.

    Overall, I find the best way is to start with a small order and work up from there. It isn't fool proof, but it'll weed out many of the scammers and minimize your losses.
     
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  3. LeMerovigian

    LeMerovigian BANNED BANNED

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    You can also hire a middleman to do research for you and even a translator also someone to go look at there physical address confirm contact numbers shop ( If dealing with China, I have a reference) although China is vast most product come from Honk Kong. If you're dealing with real money or looking for a long term commitment I wouldn't rule this out. Don't get reeled in by starting off small and growing comfortable with larger orders always order in batches you can afford to lose even if your supplier if legitimate things do happen in the shipping process. Also faux sellers will deliver the first few time and get you on the large order, which is something people are never weary on they believe they'll get taken on the first nickel & dime purchase.
     
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  4. antboy

    antboy Newbie

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    This is exactly what i do.
     
  5. Qoolqi

    Qoolqi Newbie

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    There's a site called wholesaleforums with uk extension (I believe I can't post a link), I wouldn't go through them to use their dropshippers which the forum is geared towards but
    there are numerous very detailed threads dealing with how to qualify a wholesaler and make sure they are legit, in lieu of actually visiting the company. I'd do above anyway to make sure it's even worth my time to visit.

    This is quite involved, will take time and some capital (If paying a visit) but would definitely reduce your risks.

    Personally, I can qualify any company in Taiwan for anyone wishing to get supply from there. As in pay a visit to the company on your behalf and do a report on what you want to buy. I'm also looking at exporting goods to Taiwan/China from my own country.

    Other than that, good luck with the middlemen in Hong Kong and highly competitive pricing on ebay, which the middlemen sell on too.
     
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