China is the land of pandas, the Great Wall, and…scammy electronics manufacturers? It may seem like it, but Chinese companies have been excellent partners for many U.S. businesses. As we enter the peak season for electronics sales, it’s important to know how to avoid getting scammed by electronic chops in china. Go digital or go home! Electronic gadgets are a hot seller this holiday season, with shoppers snapping up everything from smart TVs and streaming media players to wireless headphones, virtual-reality headsets, and smart speakers. New technologies are changing the way we shop, eat, work and play in all sorts of ways that you might not expect — or even recognize.
What are some of the most common scams?
It’s important to know that not all Chinese companies are scammers. Many are honest, reliable partners. However, suppliers who have gotten a bad reputation for unethical practices have given Chinese manufacturers a bad name. Here are a few of the most common scams you might encounter, and tips for avoiding them. Fake Samples: To get your attention, scammers might send you a sample product that looks great, but is actually a cheap product they made in their garage. That’s why you should always ask for samples before you commit to a Chinese supplier, and test those samples thoroughly. Sellers who are legitimate will understand why you need to test the product — and will be happy to send you a sample. Scammers will ignore your request for a sample, and keep pestering you with promises of getting the real product to you as fast as possible. Fake Customer Reviews: If you are looking for a Chinese manufacturer, one way to find a reputable supplier is to check out the reviews on third-party websites, like Alibaba. But how do you know those reviews are authentic and not just positive reviews planted by the company? One way to uncover fake reviews is by noticing a pattern in the language used in the reviews. Scammers commonly reuse the same stock phrases in their positive reviews on different business websites. Also, scammers often create fake websites that appear to be third-party review sites. If you see a website that has glowing reviews for a large number of Chinese manufacturers, be skeptical.
How to avoid getting scammed
The best way to avoid getting scammed is to always be vigilant when dealing with Chinese suppliers. Always keep the following in mind when doing business with Chinese companies. Trust, but verify – If you find a Chinese supplier that you like, and who can meet your needs, be sure to research them thoroughly. Avoid suppliers with a checkered past, and only work with reputable companies that have positive reviews from other businesses. Never pay upfront – If a Chinese supplier asks you to pay them upfront, don’t do it. Paying a Chinese supplier before they have shipped your product could be a huge mistake. If a Chinese supplier asks you to pay upfront, walk away. Ask for samples – Any Chinese supplier worth working with will be willing and happy to send you samples of their products for testing. A Chinese supplier who refuses to send you a sample likely has something to hide. Check everything before paying – Before you pay a Chinese supplier, make sure you have thoroughly inspected their product. You can either send somebody to the supplier’s location to check the product in person or ask for a product inspection report. If the supplier doesn’t let you inspect the product, there’s a good chance that they’re scamming you.
Caveat: Be ultra-clear when negotiating
As in any relationship, communication is key when doing business with a Chinese supplier. The more clearly you can define your needs, the better. Make sure you have a clear contract and checklist of specifications, as well as samples of any logos or designs that might be printed on the products you’re ordering. This will allow you to make sure the products you receive meet your standards and will help you avoid those difficult “He said, she said” situations if problems arise. Always remember: The Chinese have a different approach to business than we do in the West. They are generally not as upfront or direct in their communication styles, and they will almost always employ some kind of soft-sell approach when negotiating with you. Be prepared for this, and know that it doesn’t necessarily mean they are trying to pull a fast one on you. It’s just the way business is done in China.
Don’t pay upfront
Any Chinese supplier who asks you to pay them upfront is almost certainly a scammer. While some legitimate Chinese suppliers may request payment before the product is shipped, they will have a very good reason for doing so, and they will be upfront with you about it. For example, a supplier may ask you to pay them before they ship if they need to put down a large deposit for raw materials, or if they need to hire employees in advance for extra production shifts. In these cases, the supplier is likely trying to protect you from getting scammed, too. They may be saving you from having to pay for an order that never arrives by asking for payment upfront.
Ask for samples
Any Chinese supplier who is worth working with will be happy to send you samples of their products for testing. A Chinese supplier who refuses to send you a sample likely has something to hide. Be wary of suppliers who do not send you samples of the product you’ve ordered. If you are ordering a custom product, like printed Circuit Boards, samples are critical. It’s important to make sure the samples match your precise specifications. If a supplier’s samples don’t match your expectations, walk away. It’s better to lose the business than to live with low-quality products that may damage your reputation.
Check everything before paying
Before you pay a Chinese supplier, make sure you have thoroughly inspected their product. You can either send somebody to the supplier’s location to check the product in person or ask for a product inspection report. If the supplier refuses to let you inspect their product, or if they don’t provide you with an inspection report, there’s a good chance that they’re scamming you. But don’t just inspect the product you’ve received. Be sure to check the shipping documents, too. If the shipping documents appear to be incorrect or fraudulent, or if the shipping company is bogus, you might be dealing with a scammer.
Bottom line
The best way to avoid getting scammed is to be vigilant and thorough in your research and to be clear and direct in your communication with your suppliers. China is an amazing country, full of hard-working, creative people. It’s just important to approach your business dealings there with a healthy amount of skepticism. if you want help related to chops please contact Moore Advisors.
