In this serious economic down turn, the buyers must be extremely cautious when ordering goods and products directly from the suppliers in China due to increased concerns over possible scam practices in China’s export industry. Here are some important tips.
1. Always do some comprehensive researches on the background of potential suppliers in China. This may be difficult to do, but you must do. You may request trade references from their existing customers in America. You may also contact local chamber of commerce in the city where the supplier is located to validate their business nature and credit history.
2. If you order is large enough, you may want to have a trip to China before finalizing the order to meet the supplier(s) in person and to see their manufacturing facilities.
3. Make sure to have all specifications included in the sales agreement, the more detailed the better. Also make sure to state "no substitute materials and styles allowed" in the agreement.
4. Try to use "letter of credit" as the form of payment. It is the fairest transaction method for both seller and buyer. Both parties are financially protected if they are determined to fulfill respective obligations as set forth in the sales agreement.
5. Stop and think again when you see a quote containing prices that are too low to believe. Most scam businesses tend to use extremely low prices to attract buyers or more accurately, the deposits.
6. When comparing the quotes you received, make sure to compare apple to apple. Suppliers in China like to use some vague pricing and delivery terms in their quotes so they can impose hidden charges, or in a plainer language - increase your costs, later.
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Jonathan Wang
Amlink International Corp



