Recently there has been an influx of fraudulent wholesalers and dubious bulk discount stores on the net. This article concentrates on how to detect such companies and what necessary checks must be carried out before investing in any business venture.
To detect whether the wholesaler or the company, being dealt with is genuine or not, these checks must be considered.
– A professionally designed website with a good layout is not an indicator that the business is genuine. A lot of wholesalers do not have great looking sites but are registered and authentic businesses. Never EVER get convinced by the design of the site.
– Ensure that the wholesaler accepts payments via credit/debit cards and other online payment methods like paypal, nochex etc. If the company ask you to wire (BACS) money directly into their account then avoid trading with them as most definitely they are scamming you. Card payments in most cases can be easily traced and charged back whereas with money transfers, once the funds have left your account, they are gone forever.
– Try to talk to a representative of the company on the phone, it is always nice to talk to...