Safety Tips For B2b Marketplaces

Thanks to globalization, countries are able to trade between themselves with little obstacles. With the increasing importance of the internet for doing business, B2B marketplaces are becoming an important business platform. Unfortunately, there has also been an increase in fraud.

The following tips could save your company some important financial loss.

1. Verify the Contact details of your potential business partner

Always confirm if the address, phone number and email address given to you by your trading partner belongs to the same company. If a trader provides inconsistent contact details, for example an address in the USA and phone number from another country, we recommend you look up the address in the local phone directory and call this number to confirm that the person you are in touch with actually works for the company.

2. Check company background information

Ordering a simple credit report can save your company a lot of headaches. These reports cost between $70.00 USD to $300.00USD and gives you the legal and financial history of any given company. With this information, you can decide if you want to proceed with business transactions.

3. Ask as many technical questions as possible

Ask various technical questions such as certificate of origin, quality standards, warranty and detailed questions about your products. This will quickly differentiate a good partner from a bad one.

4. Research the market value

Search what the market price of your product and be suspicious of any deal that is too good to be true.

5. Meet your potential business partner face to face

After doing all verifications suggested in point 1 and 2, try to meeet your business partner in person and visit his company's facilities. While the internet offers you a wealth of information on your potential partner which enables you to make an initial assessment, there is no substitute for face-to-face contact. In doubt, contact the local embassy or consulate for help, guidance and tips in order to better plan your trip.

6. Be cautious when ordering or providing Samples

If you are a buyer, make sure to request a sample before confirming your order. This will allow you to see if it meets your requirements and quality standards. If you are a seller, make sure to request payment for any samples especially products that have a high resale value.

7. Order pre-shipment inspection services

As a buyer, you can avoid products that do not meet your requirements by ordering these services.

8. Protect Yourself Against advanced Payment Risk

When you are a buyer and you enter into a contract, it is normal for the seller to request partial payment before shipping the order. Avoid all payments with services like Western Union as it is extremely hard to identify the owner of the account receiving the payment. A safer option would be a letter of credit.

9. Be aware of high risk countries

Be especially careful when you are dealing with regions with high fraud incident such as Eastern Europe and Africa.