Know the scams.avoid the scams,save a lot of time and money
Where there is business and commerce there are swindlers and hustlers. Learn their tricks to prevent becoming their next victim.
Starting business dealings in China can be difficult and confusing at first. Chinese customs and business practices can seem at complete opposite sides of the pendulum with those of the West and there many mental adjustments to overcome. China, like every other country, has it’s fair share of scam artsists looking to use that confusion to swindle you out large amounts of money. This draws a very unfair and unfortunate shadow on the vast majority of suppliers and factories operating in complete transparency and honesty. Here are some of the more common scams in Shenzhen.
The 30 percent deposit
Shifty companies love to play on misunderstandings of China’s normal business practices. These folks love to meet in Coffee Bars, Lounges, Disco Teks, pretty much anywhere but at their own facilities. After taking you around to see the sites for a few days, they will begin pressuring you for 30% deposit of your expected orders.
While it is common to pay 30% deposit on the first purchase of specialized or custom orders, be watchful of companies that avoid providing you with references, have no tangible business record and play on “Cultural Differences”. Never agree or pay for projected orders, it defies common sense.
Business 2 Business Site
Many innocent victims are swindled everyday on B2B sites. While the majority of businesses operating on B2B sites are trustworthy, legitimate businesses, there are a great deal of predators using the internet’s anonymity to conduct a variety of different scams. Never do business with an online supplier without first properly verifying them and speaking to their references.
The invisible prototype
If you are looking to make special changes to an existing product or create your own, look out for this. Scammers meet and discuss your needed changes or plans over a series of meetings. Before beginning construction of a working prototype, the scammer will begin reciting expeditures and asking for large amounts of money and/or signed business agreements. Don’t sign anything or pay any amount over the pre agreed cost of the prototype until you have something in your hand.
How to avoid the scams
Make an agreement of upfront costs before beginning a project, and stick with it. VERIFY any and all companies you do busines with. Ask for references, and follow up! Shenzhen Purchase Agent provides Factory and Supplier verifications, based on company history and personal visits to ensure you are doing business with a reputable company. If you feel you are or about to be swindled, we offer comprehensive consultation services to get you back on track.