January 18, 2016 by Andrew Minalto - 8 Comments

AVOID SCAMS by using this one little TRICK!

branded-productsOne of the most common topics I write about on this blog is how to properly source and order products from China so that you don’t get scammed or get low quality goods. I have complete guides on the entire order process and supplier verification, I have detailed the top 10 most common scams so you know what to look out for, and I have revealed some extra tips and tricks to make the likelihood of you being scammed practically nil.

But still I receive messages, on pretty much a daily basis, from people worried about this aspect of ordering from China. And that’s completely understandable – after all it’s hard to send a relatively large amount of money to a complete stranger in another country in the assumption that you’ll get what you paid for.

And that’s why today I want to cover another quick strategy that you can use when ordering from a supplier in China (or any other country for that matter, I just say China simply because that’s the best place to buy products 90% of the time) that will significantly reduce the risk of your order going wrong.

Used in conjunction with all my other guides, and dare I say it, it’s practically impossible for you to be scammed!

But actually this method is nothing new, and in fact it’s something I have already written guides on before – just not in relation to scams. What am I talking about? Branding!

Anyone who has bought my Easy Auction Business video course will know how much importance I place on branding. In my mind it is the difference between being one of a hundred sellers with the same product on eBay, and being a truly unique business.

Custom branding is also one of the best decisions you can make in terms of ROI (return on investment), as small additional costs can lead to much higher selling prices and therefore PROFIT!

But that’s not the only reason to do it, as branding can also minimise the risk of you getting scammed or getting bad products when ordering from China. Now I know many of you will now be wondering “how?” and the answer is actually very simple:

Just consider it from the supplier’s viewpoint for a minute.

The normal procedure when ordering from China is to pay 30-50% upfront, before production is started, and then the remaining balance before shipment. So if something goes wrong and there is a disagreement of any kind that leads to the buyer withholding the final payment, then really it’s not a huge disaster for the factory… as they’ve already received 50% of their money, which you’ll never be able to get back. At that point all they need to do is sell off the products and they’ve got the full amount, in many cases even more as they won’t have to offer 50% off to another buyer!

But what happens if those products are custom branded for your company? Well then it’s not such a simple matter at all for the factory to re-sell them, as that would involve removing your branding, which for many products is too time consuming to even be feasible.

And that’s how one simple change can completely alter the incentives of a supplier! Suddenly it is much more important for them to ensure the order is 100% perfect.

Of course this whole idea depends on the products being checked before shipment, and unless you’re willing to spend a few thousand pounds making the trip yourself, then this is where our inspectors come in to play! I’ve already covered factory inspections in detail on this blog, so please just take a look at these articles if you need a refresh: Trip to China – £3000 vs Factory Inspection – £70 & Pre-Shipment Inspections in China.

So for this to work, the order process has to be as follows:

  1. Place your order and pay the deposit/initial payment;
  2. Once the products are ready, arrange a pre-shipment inspection;
  3. If everything looks good in your report, pay the remaining balance;
  4. Wait for your order, safe in the knowledge that you’re going to get what you paid for!

And that’s it! It’s as simple and easy as that.

Of course it goes without saying that branding your products doesn’t mean you can ignore any other aspect of the proper ordering procedure. You 100% still need to follow my guides on everything else, including supplier research and verification, payment methods, samples, slowly increasing your order size etc.!

This is just an added strategy that really does reduce the chance of your order going wrong to an absolute minimum, all while making you MORE money as well – what could be better!?

Until next time.

All the best,
Andrew

8 Comments
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  1. Hi Andrew,
    with alot of backwards and forwards I have managed to get trade assuranse to refund my money for the products purchased. (The high shipping costs which I had to pay again at my end unfortunately not). The company sent me very bad quality products. Is there a platform or a place on alibaba itself that I can warn people from these scammers?
    Thank you for your help.
    Paula

    1. Andrew Minalto

      Good to hear that Paula! 😉

      1. Thank you.
        Is there a platform or a place on alibaba itself that I can warn people from this company? I don’t want anybody to have to go through what I went through.

        Paula

        1. Andrew Minalto

          Not really, no.

          You can post this info on Wholesale Forums for example – then it will get indexed by Google and people who search for that company name will find your story.

          Thanks,
          Andrew

  2. Hi, could you help me.
    I want to ask a scarves supplier in China/India to supply me with specific designs for me to buy and resale.
    Each shipment would be about £200, at first anyway, and quite light in weight.

    I want to know if I can ask them to add my own brand label to their label stating ‘made in. Chins or India.
    I have just read an article you wrote stating branding is a good idea. I hope to ask them to sell certain designs just to me-what kind of additional cost would they charge for this. The items are priced at a low unit cost, and are good quality from the samples I bought.

    I really would appreciate any help you can give.
    Very m any thanks

    PJ

    1. Andrew Minalto

      Yes, you can do that.

      (I already replied to your comment in other post, asking same question).

      Thanks,
      Andrew

  3. Solid advice. I’ve had first hand experience of this. Having my logo done professionally has really helped with my brand and image when talking to suppliers in China.

    1. Andrew Minalto

      Great to hear that! 🙂

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