If you take the traditional route and engage in retail arbitrage, you are looking at hours of driving around and haggling with local retail store owners.

With that said, getting products from a retail store for an online business is one of the most common ways online sellers use for product sourcing.

And it has its perks.

With retail arbitrage, you can in-person check the quality of products and get them for the lowest possible prices by taking advantage of various sales and in-store discounts. In a nutshell, online retailers buy goods for less at a brick and mortar store and sell it for much more online.

Although retail arbitrage is a common way of running an online business, it is not the only way.

Another very common approach to selling products online is online arbitrage.

It is pretty much like retail arbitrage except that it uses online channels to source products and connect with suppliers.

And that is where product sourcing and supplier discovery platforms come in.

They are online sites that provide businesses with an avenue to find the most suitable supplier for product sourcing.

Some of the most popular supplier discovery and product sourcing websites are ThomasNet, Alibaba, Sourcify, Aliexpress, Alltop, Amazon and eBay.

Finding the right supplier is essential to run a business seamlessly.

If you have an online retailing enterprise, then you need to have an uninterrupted supply of goods to keep it running smoothly.

And that’s only possible if you have a well-suited supplier at your disposal that sells you products at the rate you want and offers timely delivery.

If you fail to partner up with the right supplier, then your business will suffer, and you will most likely not make enough profit.

However, now you don’t have to worry about sourcing products for your business or meeting suppliers, thanks to the product sourcing and supplier discovery platforms.

They give business owners access to an extensive list of vendors and distributors to stock their business without having to go places to look for them.

They are an excellent and convenient way to source products for your business.

However, some such platforms can link you up with scammers, which is always a possibility when engaging in online trade.

So how does one make sure that they are getting in business with a credible dealer that will deliver the goods on time and charge fairly?

Well, here’s how.

How to save yourself from getting scammed on a product sourcing platform like Alibaba?

Although falling prey to fraudulent traders is possible on any website,

Alibaba is infamous for it.

Alibaba is one of the most popular sites in the world of eCommerce, and itself is a notable name.

However, making an account on it to sell products is not a difficult feat.

Anyone can open up an account on Alibaba and claim to be a manufacturer.

If you want to stay safe from such fake companies, then here’s how you can do it.

Engage with Verified Profiles Only

Setting up an unverified account on Alibaba is free.

Therefore, anyone can have a profile and claim to be a seller, but you never know if they really are.

To make sure that you are dealing with a credible business, only pick out verified profiles.

Ask for Samples

Fake traders are always reluctant to send samples before the deal.

It is one of the most obvious telltale signs of a fraudulent company.

You must ask for samples before cracking a contract with a supplier if they refuse to send you one, know that they are not authentic.

Never Pay ‘Additional Charges for Customs’

If a dealer asks you to pay additional money for customs clearance, never do so and call the deal off immediately.

Alibaba operates out of China that doesn’t place a duty on exporting goods.

So, you don’t have to pay any more money in the name of customs.

Many scammers may give you a tracking number for your parcel to make themselves appear authentic, but don’t fall prey to their lies.

It’s all a part of their deception.

Don’t Buy Branded Goods

If you want to provide branded products to your customers, get them from the brand itself or suppliers listed by it.

Never buy branded goods on a product sourcing website because they will not be genuine.

Pay through Western Union

Western Union is a money transfer service that allows you to send money anywhere around the world without a bank account.

Since people can send and receive money directly through western union, it can be used to cover up a number of dodgy schemes.

If a supplier demands you to pay for the goods via western union, know that something fishy is going on.

Always make sure that you deal with traders that ask you to transfer the money to an official company account.

Don’t Transfer money to a Personal Account

Many times scammers can ask you to transfer money to their personal account because their company’s account has some issues.

When that happens, know that the vendor is most likely a fraud, and they don’t have a business.

Save yourself from such scams by not sending money to a personal account.

Final Note

A product sourcing website can have a thousand scammers, the key to escaping them is effective communication, vigilance, and due diligence.

If you want to make sure that you are dealing with legitimate sellers on Alibaba, look for the following.

• Gold Sellers- they need to pay a fee to set up an account, so they can’t be a fraud
• Certification
• On-site verification from Alibaba
• Live factory/storage house video
• Supplier assessment
• Satisfactory history

Even though Alibaba is more infamous for having fraudulent sellers, it is not the only website to have them.

Other supplier discovery portals can also have fake profiles. The best way to avoid them anywhere is to engage with verified accounts only to get products for your business.