Many people dream of owning their own businesses and one way in which they can do this is by finding a wholesale company that will allow them to make a profit on sales on eBay and Amazon. However, finding a good wholesale company is only part of the equation; you need to do extensive research into your products and make sure that there is demand for the products.

Also, remember that running a business is hard work. You might be able to work at home in your underwear but you will be working long hours and you will need attention to detail and organization, as well as constant research.

Each step of the way you will need to make sure that you are getting the best deal for your money, that you are investing in what people want to buy, whether you are going to get a return custom or not. You will need to research the things that you are buying for your business such as credit card processors and marketing materials.

So you finally come to deciding on a wholesale supplier. The problem is there are many, many companies that are not legitimate. Some estimates suggest that as much as 80 percent of wholesale suppliers are not 100 percent legitimate. Some are not outright scammers but will send you shipments of replicas, or defective goods. Some will send inferior versions of what you have ordered and some will give you a partial order, not what you thought you were going to receive.

There are things that you can do to minimize the chances of you becoming a victim of scammers. Look through these tips and use them to make sure that you aren’t going to lose money over some unscrupulous seller. Remember you will have to do these checks altogether, the fact that one or two of the points check out doesn’t mean they all will.

Investigate Potential Suppliers Carefully!

If they have a website, do a who-is check to find out if they are from where they say they are. Some people have websites that look legitimate but you will find that they are from Nigeria or Ghana, places that are well-known for scams. Just because it appears to be a British or US company, doesn’t mean it genuinely is.

“They Scammed Me!”

This is a common-sense way to tell if a company is not 100 percent legitimate. Put the name of the company into Google or another web browser and add the words “rip off” or “scam”. This is not completely fooled safe because competitors can put negative posts up, but if there are lots of people who have felt like they have been scammed, then this should put a red flag up in your mind. Please remember there are always going to be customers who haven’t got their items as quickly as they would like, so one or two complaints is normal. Listen to your gut when you read these reviews.

Have a Chat

Call someone and talk to them, you will get a feel for the company on the phone. Lots of scam websites will have a fake number or no number at all. You might get someone on the end of the line to say “hello?” and not the company name. This should ring alarm bells for you.

If there is someone there and it all sounds positive, ask some questions that people in the industry should know, then check out their answers. They should know easily as much as you do about their own products!

Physical Addresses

A legitimate company will have a real address. You can put the address in the search engine and see what comes up. Most companies are eager to get into Google Maps, so this can be a great resource for checking the wholesale company out. Make sure that the company is an actual business, not someone operating out of a hotel or bed and breakfast. There should be a proper building with an office or warehouse.

Start Small

Ask the company for small order, to begin with, and go from there. Most wholesale companies know that trust is built over time and so they are fine with smaller orders, although often they do have a minimum. Don’t be persuaded to hand over your money for a bigger order than you really want or need.

Manufacturers

Manufacturers know which distributors and wholesale companies they sell to. Some of them even post them on their websites. You can call the manufacturers and check that the wholesale company does get their stock from them. Please be aware though, most manufacturers won’t actually sell directly to you.

Ask Your Government

You can check the secretary of state’s office. In every state, you can find out who operates there. In the UK you can check with Companies House to see if the business is registered there. If they are in the country they say they are and are registered with the government, then that is a good sign that they are legitimate.