Guide to Safe Trading Online in 2021
“Helping Global Buyers and Suppliers to Do Business Smartly!”
The term “Trading” is referred as an energetic style of engaging in the financial markets that aim to outperform the conventional buy-and-hold investing. Instead of seeking profit from significant market trends, traders opt for short-term price moves to benefit from the rising and falling of the markets.
As a trader, to thrive in the business market, you need to change your approach and consider trading as a business to earn more profits. For running a well-established trading business, a strategic plan is demanded that focuses on your trading and your business. A well-written business plan for your business requires long- and short-term goals, the amount of capital you have to run the business and how will you set-up your office.
Guide for Safe Trading
There are plenty of methods you can adapt in reaching out to the probable partners on the internet. Some of these guides can help you in understanding your partners and can lessen the risk of your business being involved in any fraud or misunderstandings between the partners.
1) Get Contact Details:
Doing business online can always be risky. Therefore, it is vital for a partner to get the right address, phone number, and email address. It is essential to confirm if the contact detail of your partner are correct and the address he provided is from the same company or not. If a trader is not providing the accurate information, for example, his business address is from the United States and his contact number is from another country, it is advised to trace the address and locate the number from the directory and call on the number to confirm if the trader works there or not. Such scams are pretty typical during the online trading.
2) Check your Partner’s Background:
Checking out the background of your partner is very important. Background checks from alternative third-party sources include credit reports and legal registration. In most of the countries, the reality of the company registered and legal status is kept on a public record. It is recommended to check the background of the company of your partner’s making sure that it is registered legally and has no issues with documentation.
3) Interact with your Partner Face-to-Face:
Whether or not possible, it is crucial to meet your partner in person and visit their organization to check the facilities. Even though internet provides ample amount of information about the partner you’re trading and helps you in making critical decisions regarding the business. With all the facilities, it is still recommended to visit your partner in person.
4) Ask For Samples:
Before starting any trading, ask for samples to check if the quality matches with your requirement. This may help you understand the quality your trading partner provides, enabling you to decide to trade with them or not. Also, whether or not you are satisfied with the product quality.
5) Payment Risks as Seller:
If you are a seller who has not been actively trading with your partner, it is essential for you to stop selling your products to your trading partner on an open account. If you are planning to sell your products to the buyer, ask them to open a letter of credit to get your business to run smoothly.
Safe Import and Export Guide
Most of the products placed on B2B websites are either manufactured or traded in from the Chinese market. While a majority of the products are of decent quality, they do not comply with the standards business markets in Europe, Australia and America have sent. Regarding that, importing products which don’t match the quality requirements of these markets is considered as an illegal act and may cause punishment with hefty fines in case of someone getting injured.
How to Know If the Supplier is Right for You
There are many B2B websites on which the supplier information is insufficient. This creates difficulty in choosing the right supplier. In response to that, the supplier section should have a customer feedback on a large scale. The feedback from customers who bought from the same suppliers you are planning to buy will help you out in choosing the right one. Positive response is a good sign that supplier is delivering the right products of decent quality; however, adverse feedbacks will also allow having a balanced impression on your targeted supplier.
Price Research and Sample
There is a possibility of buying the products directly online without a supplier, but there is a better chance if you negotiate on your terms with the supplier. The most common mistakes importers usually make are that they don’t care about the quality they get when importing goods and services. To ensure that you are getting the right quality of the product, have a meeting with your supplier and reach out to an understanding that you won’t be able to buy the product if the quality requirements are not matched by the standards you have set. Purchasing a low-quality product and paying a full price for it may seem like a bad idea and while you may get the product, your customer’s won’t like it.
Important Points to Ponder
- Always review the positive and negative feedback of the supplier through which you are importing your product.
- Make a list of suppliers and prioritize them accordingly for trading as per your needs and requirements.
- Always remember to compare the prices of the products from one supplier to others.
- Make sure that you agree on the right price with your supplier, and it is on the same product that you wish to buy.
- Always order samples before purchasing the product.
Common Fraudulent Techniques
The most common fraudulent technique, phishing, is an effort in which the fraudsters try to get your details. This type of effort is done through email, which asks you to click on a link that takes you to a page designed to capture your data and details. These fraudulent emails are also designed to make you download malicious software which contains viruses.
The most common procedure of delivering the information in and out and later receiving it from the ordinary people, spam is famous for the diffusion of pornography, unsolicited messages and advertising addresses and links which could be found easily on social networking sites, personal blogs, and organizational websites.
How to Suspect a Fraudulent Partner
- Always make sure if the company you are trading with is registered or not.
- Always make sure if you had transacted with the trading company before or did the offer come unsolicited.
- Are the contact details like phone numbers and addresses are matching the same country or not.
Trading companies which are not fraud will be available to cater to your needs and requirements and provide much information regarding the product or the company. Their customer support will be active to assess your needs.
Always check if any other organizations have reported an incident of fraud regarding the company you are trading with or the person or not.
Above mentioned guidelines are necessary for safe trading online in 2021 all across the world. It is essential to look out for any fraudulent importers or exporters and always make sure that the product you are buying is matching the quality standards or not. Scamming has become quite common in the B2B market. Therefore, it is vital to have knowledge in hand about trading online.