If you make money with the Home-A-Retail business, you know that foreign wholesalers offer products at a cheaper price. You should also know that some of these companies – especially if located in China – may not be legitimate. If you want to import products for your home business, you need to do some initial verification before putting your money at risk.
Google company name and address. Find the results of the discrepancy between the address and phone number and information about fraud or non-delivery of the product. Visit the Alibaba Wholesale Trade Directory listed in the Assets section to see if the company is registered and verified by a credit company. Although verification means they are legitimate, it does not guarantee a successful business transaction – you still have to continue with step two.
If you cannot verify the company in Alibaba, ask for a business registration number or tax identification number. Verify this through a government tax or business registration website in a foreign country. If you need help, visit the Alibaba forum and ask if you would like to verify a company in that particular country.
Arrangement for factory inspection If you do not see one, you may want to consider hiring a company in the same country that will inspect and verify your business.
If you receive a skeptical response to any of the above steps, it is probably safe to assume that even if they are a legitimate company, it is not good to trade with them.