When sourcing apparel from overseas, there are several potential scams to be aware of. Knowing these can help businesses avoid financial loss and maintain their reputations. Here’s a list of common scams and ways to avoid them:
1. Bait and Switch: Suppliers may send you a high-quality sample but deliver a bulk order that is of significantly lesser quality.
Solution: Selai’s on-field team conducts random inspections of goods during the production process to protect the buyers from any deception or fraud.
2. Upfront Payment Frauds: Some suppliers might insist on a large upfront payment and then disappear.
Solution: Selai ensures both the buyer’s and manufacturer’s payment safety. Selai ensures buyers can make incremental payments based on project milestones.
3. Fake Companies: Some “companies” are just a website with no actual operations.
Solution: Selai does all the screening for you. Selai’s team visits them in person, checks compliance certifications, and checks references and reviews before enlisting them on the platform.
4. No Delivery After Payment: After receiving payment, the supplier does not ship the goods.
Solution: Selai works with only reputable suppliers on the ground ensuring every product is delivered to the apparel stores after order.
5. Misrepresentation of Location: Some suppliers pretend to be in one country (like claiming they’re in Japan for quality appeal) but are actually in another.
Solution: Selai will conduct an initial screening for you by visiting the factory in person to ensure no such fraud can take place.
6. Intellectual Property (IP) Theft: Sharing your designs can lead to them being copied and sold to other buyers.
Solution: Selai signs Non-Disclosure Agreements (NDAs) with their partners before onboarding them. Our on-site representative teams ensure no such malpractices take place in the premises during or after the production.
7. Overbilling on Shipping and Other Hidden Costs: Some suppliers might inflate shipping costs or add hidden fees.
Solution: Selai has an experienced team working with you to ensure all the information is there whenever you are placing an order so that there is no scope for any such fraud.
8. Fake Product Certifications: Suppliers might claim that their products meet certain standards or certifications, but they might be lying.
Solution: Selai’s expert team always verifies the authenticity of any certification presented.
9. Changing Bank Account Details: Scammers might send an email that appears to be from your supplier, asking you to send payment to a different bank account.
Solution: Always confirm any bank account changes directly with Selai.
10. Substitute Materials: Instead of the material agreed upon, suppliers might use a cheaper alternative.
Solution: Time to time quality checks from Selai’s team ensures this can never take place in the factory.
Stay Updated, the nature of scams evolves. Stay updated on the latest types of scams in the apparel industry through Selai. By staying informed and vigilant, businesses can significantly reduce the risks associated with sourcing apparel from overseas.