Amazon FBA: How to Identify Non-Trustworthy Suppliers

There is a lot involved in starting your own Amazon Fulfillment By Amazon (FBA) business. If you have already conducted your product research and know what you want to sell on your Amazon FBA page: Congratulations! That is one of the hardest parts of getting started. There is, however, still a lot to do. Now that you have decided what to sell, you need to figure out how to get it.

Finding a supplier can be tricky. You need to keep return on investment (ROI) in mind so that you can negotiate a price that will leave you plenty of room to make money. In addition, you need to make sure that your supplier is legitimate. If you are worried that you might be negotiating with a not-so-trustworthy supplier, here is Nine University's quick guide to help you know for sure. You can also find a video about it here.

Alibaba Phishing Scams

Alibaba is a commonly used supplier. Unfortunately, there are scam companies out there that will pose as Alibaba via email. You should pay attention to emails from Alibaba to make sure that they are legitimate.

The first thing that you should watch out for are emails that are trying to grab your attention such as those with a subject like “URGENT” or “YOUR ACCOUNT NEEDS ATTENTION”. These do not always indicate spam, but it is more than likely the case. You should also be wary of generic introductions such as “Dear sir,...” or “Dear ma’am,...”. Alibaba will always address you by the name which you used when creating your account. After this scare tactic, whoever is actually sending the email will usually try to ask for personal information. Needless to say, you should not give it to them.

How to Identify Supplier Scams When Purchasing Products for Your Amazon FBA Business

Trademarked Items
It might seem like a no-brainer, but if a supplier is trying to sell trademarked items, it can be a problem. A few years ago, there was a boom of knockoff production in China. Internally (within China), this was not a big deal. But after they began exporting fake products overseas, a lot of legal trouble followed. Trademarked items from China are usually fake and should definitely be avoided.

Bait and Switch
Another common scam can be spotted by looking at the price that the supplier is offering. If the items are substantially cheaper and the price seems too good to be true, it probably is. Some companies will show lower prices to first-time buyers in order to obtain their business, only to increase the price dramatically once a rapport has been established.

No Secure Payment Methods
If you find a supplier that does not offer a secure payment method, it is without a doubt a scam. Companies that do this are likely trying to take your money and may not have any intention of sending you the product that you order. They will also have access to do so in the future once you have given them your personal information.

Project Nine University

If you want to be on the top of your game when it comes to spotting non-trustworthy suppliers, click the link at the top of the page for an in-depth video. You should also check out Project Nine University. They have all sorts of great tips and tricks for starting an Amazon FBA business. Being an Amazon FBA seller can be a great opportunity to make passive income from home. With the right guidance and a strong plan, you could even quit your nine-to-five, and Nine University would love to help!

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Disclaimer: We do not guarantee that you will achieve results or earn any money using the information we provide. Like any business venture, hard work and effort are required. The successes shown are not typical, and are self reported. You should not expect to achieve similar results. In fact, most clients make little to no money. Use caution and always consult your accountant, lawyer or professional advisor before making any decision concerning your business, investment or finances.