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Vetting Brand Name Amazon Suppliers: How To Know If Your Supplier Is A Scam!


Vetting Brand Name Amazon Suppliers: How To Know If Your Supplier Is A Scam!
Vetting Brand Name Amazon Suppliers: How To Know If Your Supplier Is A Scam!

Ensuring the legitimacy and reliability of your Brand Name Amazon Supplier is crucial for building a successful ecommerce business. Before diving into a partnership with a supplier for your Amazon wholesale business, a thorough supplier vetting process can save you from costly pitfalls that could end up costing you time, money, and even your Amazon selling privileges. In this guide to vetting brand name Amazon Suppliers, we'll walk you through the key considerations and steps to vetting brand name Amazon suppliers effectively.


You'll want to take your potential brand name Amazon suppliers through a 3 step vetting process. When vetting brand name Amazon suppliers, negative answers to any of the questions below are not necessarily deal breakers but they should weigh in your decision making process.


Initial Review

1. Website Evaluation

Before opening an account, conduct a high-level review of the supplier's website:

  • Professionalism: Does the website exude professionalism?

  • Brands Showcase: Are the brands they carry prominently displayed?

  • Customer Focus: Do they discuss their customer base and engagement beyond online retailers?

  • Industry Relationships: Do they highlight relationships with manufacturers and brands?

  • Business Duration: Does the website mention how long the supplier has been in business?

  • Contact Information: Is there a listed address and phone number on the website?

2. Online Reputation Check

Explore the supplier's online reputation:

  • Reviews: Check for online reviews, both positive and negative on websites like Facebook, Trustpilot, Google, and online Amazon Seller Groups (like those Amazon Seller Groups on Facebook and Reddit).

  • Google Search: Google the supplier's name or your sales rep's name along with terms like "Reviews," "Scam," or "BBB" to see if there are negative results.

  • Social Media Presence: Verify their activity on social media platforms to see if they are active and professional and to see how long they have been in business and posting online.

  • Trade Associations: Check if they are members of reputable trade associations or attend industry trade shows.

  • Business History: Determine how long their business name has been incorporated or listed on Google.

  • LinkedIn Presence: Check for team members listed on LinkedIn.

  • Authorized Distributor Status: Verify if they are listed as an authorized distributor on brand websites. TIP: Call the brand and ay your are a retailer looking for a distributor in the state where your supplier is located to see if the brand recommends the suppliers you're working with.

3. Location Analysis

Examine the supplier's location details:

  • Address Verification: When you search their address in Google Maps, is it a legitimate warehouse/office or a potentially questionable location like a residential address, PO Box, or virtual address? When you search their address, are there other businesses that come up in the results that might be related and how are those potentially related businesses reputations online?

  • Phone Interaction: What happens when you call their phone number?

  • Geographical Alignment: Does your sales rep is based in the same state/country as the supplier?

Working Feel

As you start to work with the supplier, evaluate the working dynamics to see if they act professionally:

  • Documentation Requirements: Do they request an EIN and reseller's permit?

  • Account Application: Is there a formal application process to open an account?

  • Catalog Quality: Assess the quality of their catalogs and product lists.

  • Communication Channels: Do they primarily use official channels like email or listed phone numbers rather than social media platforms?

  • Product Alignment: Are they consistent in recommending products matching their website portfolio?

  • Payment Transparency: Watch for pressure tactics regarding payment, fees, returns, and refunds.

  • Invoice Impact: Do they claim their invoices will assist in ungating or do they say they do not guarantee their invoices will work for ungating?

Test Order

When you're ready to proceed, consider these tips for a test order:

  • Order Size: Start with the minimum order amount, regardless of the deal's attractiveness.

  • Order Limit: Avoid initial orders exceeding $5k unless confident in the supplier's legitimacy. TIP: If they have a minimum order over $5k, tell your sales rep your company policy will not let you do first order over $5k but that you promise to do larger orders after your initial test order is delivered.

  • Payment Method: Prioritize credit card or PayPal payments, even with added fees, and refrain from using cash or money orders.

  • Shipping Considerations: Think about inspecting the first order's quality by having it shipped to a third-party logistics provider or your home before sending it to Amazon FBA.

  • Professionalism: Maintain professionalism, knowledge, and ease of collaboration throughout the process.


By following this comprehensive process for vetting brand name Amazon suppliers, you can build a solid foundation for a successful and trustworthy partnership with your supplier and decrease overall risk for your business.


BONUS: Join the ALGO Program to see our communities list of known scam and low quality suppliers HERE.


 

Are you ready to learn the right way to sell on Amazon the same way 10,000+ other Amazon Sellers have? JOIN THE NEXT FREE ALGO ONLINE TRAINING HERE!

 


1 Comment


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Mar 04

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