I Have been Scammed on Alibaba: What Should I Do?

Introduction

It was not long ago when I faced a scam on Alibaba. I talked to a supplier, and we agreed on the terms of 100 pieces of socks. When it came to sample testing, the deal was perfect. But in the final shipment, I felt something fishy. 20 pieces out of 100 have massive defects. Seventy had minor defects. It was a scam case that led to a dispute.

There is a long history of scammers stealing money from the buyers.

So, is there any way to move from such cases? Well, you can be safer with the correct payments and contract deals. In this guide, we will discuss the Alibaba scams and help you get out of them. Also, get some tips for your safety from our experts.

 

1. Common Types of Scams on Alibaba

Buy from Alibaba with extreme care. You might encounter scams at every step. Here are a few common types of scams to keep under your radar!

1) Non-delivery

Most fakers hit under the shipping covers. You discuss the project openly. Get samples and even rely on such suppliers.

Once it comes to production and procurement, they fail. Suppliers don’t ship products and vanish away suddenly. Tracking the suppliers would help; otherwise, you might lose your bucks.

2) Ghost shipping

One of the very well-planned scams with genius minds is ghost shipping. Supplier promises the delivery. Generate fake tracking IDs to lure you.

When you try to track the orders, the following issues erupt automatically:

• Tracking is not possible. Either the tracking code is wrong, or it is unavailable.
• Your tracking status is stuck. It happens due to no shipping.

3) Intellectual Property Theft

Selling a branded product without official brand permission is wrong. You can’t do that until you are an impersonator. It is another type of scam in which the seller sells the copyrighted products.

Unauthorized product selling can raise several questions when you resell it on Amazon.

4) Bait and Switch

Offering luring prices and catching the buyers is a lovely trick scammers use. For example, they will show off the new products in the market. Bait you with the meager prices.

But when you visit them to purchase the product, here are a few scenarios that occur:

• The product is short in stock. So you can buy it at a higher cost.
• The product isn’t available. You can go for the expensive alternatives.

If the product is necessary, you might try to purchase it at a higher price. That is how the scammers steal your money.

5) Substitution of materials

The same product isn’t available. Please get a new one with the matching specs.

Once you receive such responses from your suppliers, run away. Probably, they are scammers. Products sometimes don’t match their specifications.

Suppose you have done a contract of 100 pieces of earbuds. The sound quality is good upon testing the samples. You’ve settled for the specifications, too. However, once the products arrive, the quality is low. They don’t meet their agreed features.

6) Price Increase After Orders

Have you ever experienced the increasing costs once you’ve ordered? An authentic seller won’t do it. However, scammers have invented a secret hack to scam buyers. They offer $1 per piece of socks when you uncover the products.

Once you order them, the prices increase without prior agreement or notice. The result?

You have to pay for the increased costs. You wasted your money on a bunch of fake orders.

7) Partial shipment

Some scammers are very clever. They want to win the confidence of their buyers. If you order a small amount of products, they will ship it. Once you go for the bulk production, they ship only 20-25% of the products.

If you ask about the remaining products, they will demand higher prices. Sometimes, they don’t even ship the products to your location.

8) Quality Fade

It is one of the trickiest scams— decreasing quality. First, fake suppliers don’t reduce the quality of the products.

Once you place successive orders, they will reduce the quality of the product. Such a scam takes time and ensures long-term scam planning. So, change the supplier or choose another option.

9) Customs and Tax scams

Customs and taxes are technical things. Most foreign buyers ignore it. Why?

Because it consumes various documents and serious legal issues regarding the products, reliance on the supplier can be another challenging phenomenon. Some suppliers try to scam you with the increasing costs of customs and taxes.

For example, if the import duties are 5% of your products, they will ask you to pay 10% or sometimes more.

10) Fake Certificates

Fake logos. Fake Certificates. Sometimes, showing off fake quality inspection reports creates a big hurdle for the users. Most times, you don’t verify the certificates.

Presenting such fake certificates can win your confidence and get you scammed. So, think before you jump into such scams.

 

2. Document everything you and the supplier

Have you been scammed? Specify your type of scam as above to proceed in your case. It is pretty effortless if you take the right approach to all your scam cases.

Let’s deep dive into the documentation processes and eliminate scam issues.

1) Why documentation matters?

For a moment, you might ask: why create a hassle to collect documents?

Well, it is worth your time for the following reasons!!

● Proof of Agreement

Documents keep a record of your discussion with the buyer. It shows you have made a mutual agreement and completed the deal.

● Dispute Resolution

Do you want to resolve your issues? Whether Alibaba or any other platform, you have to provide concrete evidence. Nothing is better than the documented proofs showing your truthfulness.

● Legal Protection

Not just Alibaba needs all the records; local authorities also need them. You can print out your chats, sign up for legal agreements, and get your case resolved with effective tactics.

● Accountability

Documents set A to Z records of your necessary points. Supplier and buyer are both accountable in such a case.

● Transparency

There will be no more confusion between the buyer and sellers if you follow the terms. It irons out the challenges and brings out the best output of your project.

2) What evidence to gather?

Don’t miss a single document at any cost when grabbing the evidence. Even a message and chat have a great significance in the resolution.

Do you want to see the detailed documents you might get? These are:

● Emails

How have you communicated with your suppliers? If the communication source was Gmail, get our chat printed. Mention the source, and don’t leave a single message missed.

● Payments

Have you paid the supplier any amount? Get the invoice and keep a hard and soft copy to avoid confusion.

● Messages

What is your primary source of negotiations? If you have used Alibaba, go into the conversation. Save your messages safely and provide them whenever needed.

● Contracts

Any deal that occurs between two parties is often a contract. It can be either in a soft format or a legal document. Contracts describe the terms and conditions and highlight the deal for the buyers.

● Shipping documents

Have you shipped a part of the products? You can get a copy of your tracking information and bill of lading. It can be a decisive proof for your deal and make your case uncomplicated.

3) Make all evidence logical and easy to understand.

Having hundreds of necessary documents to prove your case right is sometimes true. But don’t create a mess with a bunch of papers.

Instead, make your cases logical with the following tips.

• Organize your documents.Think of a case and organize your documents. Arrange the documents into different types. For example, chats must be in other sections compared to agreements. Moreover, robust evidence should be kept at the top.
• Create filenames. Naming your files makes it easy to collect. So, keep a definite name that is easy to procure.
• Highlight key information. Get a highlighter and sort out the necessary information. It will empower your documents and draw attention to the central points.
• Retain soft copies. Don’t forget to keep copies of your documents. Create a PDF or retain the images. Place all your records safely in a different folder.

3. Contact the supplier

Grab all your documents and set them aside. Give suppliers a chance to prove the point. It can be a simple resolution if the supplier agrees.

Here is what you can do about this.

1) Contact the supplier to get a refund.

Which platform does your supplier belong to? If it is Alibaba, you can talk to your supplier. Discuss the issue and say you want to cancel the order. If you’ve paid through the Alibaba Escrow System, it is straightforward.

Submit a refund request. The supplier will check the request and approve it. If you are not using Alibaba; what should you do?

Don’t worry; it is not a hard nut. Give your bank account or any other payment option to the supplier. The supplier will send the money back to your account.

Is it even difficult?

2) Explain your case firmly yet politely.

Don’t be too harsh when discussing the case. Talk to your supplier directly and confirm your cases.

Let me give you an example for better understanding.

Suppose you have set an AQL of 3%. That means 3 out of 100 products can have minor to major defects. Now, you have received products with 50 items having major defects. It is a clear-cut scam.

Here is how you can discuss this case with your suppliers.

Make videos of the defective products. Explain thoroughly the issue of defective items. Inspect all your products. Set up reporting.

Finally, we request a resolution for all such cases in a polite manner.

3) Ask to talk with a high-level manager directly.

Are you working with a supplier company? That is even easier if you know the manager. All you have to do is to get all your documents and submit them to the manager directly. Explain the case of scam type and discuss the resolution.

Set realistic expectations, such as a partial or a full refund. Sometimes, suppliers can offer product revisions.

 

4. Open a Dispute on Alibaba

Doesn’t your supplier agree to the refund? Let’s proceed with the dispute creation if you are working on Alibaba.

1) Contact Alibaba customer support.

First, talk to customer support and ask for the dispute creation. The straightforward way to create the dispute is:

• Login to your account.
• Move to your order section.
• Click on the open dispute.
  

2) Provide all documentation to support your claim.

Now is the time to show off your documents and win the case. Alibaba’s support team works to resolve all the cases by obtaining necessary documents from both sides.

Here is what you should submit.

• Complete the dispute form. Submit the reason behind the dispute. Specify the nature of the scam.
• Upload the necessary documents supporting your case. For example, you can upload all the screenshots of your chat. Upload shipping documents, contracts, and all other necessary info.
• Summarize your cases and provide a brief intro as to why you are submitting them.

3) Keep following the status.

Once you have submitted your case, don’t go away. Instead, trace the status of your dispute and go for a quick resolution. If the supplier responds to your request, you can reply.

Monitor your cases until the resolution.

 

5. Explore other options

Try your best to get a refund. But sometimes, it becomes necessary to go into legal matters and look for alternatives.

Let’s discuss the other aspects that are your savior.

1) If the Alibaba dispute fails, look into alternatives.

Has Alibaba failed to fix your issue? Well, there are many other ways to solve this. Take a look at the following points:

• Talk to the supplier and dissolve the matter internally.
• Take matters legally and look for legal help from the experts.
• Resubmit your cases for the second go-through and ask customer support to take a second look. You can explain your case in detail and get a fast inference.
  

2) Contact your bank/credit card company for chargeback.

One of the simplest ways to get your money back is to contact the service provider. It can either be your bank or credit card company that has sheltered you.

Here is how to apply for the chargeback and get your money back.

• Get all your proofs, invoices, and documents.
• Request the bank to apply the chargeback.
• Check the status of your request and monitor whether you have got your money back or not.

3) Ask for help from your Chinese friends or other suppliers.

Do you have a friend located in China? Then, it is a great aspect. Do you know why? Because you can contact the suppliers through local support.

Provide your friend with A to Z information about the supplier. Now, make an extra step. Your friend will use internal and local resources like the Chamber of Commerce. He will explore the local suppliers directory and help you locate the factory.

Once you have the details, talking to them and resolving the matter is far easier. You can highlight the aspect of your business and tell why you want a refund. Moreover, demand for a revision for all your defective products if possible.

4) Get advice from a lawyer.

Do all other tactics fail? Well, you still have another way to resolve your problem. It is grabbing legal advice and visiting the legal premises for your case.

• Hire a top lawyer in China and highlight your case. Provide all the necessary documents for the legal proceedings.
• Uncover the mediation services in China to hammer out the headache.
• Use the local arbitration services in China to sort out a better solution for your case.

That is how you can straighten out entangled pathways.

 

6. What should you not do after a scam?

Suppose you have been scammed. What is next? What should you do after the scam? Well, it is straightforward. Don’t believe anyone. Don’t fall trap to lower pricing.

We have compiled detailed tips to keep you booming and happy.

1) Don’t settle more payments.

Fakers are walking encyclopedias about the trapping tactics. Here are some situations in which they can ask you for more payments.

• Your products are on the way. For customs clearance, you need to submit more payments. For customs duties, you have to submit the additional payments.
• I can’t ship products before you make the full payment for your products.
• Products have arrived in your country. You need to submit more payments for delivery to your doorstep.

Most often, shipping cases include more demands on money. You try to save some bucks on shipping. But scammers snatch your savings. Pin them down and abandon the trading completely. Even create a dispute to be safe and get a refund if the supplier asks for payment more than the agreement.

2) Don’t trust them anymore.

A scammer can never get on the right path!!

There might be 1% of scammers who get on the right path. So, you can’t correct them. Try every possible way to win your case and get a refund.

Blocklist all the scammers. Pledge never to trade with them in the future. I even recommend that others to avoid such suppliers to keep scams out of your list.

3) Don’t cancel the dispute before getting a refund.

Have you created a dispute on Alibaba? Here is a new trick that can distract you.

Supplier promises to revise the products or give a full refund. In return, he requests to withdraw your refund request.

Stay away. Stay safe. I repeat!

The supplier will run away once you opt out of the dispute and cancel it. Don’t be a fool and get a refund. Speak clearly with the supplier about the refund.

Once the supplier refunds the amount, close your request.

 

7. How to Prevent Future Scams?

Next time, don’t make the mistake and catch the scammers first. Here are a few tips to dig up the scams.

1) Remember the common red flags.

Eye the red flags and beware of the scammers. The common red flags for the scams include:

• Extremely low costs.
• Unverified suppliers on Alibaba.
• The supplier is requesting payments directly from its bank account.
• No location of the factory.
• puts a lot of pressure on you to make quick decisions.
• Poor communication and lack of following the terms and conditions of the contracts.
  

When these signs appear, don’t look back. Run as fast as you can.

2) Verify suppliers.

Want a fair deal? Talk to suppliers honestly. Set up realistic terms and conditions for the suppliers.

On Alibaba, apply the verification filter where all the verified suppliers appear on your screen. If you use Globalsources or other supplier’s directories, you can apply the same filters. You also have an opportunity for Gold suppliers on Alibaba, too.

If you have an external supplier from Google or other platforms, make it effortless by picking the authentic suppliers in the following ways.

• Get the factory address of the supplier.
• Ask for the real-time video of the factory to ensure the supplier has a factory.
• Conduct online research and get the certificates. Remember to verify the certificates from the authorities.
• Communicate and settle for the easy terms and conditions.

Verify your suppliers and believe in them.

3) Be wary of too-good-to-be-true deals.

Some scammers lure you with low costs. For example, if the market cost of socks is $1/piece, the supplier offers you an unbelievable cost of $0.3/piece. Don’t rush. It can be a possible scam. Try the safe sourcing of socks.

So, how do you filter out such cases? It is simple.

• Research the actual cost of the product. Go to Amazon and Alibaba. Check the retail and wholesale prices to confirm the deal’s authenticity.
• If the supplier offers the lower costs, ask the reason.
• Set strict quality terms. Warn of serious consequences if the quality is low.

Hire the inspection teams and check product quality before and after production.

4) Secure payments

Payment scams are rising day by day. It is due to your negligence. Some secure payment options include:

• Alibaba Escrow Payments
• PayPal
• Credit Cards

Avoid direct bank transfers. Scammers can immediately block you and get the money. However, you can pay through the credit cards and get a chargeback. Similarly, PayPal offers good payment security.

Use the Alibaba Trade Assurance for better security.

5) Work with a 3rd party company.

The best way to trade? Involve the Sourcing Agents. These are local companies that know the market very well.

There are many benefits of working with sourcing agents.

• Reliable Trading. Thereis almost zero chance of scams. Even if scams occur, sourcing agents are responsible for compensating for your loss.
• Competitive rates. Sourcing agents dive into the market and evaluate the conditions. They dig up the top suppliers and compare their costs. Finally, they land a factorythat offers lower prices without compromising the quality. That makes you get the best out of your efforts.
• Best quality. Most sourcing agents tackle the quality concerns. They get samples and get them in their labs. Confirm the highest quality and nurture with top-class deals.
• Warehousing and Shipping services. Treat your sourcing agents as special points. JustChinaIt offers warehousingand shipping

Conclusion

Before we conclude with the endpoints, here is the recap of safety points:

• Don’t be blind when trading with the suppliers. First, verify them.
• Assess The quality of their products.
• Pay through the secure payment options only.
• Work with the sourcing agents to avoid any scamming cases.

Need additional safety? Hire the JustChinaIt Fraud protection service. Filter out the scammers from your list. Work only with the top suppliers and be content with your shopping experience on B2B platforms. Check it out now!