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How do I avoid getting scammed by a supplier?

Treat three things as hard red flags: prices dramatically below market, a demand for 100% advance with no escrow or milestones, and pressure to move payment off-platform or onto a personal account. Legitimate factories have a verifiable address, a GST number, a landline, and are comfortable with 30% deposit / 70% on inspection. Keep every conversation on the platform's messaging so you have a record, and start small.

Go deeper

3 resources, 2 India-specific, 3 link-checked.

📄 Article
✓ Link checked India Free Beginner

Fraud advice straight from the platform most Indian founders source on, naming the exact red flags: too-good pricing, off-platform payment pressure, no GST/verifiable address, and 100% advance demands.

Don't Get Scammed: Red Flags for Online Buyers on B2B Platforms

From corporate.indiamart.com by IndiaMART

  • Prices 40-50% below market are a scam signal
  • Never pay off-platform or 100% in advance
  • Demand GST, MSME and a verifiable physical address
  • Start small and keep transactions on-platform
Open corporate.indiamart.com →
📄 Article
✓ Link checked Free Intermediate

A catalogue of the specific cons that trip up product founders, the golden-sample switch, fake certifications, price bait-and-switch, and traders posing as factories, with concrete defences for each.

Common Supplier Scams and How to Avoid Sourcing Fraud

From cosmosourcing.com by Cosmo Sourcing

  • The golden-sample trick: great sample, poor bulk run
  • Certifications can be forged, verify at source
  • Watch for price bait-and-switch after commitment
  • Independent inspection before final payment
Open cosmosourcing.com →
📄 Article
✓ Link checked India Free Beginner

A practical, India-grounded checklist for turning an IndiaMART search into a vetted supplier, verify GST, sample first, avoid full prepay, start with a pilot order, from someone who buys this way.

How to Identify Good Suppliers on IndiaMART

From dhanshikaexports.com by Dhanshika Exports

  • Define needs and MOQ before searching
  • Visit the office/factory to confirm legitimacy
  • Prefer 30% advance, balance after delivery
  • Start with a pilot order, then scale
Open dhanshikaexports.com →

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