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What are the classic ways first-time importers get scammed or burned?

Watch for prices that undercut the whole market, demands for 100% advance payment off-platform, and 'golden sample' switches where a great sample is followed by a mediocre bulk run. Keep deposits at 30% with balance on inspection, insist on Trade Assurance or an escrow-style payment on your first few orders, and never let a supplier move you off Alibaba/IndiaMART chat into WhatsApp before you've built trust.

Go deeper

3 resources, 1 India-specific, 3 link-checked.

📄 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

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
📖 Book
✓ Link checked Paid Intermediate

The classic account of how factory relationships quietly degrade after the first good batch, essential mental preparation before you trust a new supplier with real volume.

Poorly Made in China: An Insider's Account of the Tactics Behind China's Production Game

From goodreads.com by Paul Midler

  • Introduces 'quality fade', the slow, deliberate cheapening after approval
  • Explains why great samples don't guarantee great bulk runs
  • Argues for an active, present quality-control relationship
Open goodreads.com

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