Guide
How to vet a supplier before you send money
7 min read · updated
Vet a supplier by confirming their business exists in public records, requesting a written quote and a paid sample, checking that the payment method offers buyer recourse, and comparing their answers against two other suppliers in the same category. Refuse irreversible payment methods on a first order.
Confirm the business is real
Search the company name in the relevant business register, check how long the domain has existed, and look for a consistent trading name across their email domain, invoices and bank details. A mismatch between company name and payee name is a reason to stop.
Payment terms to accept and refuse
On a first order, use a method with dispute recourse. Irreversible transfers to a personal account are the most common way new resellers lose money.
- Acceptable first order: card, or a platform that holds funds in escrow
- Acceptable at scale, after a track record: bank transfer to a company account
- Refuse: cryptocurrency, gift cards, personal payment apps, transfers to individuals
Warning signs
Any single sign below is a reason to slow down. Two or more is a reason to walk away.
- Pressure to decide immediately or pay before quoting
- Refusal to sell a sample at any price
- Prices far under market with no explanation of the source of stock
- No written specification, or a quote that changes after you agree