What is Due Diligence?

Due Diligence is the care we should take before entering into agreement with another person. In the case of doing international trade on the Internet, extraordinary care is essential for, without it, we are about 90% at risk of being defrauded and/or supplied with shoddy goods. You stand a far better chance throwing your money on the Casino table than believing what you see on 90% of the most believable looking internet sites (including on Supplier sites here at Alibaba). Conversely, bona fide Chinese suppliers are beset with bogus Western buyers so the problem is not just a one way street. Nor can we blame Alibaba and other B2B site operators as they receive no funds to check out every member.

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How do I do Due Diligence?

The 12 carefully crafted steps on the following link are a total approach commencing with our own business and marketing planning and ending with landing foreign made goods on our doorstep ...

http://resources.alibaba.com/topic/17476/The_12_Due_Diligence_steps_for_making_money.htm

Each of the 12 steps on that link is a different topic. Please ask your different questions under the relevant existing topic and please do not open new topics about the same matters.For the narrow purpose of this forum, we expand the usual meaning of Due Diligence to include taking a hard look at our own Business and Marketing Plans because 9 out of 10 new businesses go broke in the first 12 months.

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How do I get help to check a particular Supplier?

First, DO NOT BE LAZY ...

http://resources.alibaba.com/topic/18839/STOP_BEING_LAZY_handle_your_own_due_diligence.htm

Second, DO NOT OPEN A NEW TOPIC. Post your query under "Self-check your Chinese (and other) Supplier before ordering", here ...

http://resources.alibaba.com/topic/17492/5_Self_check_your_Chinese_and_other_Supplier_before_ordering.htm

Third, STATE WHAT CHECKS YOU HAVE DONE. Merely asking if Seller XYZ is okay is an invitation to howls of protest. Tell us what you yourself have done to check out your seller and then ask your question. Members are very generous if you are seen to be trying hard. Otherwise, your post will be deleted or you will receive little response if you show you are lazy.

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Why does my Chinese supplier want 30% cash in advance by TT?

Such is very normal practice. And, you won't beat it ...

http://resources.alibaba.com/topic/5782/Why_China_prefers_TTs_.htm?va=0

And, that's one further big reason to take extraordinary care in doing full and proper due diligence before you reach the point of no return.

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What is the most fool proof way to buy goods from China (or India or Indonesia or etc)?

Undoubtedly, it's your own Chinese Helper on the ground in mainland to firstly check out your potential supplier but more particularly to do a pre-shipment inspection of your goods. This should cost only about $200 on say a $5,000 sales order. That's a pittance for the work involved and considering you are working in a den-of-thieves each time you go onto the Internet (because the internet, unlike true ground conditions, is weighted toward scammers). Don't expect sympathy if you join the 1,000s who get scammed each year for failing to hire a good little Chinese Helper.

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How do I find a Chinese Helper in Mainland China?

Go to this link where we are developing a list of Chinese Helpers complete with indicative prices ...

http://resources.alibaba.com/topic/17109/List_of_Chinese_Helpers_verify_source_inspect_and_or_report_.htm

Actual names and contact detail of Helpers is permitted here because Western buyers don't otherwise know how to make contact and in particular because of the essential role of Chinese Helpers in sourcing product, performing factory audits ... and particularly in doing pre-shipment inspections to help stamp out fraud and deliveries of shoddy goods. Help is available in other Asian countries if you enquire on the forum.

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I am a Chinese (or other Asian) Supplier) ... how do I check my Western Buyer?

You are very welcome to post your questions on this link ...

http://resources.alibaba.com/topic/17481/Chinese_Suppliers_how_to_check_your_Western_buyers.htm

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But, I don't write good English?

We understand and we don't mind broken-English. However, please do a spell-check by firstly typing your post into Word or your email program. Correct spelling is a sign of courtesy to your fellow members.

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What if I am a Newbie to International Trade?

Due Diligence is not about learning the basics of international trade. First, go here to learn the meaning of Trade Terms ...

http://resources.alibaba.com/topic/22753/EVERY_TRADE_TERM_FOB_CIF_L_C_etc_.htm

Then, learn more in "Basics of Import-Export" forum, here ...

http://resources.alibaba.com/discussion_board/84/basics_of_import_export.htm

Then, go to other forums such as Documents, Shipping and Payments. But, in particular visit the Fraud forum to get a handle on the extent of the fraud problem, here ... http://resources.alibaba.com/discussion_board/88/fraud_security.htm

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Replying to [Aussie]:

great effort and most helpfull


Mohamad Alkady

Replying to [Aussie]:that will help me

Replying to [Foow]:

These Forums can be the Most Valuable Jewl for any businessmen

Replying to [Aussie]:
good job!

Replying to [Aussie]:
Great information

Replying to [Aussie]:

Can you actually get 2 points just for saying "bump"?

Anyway great job done by you two on this FAQs things, whatever they are I'll go and read them now.

Cheers!

Replying to [Aussie]:You are so helpful, thank you!

Replying to [Aussie]: Thank you so much. I am as new as a newbie can be. I have been running a small home based business and needed to find cheaper supplies to be able to compete. This seems to be a great site (so far) but the whole international trade thing can be a bit daunting. Thanks for this great info on where to start and how to go about it all, I think the task is a little less daunting.

Replying to [Aussie]:
A big hand for you! it really helps

Replying to [Aussie]:

Thank you so much! Great information. Saved me a lot of headache!