We do not accept payments from Escrow because it is a third party paying organisation, and frankly, not as safe as Western Union or Banks.
We do accept Letter Of Credit but only for larger amount of export value because charges by banks for L/C are high and many paper work for both parties (buyer and seller) to draw up as well. And of course always the risk of "discrepancy" if either party does not submit the right documents etc. Bank also charge for "amending" L/C so it is very troublesome if the amount is not substantial enough to cover all these costs. These days, profit margins are so low that all the profit can be "wipe out" when we accept payment via L/C. That is why we insists upon L/C only for higher value export orders.
We would like to recommend all buyers/customers new to international trade to always adopt a fool-proof method. We realised both parties (buyers/sellers) main aim is for security payment so we can make it a win-win situation following these steps:~
(1) Aim to always establish a good friendship from
the company you deal with. Be they buyers/
sellers - all parties play an important part for
long term mutually beneficial business.
(2) Do not hesitate to ask for business reference
i.e. company name, contact number and person
from a new supplier/seller that you want to buy
from. A reliable supplier/seller would not
hesitate to disclose these informations to their
potential customers.
For our part, we usually volunteer these infos
to our potential customers even without their
asking :-) Eg. if our customer is from USA
we will provide him/her with our USA clients
biz reference. If they are from another country
we will provide biz reference of our clients within
their country or even neighbouring country.
Quite frankly, any biz reference is better than
no reference and it is important that buyer
maximise the informations given to them by
actually calling up these references to check
up on the companies they are going to be
sending their money to !
(3) If a supplier/seller does hesitate to provide the
potential customer/buyer with business
reference - it is seriously not very advisable
to proceed negotiation further with this party.
Better safe than sorry!
In our line of business, because we provide sourcing & export drop shipments to our customers worldwide, we make sure that we keep up with the development/trends of the industry.
We do make it a point to know the factories/manufacturers that we do business with very well. And so long as you know their goals is the same as yours and your customers, you can be a better consultant to your customers.
We have been blessed with very good friendship with both our factories and buyers/customers for many years and continue to experience the same success rate of partnership through Alibaba.com
Best regards,
Teo Wee Zh
International Trade Manager
Quoting from [PA AUDIO]:Quoting from [tradetiger719]:
Hi guys. These days I have been searching serious sellers over the net. Sadly, there are half of them ask me to use Western Union. (Yes, scammers) There are other 50% only accept using T/T payment. I am just curious why sellers do not accept L/C or escrow? Are they all scammers? Is it really secure to use T/T payment to pay some one oversea?
Thank you very much. =) Wish this post can help other buyers too. =)
As a supplier for PA Speakers, I know the reasons. Following is
First, it is more safe for seller because there are so many scammers around the world.
Second, the amount is too small. It is expensive to use L/C or escrow.
Third, many small trading company, and factory also can export products directly. But they can't accept the L/C because their company is too samll. It is very complex for them to accept the L/C.
B&RGS
Terry
Supplier. PA Audio. China
yes, you are right, you are just saying what i want to say, thanks, we, the small one cannot use the L/C not because we don't want to, but it's too complicated and expensive
yes, i agree with Terry too
i am a supplier on Laptop accessory such as adapter and battery
we do TT with most of my client, in initial order , they are very careful too
so they put very small order first, then go to large slowly, when they find that we are
very reputation they will think the TT is very securtiy and efficient way
L/C , escrew is safty , every body know that, but it make things complicated and take longtime time and expensive,
One of my client pay me by Paypal, the money stuck on my paypal account becouse it is only $140, withdraw from paypal request minimum amount $150.00, it is crasy, so even my goods was received by this client for over one month, but my money is still on paypal account
if he agree to use TT , no this problem happen
Hi guys,
I am new to the trading and I still don't understand all the terms.
Could someone explain to me, what means "
I also agree to Terry's and Angie's opinions. Their opinions are representative of many sellers'. Holp buyers understand sellers' difficulty on accepting L/C and support the cooperation between two sides.
We are a special underwear & lingerie manufacturer located in Guangzhou, China. Our payment terms also is T/T or L/C at sight. We have exported many products to different countries and areas by these payment terms. T/T is better for small value purchase orders.
Quoting from [tradetiger719]:
Hi guys. These days I have been searching serious sellers over the net. Sadly, there are half of them ask me to use Western Union. (Yes, scammers) There are other 50% only accept using T/T payment. I am just curious why sellers do not accept L/C or escrow? Are they all scammers? Is it really secure to use T/T payment to pay some one oversea?
Thank you very much. =) Wish this post can help other buyers too. =)
GUYS PLEASE PAY ATTENTION TO THIS!!!
I have been trading and importing on alibaba for last 6 years!!!
1. with all due respect to all honest people firstly trading is not going to store and buying pair of shoes and honestly you shouldn't get invalved in something that you don't know or have slightest clue about it!!!
2. LC is a safest way of trading??? no it's not LC at sight for example does not guarantee that you will receive what you have ordered/specifyed in the LC by the underwriter from the bank or issuing authority it only guarantees that you will receive the goods but what and how condition they will be its a different ballgame alltogether..........
3. how the * do you expect some small exporter or small factory to accept the LC for some small Qty. order??? it will cost them more money to collect the paymeny and clear the LC since most of the small companies use exporting agencies in china so go figure why they won't accept the LC???
4. escrow, unfortunatelly many westerners have used and abused the beauty of fair and honest trade by using tools such as escrow etc... what is the guarantee that you won't refuse the payment based on blah blah this and that???
Does any of you new comers big shots trader wannabees know that $300 USD in china is great deal of money for small trader/manufacturer??? so go figure if someone orders $1000 plus worth of samples or "big qty. on the way" purchases and it never ever comes back???
5. my advise to all of you trying to sc a buck, get a freebie, big business on the way....... etc... please at least take some business cl at least or try to learn some basic rules and regulations in international trading or just give it up and pay for them thing $100 bucks more at your local store but at least have some respect for hard working professionals that are strugling nowdays cuz of all this "big orders n the near future" or "we need to evaluate samples first" is just making our life misery and difficult to conduct business!!!
It is really a shame, my dad always used to tell me: son never do your oil change take it to a jiffi lube there are people that do that for a living why do you wanna waste entire day on a stupid oil change they can doit for you in a 15 min. you will be more productive by doing what you are good at instead of trying to save $19.95 and wasting a whole day!!!
Once again I apologize if this might have sounded harsh or rude but that's the way it has been for last 100+ or whatever years since people have invented trading.
so if you don't know what you doing than don't doit!!! plain and simple!!!!
and another thing, I have never heard of someone cheating someone out few bucks if they are legitimate company in china!!!
chinese people are pretty fair and honest people when it comes down to business, all I can say it's that there have been millions of happy dollars traded betveen me and chinese supplyers/manufacturers and all I can say it's 110% satisfaction!!!
good luck to all of you!
Best regards,
Damir
Usually ,our company just accept T/T for payment .The reason is it is the secure way for our small company and very easy way .Our company is small and specialising in hoel saw ,alloy rims ,wood flat bits and something like taht of hand tools ,cutting tools ,.The items are small ,and the price is little ,so usually the order is not so big .If choose L/C it will cost a lot ,and our small manufacture can not afford such large cost ,and perfer to T/T.
But we are sure to be very honest to our customers ,like whether the products are our s or not ,usually we will tell the truth .And we also hope the customers can be honest to us .To sure our security ,we have no choice but choose T/T .
Hi all,
Recently, i have been scam by a indonesia ppl,
DUN TrUST THEM,THEY will CHEAT YOU!
And i have a duel with a US company called "Technovations Inc"
Now i'm still waiting for the reply, they have not send me any shipping
information yet, i don't know what to DO!
HELP!!!!!!!!!!!!!!!!!!!!!!!!!
naiX
Singapore
Why the Seller don't accept the escrow?
Because buyer can stop the payment at any moment by appeal to Escrow.
So the seller is afraid that when they have delivered goods,and suppose that that buyer is a scammer,(I mean suppose that) may be that scammer will appeal to Escrow for stop payment and cheat the goods.
So the seller dno't accept the escrow.
And for point of buyer,they also are afraid that when they have paid,the scammer seller(suppose) maybe disappear from the world.
So, at the beginning of business,especially at first deal, trust each other is very difficult thing to do.
SO THE L/C maybe the best choice for earlier business.When the Trust have building between Buyer and Sell,they can choice T/T or other payment way
Just for you reference.