Biggest Scams to Avoid When Expanding to International Shipping
When it comes to expanding your trading business, there are several scams you could fall victim to if you are not careful. Here are the most common scams and what you can do to avoid them.
Imposter freight companies
Not every forwarding agent is legitimate. Hoaxer is all over the internet, posing as more well-respected freight companies when they’re looking to steal your money.
Whenever you are looking for an agent to work with, make sure You have to scrutinize all the candidates thoroughly to make sure they are reliable.
How to avoid this scam: There are few steps you can know about to determine whether a forwarding agent is a sanction:
- Always check the company’s URL to know that it is a well-known freight company or on a free web domain. Real companies mostly have their own domain.
- Always read through the site and find stolen content from other sites.
- Always check the company logo. If it is low-quality, chances are the company is meant to scam people.
- Do some research to make sure the company you’re looking for is the right one for business?
Fraudulent returns are becoming more problems these days, and now it’s affecting retailers. This may not happen often, but it is important to keep your policies in place to make sure your return process works.
How to avoid this scam: Return process becomes more complicated when you expand international shipping. Always create a “return policy” that puts your customers first and lowers the risk of fraud.
One of the biggest and common scams is a fake address. They will use a fake international address to fraud with you. If you ignore this, you could face charges of fraud for shipping to a fake address.
See if your user enters a shipping address and then asks you to send the product to another address in another country. It could be a scam.
How to avoid this scam: Check every international address to make sure it is legal or not. If you have any doubt, ask your customer. Most of the time, your customers are trustworthy people who want to give your products a try.
Counterfeit customs fees charges:
International buyers are often required to pay a customs fee to the country in which they live. As a seller, you may not be affected by this, but your customers might suffer from counterfeit customs fees. Trouble arises when a scammer pays a customs fee through PayPal, Venom, or money order.
The most common way to report customs fees is to receive a notice from the customs office in the country you are entering. If you are asked to pay the customs fee online, you will go to the official website of the customs office.
How to avoid this scam: While this scam may not directly affect your company, you may have customer complaints with them if you order your product. It is best to have a notice on your website informing your customers how and when they will pay the customs fee. Whenever you have a user in a country you don’t usually send, make sure the user is familiar with that country’s policies.
Denying Bill of Lading:
Some counterfeit cargo companies will do business in a way that seems normal, even if your goods are not loaded at the port. Then, the scammers will refuse to give you the Bill of Leading (BOL), which is an important document proving that the goods have been received. Without BOL, no one will be able to claim shipment to the destination port.
To obtain a BOL, you will be asked to pay a certain amount to the scammer or report the risk of losing your shipment altogether. Trusted freight companies will provide you BOL at no extra charge.
How to avoid this scam: Counterfeit freight companies often offer to ship your goods at meager rates. Don’t be tempted by this “bargaining”; then, you will be involved inexpensive fees. Before you decide on a freight forwarder, make a reasonable estimate of the cost of your shipment. That way, you won’t be caught in a scam.