Full Question
I would like to place an order to buy computers and smart phones from Chinese suppliers. Many of them have sent me their price list but not a single one is willing to use an Escrow company - all of them require a payment in advance and I'm concerned. Do you know why they are not willing to use an escrow company? The prices of their new branded products look very good but they refuse to use a third party, and I'm concerned that they may not deliver the purchased products. Any suggestions will be greatly appreciated. Thank you

Answer
The situation you describe above doesn’t sound very safe. To be fair, escrow isn’t very popular among sellers in China, especially when it comes to small orders. But if you really want to protect yourself, you should be doing due diligence on the vendors (for example, are they verified suppliers on a reputable directory like www.GlobalSources.com?) and insisting on 3rd party inspection. Be sure to link performance to payment. Meaning that you don’t make the final payment until goods are confirmed to be what you ordered.

If you are looking for famous brand name computers and smart phones, you are most likely wasting your time and falling into a trap. Here is a link that explains the details: Genuine products from China?

Here are some more resources for general reference.

Video 1: Finding Suppliers
Video 2: Evaluating Suppliers
Video 3: Negotiations
Video 4: Project Management and Quality Control
Video 6: Leveraging Global Sources
Video 8: Avoiding Scams

Small Buyers’ Strategies: Video Tutorials