The number one problem with E-Commerce today is trust, or lack of it. This problem has dogged the industry from day one. The fact of the matter is that people like to deal with people, sending your personal information or credit card details through a tangle of wires can be worrying for even seasoned online buyers.
Part of the worry is the anonymity that a website provides. And while scammers and schemers hide behind websites legitimate businesses have people operating them. The key to putting the trust back into your online business, whether you have an e-store or trade on online auctions is to bring the people behind the site into the equation.
There are a number of tools to help businesspeople make better decisions when deciding who to deal with online. None of these cost over $10, a small price to pay for your piece of mind. To begin with there are some simple steps that you can take to ensure that you have done your due diligence.
Action Steps
The best contacts and resources to help you get it done
Get Some Contact Details
Look at the contact details of the website. The Contact Us link is usually at the very top or the very bottom of the homepage. The page should include at the very least: a) A Physical Address b) A Postal Address c) A Phone Number d) An email address. Businesses that do not have one of the above warrant further investigation. Businesses that do not have ANY of the above should not be dealt with. Regardless of the details they provide you should always double check.
I recommend: Letting your fingers do the walking. Pick up your copy of The Yellow Pages, if you've misplaced it or the business is out of state try
Yellow Pages online. Make sure the contact details on the website match the details in the Yellow Pages.
Finding Out About Newer Businesses
If they're not in the Yellow Pages it could mean a that they're a new business and unfortunately newer businesses are harder to verify. However there are tools out there that can help.
I recommend: Network Solutions and their
Whois search. Here you can enter a domain name to find the administrator, IP Address, Web Site Status and even get a shortcut to Yahoo search results. This is a great free tool.
If you want to pay a measly $8 you can get a credit check and business registration report from
Experian. You can do a preliminary search which will give you the basic business details. $8 will get you some key facts including number of years in business, bankruptcies and agent name and location.
Finding Out About Established Businesses
There are a plethora of tools online for finding out about businesses that have been around the block a few times. The best of which is below.
I recommend: The Better Business Bureau which gives comprehensive information including an overall company trust rating. The lowest rating is an F, which means that “the company has failed to respond to complaints, their advertising is grossly misleading or the company's industry is known for its fraudulent business practices.” The highest ranking is AAA which is exemplary. According to The Better Business Bureau any company with a CCC rating or higher can be expected to provide “a satisfactory business transaction.”
Tips & Tactics
Helpful advice for making the most of this Guide
- Once you've established who the company is it's time to make contact. The Internet has normalized emailing to the point where some people are over dependent on it. However, the best way to verify an identity or business short of jumping on a plane to conduct a site visit is to pick up the phone and give them a call.
- The first tip off you're dealing with a non-entity is if the business person doesn't sound professional when answering the phone. For example, they will answer with a plain 'Yes?' or 'Hello?', without identifying themselves or the business name.
- If you're dealing with a supplier: You can start to worry if the supplier doesn't request your business license or sales tax ID during the initial contacts. Most true suppliers will require one of these. A Tax ID is only necessary for US sellers who wish to buy from US suppliers. If you live outside of the US, you will not need a Tax ID. OR
The supplier gets shifty when you request a product sample. Most product suppliers are only to happy to offer a sample of their product (usually at a higher price) so if they do not offer this be careful and question their reasons for not offering one.
- You can also be rightly suspicious if the business claims to take a secure form of payment (credit card or Paypal) but later turns around and says they only accept wire transfer or Western Union. Not all businesses that take Western Union and wire transfer are scammers, but this is the most common way scammers operate and you should always steer on the side of caution if you are asked to pay via these methods when not having dealt with the person first.
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