Regular visitors to the Sourcing Allies blog will know that we have largely focused on how to prevent disasters while importing manufactured goods from China in past pieces.
But what happens when disaster takes place? When you have paid a Chinese factory for your order, the order has been shipped, there is a hole in your inventory that is waiting to be filled with the new consignment, your customers have been told new stock is on the way, and then the products arrive but they are total rubbish. They do not meet your quality specifications and you just cannot put them out for sale.
What do you do?
Your first reaction may (understandably) be panic. A number of thoughts might cross your mind… such as:
- It is possible that I have been scammed?
- Can I send the products back?
- How do I get my money back?
- How do I get good replacement products quickly?
Before you proceed, however, you need to establish how exactly the consignment falls short of your quality standards. Poor quality could mean any or all of the following:
- The dimensions are out of the acceptable specifications.
- Wrong or inferior quality raw material has been used.
- The finishing is shoddy.
- The packaging is sub-standard.
- Damaged goods.
- Wrong quantity.
The first may be fixable depending on the dimension (too small holes can be drilled larger etc).
While the second is impossible to fix, the last four can be put right with a little effort.
In this blog, we will discuss your likely options. Your course of action depends on a number of scenarios of your purchase, each of which throws up its own challenges. These are the three main scenarios:
Scenario 1: This was a one-time buy via e-commerce giant Alibaba, another trading company, or direct from the Chinese factory.
Likely outcome: You are the most exposed in this scenario. The outcome ranges from “impossible to get a refund” to “slim chance that you might get a refund” to “let’s just write this off”.
This is the most common scenario. When you receive your consignment and find it is defective, the seller usually stops responding to your requests for replacements or refunds. If this happens, the likelihood of resolving this to your satisfaction depends on who the seller is. If the seller is a genuine company, you may still have a remote chance of getting your money back if you are willing to put in the money and time. But if the seller was actually a scamster, it will be quite impossible to track them down, and you would be better off writing off your losses.
Silver lining? As we mentioned in a previous blog, some e-commerce companies offer a service for buyers and sellers that is similar to an escrow service. Alibaba, for instance, says its “Trade Assurance” service adds an extra layer of security for buyers dealing with Chinese suppliers. It promises a refund if:
- Your shipment is delayed, beyond the promised date.
- Your product does not meet predetermined quality standards.
If you had engaged a reliable sourcing agent (such as Sourcing Allies) to manage your sourcing from China project, you have a better chance at resolution because at least a dialogue can take place. Ideally, your sourcing agent is in your own country which increases your odds of resolving any issue you may have.
