Dramatic Bogus Wholesale Order for Small Designer

A designer emailed with a wholesaling scam that happened to her. Having an online shop means that random people can contact you all of the time wanting free things aka "a sample" or product as a reduced cost. They sometimes pose as shop owners who'd like to buy some pieces of your line. And if you're new, these first emails are usually exciting. It's common to get people who are "planning" on opening a shop and are feeling the waters. Some are legit business people doing their research, while others are people who want to cheat and pay lower prices for items for themselves, and not to sell to the public.

Here is a scam where the scammer is brazen and risky, and the Scam Target did her homework:

"I had a woman contact me, posing as a buyer. She wanted to place a small order (below my minimum $300) to try out my line in her shop. Her first email asked if I had received her earlier fax and email -- she contacted me in May I think. I said no but she should resend. Usually I'm pretty accommodating and understand small boutiques don't always have a lot of space for a big collection but when she only ordered about 4 pieces (not on a formal order form) and the order set off some red flags for me:

• 1. She wanted them shipped to her home address.
• 2. She never gave me a phone number and said she preferred to use email.
• 3. It wasn't until the third email (after I asked in the first two emails) she told me the name of her shop, where she was located and what she carried.
• 4. She only ordered 4 pieces claiming money was tight at the time. Said she was interested in placing a few small orders and that she was looking forward to a "fun new theme."
• 5. I googled the shop she said she was from (in Illinois somewhere) and the shop seemed pretty big -- similar to her description but not exactly and definitely a store that would have no problem making a $300 minimum.

She didn't contact me for 2 days after I responded to her order suggesting she order a few more pieces to at least create a decent display. Less than 6 pieces, I explained, are hard to sell and look a little funny, even in the smallest store. So, I called the shop and asked for her...No one had heard of her. Then I called information, and called her at home (why is a store owner of a small boutique at home on wednesday at 4 pm?)...she claimed her shop was in St. Louis now and didn't know about another shop by the same name nearby to her in Illinois. She canceled the order quickly and hung up on me!

I called the shop and told them that someone was committing fraud, using their name and posing as a buyer, they called the police and the detective who called me said she kept on telling lies (first she had never heard of me or the shop--then she said she was PLANNING on opening a shop, then she said she had an ebay shop (which doesn't exist). Just before she was busted, she sent me a long email back about how I was an idiot for calling that shop and "what are you, so desperate for buyers that you'd call me at home, especially after me and my husband had suffered a terrible loss in the family this week...etc.etc. -- i loved that part) She just wanted some discounted jewelry I guess.

So lesson here is: If someone doesn't give you their shop's name and a phone number when you ask, don't do biz...email is good for some things but sometimes the phone is easier and better for business. The end."

Another designer offered some advice on how she handles wholesale calls:

• Always ask for a tax id and shop info before sending out a wholesale brochure.
• Google the shop and address to see that it exists plus check out their web site - what shop doesn't have at least a place marker.
• Even if they say they are planning on opening a shop and don't have a tax id then wait until they do. This has fended off a few bogus buyers.
• Trust your gut feelings and make the calls to verify a potential buyer.
• Always get billing info at the time of order.