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How to Identify a Legitimate Online Retailer


You've done your homework.  You found the item you want to buy.  You've researched prices on the internet and you are now ready to commit the dollars with an online retailer.

If it's a big name outfit like Sears, Home Depot or others, go for it.  However, more often than not the retailer you have found is someone you never heard of.  Most all of them are legitimate, but occasionally you can run into a scam artist whose very professional looking website will disappear completely from the internet within a few weeks and magically re-appear under a different name.  You're left with a product you would like to return because it wasn't what you ordered, or received no delivery at all.  So, you call your credit card company or bank, tell them you can't find the vendor and you think you've been scammed.  They eventually may credit your account, but you find in this case, they have not done so.  When you inquire why, you find out the retailer you purchased the item from has provided proof of delivery to you.

From that point it becomes a battle of patience.  But there are ways to make sure you are dealing with a legitimate firm and avoid the hassle of trying to get your money back.  Here are some very simple things to look for that are quick and easy and will steer you clear of scammers.

But, before we begin, did you know that the internet continues to be the safest way to transact a credit card transaction?  Yes, that is true.  In fact, you are far more likely to have your card number stolen at a restaurant or walk-in retailer than by making a transaction online.  That's not wishful thinking, that is a fact, confirmed yearly by credit card companies and internet security experts.  Internet credit card processing is very secure.  The fact that a credit card number is stolen and used online to purchase products is not an indication your card number was stolen the last time you did an internet transaction.  More often than not, it is a result of a transaction in a restaurant, hotel or other establishment where you physically handed your card to a person.  Unfortunately, that type of transaction accounts for the majority of credit card number thefts.  So, when online and you see the padlock icon in the corner of your browser locked, feel confident that you are conducting a secure transaction.  If the padlock is not locked when it comes time to enter your card number, STOP and discontinue the purchase.  You are not on a secure site.

But, let's get back to validating your online retailer and whether they are legitimate.

Do they have a mailing address or location posted on their website? 
As crazy as it sounds, you would be surprised at how many retailers never want you to know where they are, especially scam artists.   If they don't post an address on their site, you have no address to return the merchandise to.  And, contrary to popular belief, there is no requirement to post a return address on the shipping label.  If they don't have an address on their website, there will be no return address on the shipping label when you receive your order.  That's the only guarantee you will receive from these people, let alone returning your order for a "guaranteed" refund.

Do they have a phone number posted on their site?
No address, no phone calls, no bothersome inquiries as to your order status, or where to send your order for a refund.  Because, as it turns out the item received isn't as advertised, but a cheap imitation or substitute.  Again, look for a phone number.  Call it and verify there is a person on the other end.  Better yet, is the phone number toll-free such as an 800, 888, 866 number?  Most legitimate retailers provide a toll-free contact number.  More importantly, a toll-free number usually means an order can be placed by phone if you prefer.  If you can't reach them by phone, steer clear.

Do they have an email address posted on their site so you can contact them?
I know by now you are probably laughing.  No address, no phone number and no email address.  Are you kidding?  Who would do business with them?  That's like buying a stereo out of the back of an SUV from some guy in the parking lot at the mall.  You will be surprised at how many companies have absolutely no contact method, other than to place an order online.  Yet, most people never do a simple check to see if they can get hold of the company before they place their order.

These are some of the obvious things to look for.  If you can't find this information on their website, don't buy anything from them.  It may very well spell nothing but trouble.  Now, having said all that, there are no doubt legitimate retailers who don't post any contact information.  But, if they are a legitimate business why are they so inclined to hide who they are and how to get hold of them?  Could it be if you contacted the local Chamber of Commerce in the city they are located you would get less than a glowing report about them?  Maybe not.  But why risk it if they provide no means to verify who they are let alone find out where your order is at?

Here are some less obvious ways to discern the legitimate from the potential problem retailers.

Is the only way to contact this vendor using a contact email form?
You found a page that says "Contact Us" and there are some blank lines where you can enter your email address and your inquiry.  If you are not a customer but want information about an item you want to buy, you may get a response.  If you are a customer and want information about your order, good luck getting a response.  But, if you get a response in your in box with more information so you can make your purchase decision, you now have an email address.  But, don't let that fool you.  A week or two later that email address may no longer be valid.  You see, the scam artists rotate email addresses on those contact forms frequently.  What you think is a valid contact, may only be legitimate for a few days.  So, it's back to the form to find out when your order is shipping.  And, it should come as no surprise they don't have the common courtesy to respond to your inquiry, because they now have your money. 

Boiler-room Internet Scams
And, the reason they aren't interested in hearing from you after they sold the product?  They are nothing but a product farm or today's equivalent of a boiler-room telephone sales operation. 
They have very little if any of a product description for the item advertised.  It's signified by thousands of items and barely a description of the product you're buying and a picture, and sometimes a bad one at that.   In fact, you can find the very same cryptic description on other websites, and it's exactly word-for-word.  The only difference is the appearance of the page and name of the retailer.  These are operations that exist only on the internet.  They carry no inventory, they most likely are difficult to contact by phone or email.  They are nothing more than a drop-shipper set up by another less-than-honest "make millions without working" scammer.  And no, you can't make millions without working, that's a whole other scam that's been around long before the internet. 

These internet boiler-room operations have never seen the product, they don't know how it works or the quality level of the product and frankly they could care less.  The scammers who set themselves up or others who have been scammed are fully automated.  It takes just a few moments to upload the products into a database and just like that, they're in business 'without really trying.'  They just want your order, so they can bill your card, then contact the people they have never met who promised them "internet millions" to ship you the product they've never seen.  If a retailer has no time to describe the product they are offering, and you've seen the very same words before on other sites, those are product-selling farms and you need to steer clear.  It's just some couple in their pajamas, or a scammer who set up 50 similar websites, who got sucked into paying another scammer thousands of dollars for a website, or a bunch of them, foolishly thinking they can make lots of money without working.  They'll be out of business very soon because they can't make enough money to pay the fees the scammer who set them up is charging them.  They show up, and disappear off the net almost daily.  If they have the look and feel of a dozen of other sites you looked at, they are a part of the "make millions" from the internet scam.  Stay away from them, it's nothing but trouble.

Is the price too good to believe?
They have a point of contact on their site and everything looks legitimate.  And the price is absolutely the best you can find.  And, it's not only lower than everyone else, it's really low.  How can you pass up such a deal?  The devil is in the details and it's called "shipping and handling" and where they are located. 
Shipping and Handling: If you buy a lot of stuff on the internet, you've run into it.  You don't really know what the shipping charges are and you can't seem to find anything on their site.  It's a favorite trick of the boiler-room internet scams described above.  But, you move ahead, place the order and still don't see anything about shipping until you get your credit card statement, or see a charge online for your card that doesn't match the price you thought you paid.  In fact, with the shipping charges included, the total price is higher than at least a half-dozen sites that you could have received free shipping from.  When you complain, the company says you can return it, but there's a 15% re-stocking charge.  When you figure out the return shipping charges plus the re-stocking charge, it isn't worth it, but you feel like you have been taken.  It's not a good feeling.

Where are they?  Quite often if the price is so low, it's because the website is located in a foreign country.  That's not to say a website located outside the U.S. is not legitimate.  There are plenty of fine retailers located in Canada, Europe and other locations.  But, the key here is price.  If the price is so good it's hard to resist, that's because it's probably a scam, most likely involving stolen goods or counterfeits made from cheap components.  And, here's the bad part.  The warranty is NOT honored by the manufacturer if you didn't buy it from an authorized retailer in the U.S. and it's certainly not going to be honored by the manufacturer if it's a fake.  

An example is the product line from Orient Watch of Japan.  Consumers can buy an Orient watch from a number of worldwide locations.  Some are legitimate dealers, some are not.  Fake watches are a big business, and though not well known in the U.S., Orient is a very well-respected brand in Asia and Europe and it's not uncommon for counterfeit Orient watches to show up in the market with non-jeweled cloned movements that might last six months, if you're lucky.  This is not uncommon with high-end eyewear as well.  If you depend on eyewear to protect your eyes, counterfeits will not do the job in every respect from simple UVA/UVB ultraviolet rays protection to meeting ballistic requirements.

Sometimes it is very difficult to discern whether the retailer is located in the U.S.  That's why it is very important to KNOW where they are and HOW to contact them.  In our research we have found many retailers that look like legitimate U.S. retailers, but the tell-tale signs when looking at their site, determining where the URL is hosted, and all the other details that most consumers either don't have the time to research or the tools to make a final determination, give them away.   They are often located in Malaysia, Indonesia, or other locations where they operate freely without recourse for consumers that have been scammed.
The other scam is to allow you to place the order online and in the email order confirmation you receive they disclose how much the shipping is going to cost.  They are betting that you either won't notice it, or won't open the email in time to stop the shipment.  That's because, low and behold, they have disguised the sender line and subject line of the confirmation email to make it look like one of thousands of unsolicited advertising emails that we never read and automatically delete.  But, that's what they are counting on. And in the end you feel like you have been ripped off.  If you can't see how much it is to ship the product before you give them your credit card number, steer clear of them.

As we uncover more of these scamming techniques we will add the information to this page.

The fundamental things you need to look for:

If you can't see who they are, stay away.

If you can't contact them, stay away.

If you can barely find a description and the site looks like a cookie-cutter of dozens of other websites offering the same thing, stay away.

And, the old adage that goes back long before the internet;  'If it looks too good to be true, it probably is,' so stay away.

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