Can Individuals Sell on Tmall?
Tmall, primarily a platform for businesses, generally requires sellers to be registered companies or legal entities. However, individual sellers can operate on Tmall under specific conditions. Tmall offers two types of platforms: Tmall (for businesses) and Tmall Global (for international merchants). Individuals wishing to sell on Tmall need to meet the platform’s requirements, such as business registration, valid tax records, and meeting operational standards. For international sellers, Tmall Global provides a more accessible platform with fewer restrictions, enabling individuals or smaller companies to sell products directly to Chinese consumers.
A Business Story: Sourcing Custom Wall Panels
The Vision
In 2023, UrbanEdge Designs, a fast-growing interior design firm based in New York, set out to source custom wall panels for a high-profile corporate office renovation. They needed eco-friendly, high-quality panels that would meet the project’s design and sustainability requirements. After extensive research, they found GreenPanel Innovations, a supplier on Alibaba, offering exactly what they needed.
Initial Impressions
UrbanEdge was impressed by GreenPanel Innovations:
Prompt Communication: The supplier answered all questions swiftly and with great detail, providing technical specifications and design options.
High-Quality Samples: The panels received were beautifully designed and made from sustainable materials, matching their expectations for the project.
Attractive Pricing: GreenPanel’s offer was competitive, with the cost being about 30% less than local suppliers.
Encouraged by these positive attributes, UrbanEdge placed an initial order worth $40,000 for the panels.
Red Flags Appear
As the process continued, several red flags began to emerge:
Off-Platform Communication: GreenPanel requested that communication be moved to WeChat, explaining that it would make updates easier.
Suspicious Payment Terms: The supplier requested a 50% deposit—$20,000—paid to a Hong Kong-based account under a company name unrelated to GreenPanel.
Vague Documentation: Requests for additional certifications and factory information were met with vague responses or delays.
Despite these warning signs, UrbanEdge continued with the order, driven by the desire to meet project deadlines.
The Fallout
After transferring the deposit, the communication from GreenPanel slowed down, with repeated excuses for delays due to shipping issues and factory problems. Eventually, GreenPanel stopped responding entirely, and six months later, UrbanEdge had neither the panels nor their money.
Turning to IntelliChain
Desperate for answers, UrbanEdge contacted IntelliChain, a provider specializing in supply chain verification and fraud investigations.
IntelliChain’s Findings
IntelliChain’s investigation revealed the following alarming findings:
Nonexistent Factory: The virtual factory tours provided by GreenPanel were staged, filmed at a legitimate factory that was unrelated to GreenPanel Innovations.
Empty Office: The registered office address in Shenzhen was actually an abandoned property with no connection to the supplier.
Fraudulent Documentation: All certifications and business licenses provided were forged, and there were no records of GreenPanel Innovations being a registered company.
GreenPanel Innovations turned out to be a fraudulent operation targeting international businesses with high-value orders.
How IntelliChain Could Have Prevented the Scam
Had UrbanEdge used IntelliChain’s services from the beginning, they could have avoided this situation. IntelliChain could have provided the following safeguards:
Factory Verification: Independent inspections of the factory and office locations could have identified the fraudulent claims early on.
Secure Payment Guidance: IntelliChain would have advised using secure payment methods like escrow services to protect funds during transactions.
Real-Time Tracking: IntelliChain’s tracking services could have provided transparency and up-to-date progress reports, alerting UrbanEdge to delays before they became major issues.
The Lesson Learned
UrbanEdge Designs learned the importance of conducting thorough due diligence when sourcing products from overseas. Since this experience, they now use IntelliChain to verify suppliers, ensuring that all future transactions are secure, legitimate, and transparent.
Contact IntelliChain Today
Phone: +1 307-310-5502
Email: connect@intellichainco.com
Address: 306 N Main St. Sheridan, WY 82801
Let IntelliChain be your trusted partner in China, ensuring that every step of your sourcing process is secure and seamless. With our local expertise, we guarantee that your products meet the highest standards of quality, compliance, and safety. By partnering with us, you can focus on scaling your business, knowing that every detail—from factory vetting to logistics—is handled with precision.
Let IntelliChain be your eyes and ears in China, empowering you to bring the best products to market with confidence.
