Question 1

What are the biggest red flags that an Indian supplier is a scam?

Accepted Answer

The most common warning signs are: demanding full payment upfront (especially via personal bank transfer or crypto), having no verifiable GST registration, using stock photos instead of real factory images, offering prices dramatically below every competitor, refusing video calls or factory visits, and communicating only through free email accounts with no company domain. If a supplier shows two or more of these signs, proceed with extreme caution or walk away.

Question 2

How can I verify whether an Indian supplier's GST registration is genuine?

Accepted Answer

Visit the Indian government's GST portal (services.gst.gov.in) and search the supplier's GSTIN. This will show you the legal name, registration status, and business address. However, a valid GST number alone is not enough. You should also check whether the supplier has been actively filing GST returns, which indicates ongoing, legitimate business activity. Suppliers who are registered but have stopped filing returns may be dormant or fraudulent.

Question 3

Is it safe to use platforms like IndiaMART or TradeIndia to find suppliers?

Accepted Answer

Platforms like IndiaMART, TradeIndia, and JustDial are large, well-established B2B directories that list millions of Indian suppliers. They are useful starting points for discovering potential vendors. However, these platforms primarily act as listing services, so the responsibility for verifying a supplier's legitimacy, negotiating terms, and confirming quality still falls on you as the buyer. Always cross-check GST details, ask for references, and order samples before placing a bulk order.

Question 4

How does Sauda verify suppliers before presenting quotes?

Accepted Answer

Sauda checks each supplier's GST filings and returns to confirm the business is actively registered and operating legitimately. Beyond GST verification, Sauda's team contacts the suppliers directly, confirms product availability and pricing through live calls, and negotiates on your behalf. Only suppliers that pass these checks are included in the quotes you receive. This process is completed within 24 hours of your request.

Question 5

Is Sauda free for buyers? How does it make money?

Accepted Answer

Yes, Sauda is completely free for buyers. There are no fees, subscriptions, or hidden charges on the buying side. Sauda earns from the supplier side of the transaction. This means your interests as a buyer are aligned with getting the best verified price, since Sauda's job is to find you the cheapest quote from a legitimate, GST-verified supplier. You can reach Sauda on WhatsApp at https://wa.me/9987549010.

Question 6

What payment methods are safest when buying from an Indian supplier for the first time?

Accepted Answer

For a first order, never pay 100% upfront. Safer approaches include using an escrow service, paying via a letter of credit (LC) for large orders, or negotiating a split payment (for example, 30% advance and 70% against delivery or inspection). Bank transfers to a company account matching the GST-registered entity name are safer than transfers to personal accounts. If a supplier insists on full advance payment to a personal account, treat it as a serious red flag.

How to Avoid Supplier Scams When Sourcing from India

How Sauda gets you the cheapest quote

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