Have you ever contacted a supplier on a B2B platform only to find out their listing was fake or the product never arrived? Fake listings on B2B marketplaces in India are more common than many buyers realize. For businesses, falling prey to bogus suppliers can mean financial losses, wasted time, and damaged reputation.
This article explores how fake listings affect those using a b2b marketplace in india, what risks buyers face, and practical tips for spotting and avoiding these scams. We’ll also look at what trustworthy platforms are doing and how entrepreneurial ecosystems like Pepagora can help you grow safely. By the end, you’ll have clear guidance on buying smarter in the Indian B2B marketplace world.
Understanding Fake Listings: What They Are & Why They Happen
What Are Fake Listings?
Fake listings are product or supplier profiles that misrepresent the truth. They may involve:
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Suppliers who don’t exist or don’t handle the product they claim
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Products that are low quality, counterfeit, or not delivered
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Contact details that are fake, incomplete, or misleading
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Misuse of images, specs, or previous customer reviews
These listings are harmful because they mislead buyers and erode trust across the marketplace.
Why Do They Happen on B2B Marketplaces in India?
The problem arises due to a mix of factors:
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Low entry barriers: It’s relatively easy for new suppliers to register, sometimes without strong verification.
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High competition: Scammers try to stand out by listing extremely low prices or exaggerated specs. Buyers hoping for bargains might overlook red flags.
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Limited regulation or enforcement in certain cases: Not all platforms have strict policies or strong verification processes.
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Asymmetric information: Buyers often don’t have full visibility into supplier history, or the product’s authenticity until after purchase.
According to a LinkedIn post on how fake business listings and ghost suppliers lure buyers into paying upfront fees, this is a growing concern.
The Real Risks: What Buyers Stand to Lose
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Financial loss from non-delivery, partial delivery, or receiving substandard goods.
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Operational delays as time is lost following up on suppliers, returning goods, or finding replacements.
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Legal or compliance issues, especially in regulated sectors where counterfeit goods violate laws.
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Reputational damage if you resell or use products that are fake or do not meet promised specs.
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Wasted resources: Documentation, quality checks, logistics all can cost significantly even before you realize the supplier is fake.
Data & Statistics: How Big Is the Problem?
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As per a blog by Castler, B2B platforms such as IndiaMART and TradeIndia are increasingly using escrow accounts to protect buyers, because online trade scams have escalated. These include false listings and non-delivery.
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IndiaMART, India’s largest B2B marketplace, has recognized “fake suppliers” and listing of fake products as a significant issue. The company has increased verification efforts, such as requiring GST registration and confirming mobile numbers, to reduce this risk.
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According to IAMAI, online shopping frauds in India cost consumers over INR 4,000 crore each year. While not all of that is from B2B fake listings, the report includes product non-delivery and false listings among major fraud types.
These data show that fake listings are a real and costly issue in the B2B marketplace in India.
How to Spot Fake Listings: Checklist for Buyers
Knowing what to watch for goes a long way. Here are key signals and red flags:
| Red Flag | What to Check / Verify |
|---|---|
| Too low prices compared to market average | Ask for detailed quotes; check raw material costs or competitor prices |
| Incomplete information | Look for photos, product specs, certifications, physical address, contact phone |
| Supplier profile issues | Check reviews, years in business, GST number, company registration, trade license |
| Payment before delivery demands | Avoid full upfront payment; negotiate partial payment or use escrow if possible |
| Generic or stolen images | Use Google reverse image search; ask for recent photos or videos |
| No trace of physical address or business presence | Ask for references, visit if possible or verify via third-party databases |
Best Practices: Tips for Buyers to Avoid Fake Suppliers on B2B Marketplaces in India
Below are proven strategies to reduce risk when sourcing via B2B marketplace in India.
Verification and Due Diligence
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Request documentation: Ask for GSTIN, business registration, previous invoices, certifications.
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Use third-party validation: Industry bodies, trade associations, or governmental databases may verify supplier details.
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Communicate in person or via video: Seeing the factory, warehouse, or product in video reduces risk.
Payment Methods and Contracts
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Use escrow services or payment guarantees: Platforms or third-party services that hold funds until the buyer confirms satisfaction help avoid losses.
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Stage payments: Pay part of the sum upfront, part after production or delivery.
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Detailed contracts: Clarify specs, timelines, penalties, dispute resolution.
Platform Choice & Supplier Rating
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Prefer marketplaces with strong verification systems: Those that verify identity, require GST, display ratings, reviews, and issue badges.
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Look for redressal policies: Platforms that allow claims, returns, or refunds when goods or suppliers are not as promised.
Use Tools and Resources
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Reverse image search, verifying company address on maps.
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Checking reviews from multiple sources.
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Asking for references from other buyers.
What Platforms & the Ecosystem Are Doing
Platforms are increasingly taking action:
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Verification improvements: IndiaMART and others are tightening their onboarding requirements — confirming mobile numbers, GST registration, etc.
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Escrow accounts or payment protection services: Some marketplaces are integrating escrow features or third-party services to protect buyer funds until goods are verified.
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Stricter policies against fake suppliers: Platforms are adding penalties, removing listings, or banning bad‐actors once discovered.
Entrepreneurial ecosystems like Pepagora also help by educating buyers and suppliers, providing tools and network effects that reward verified, reliable listings. Choosing a B2B marketplace in India that works well with such ecosystems improves safety.
Role of Pepagora: A Secure Path for B2B Growth
In the journey of sourcing or selling via a b2b marketplace in india, partnering with a growth engine like Pepagora can add another layer of security and opportunity. Pepagora’s entrepreneurial ecosystems offer:
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Networking with verified suppliers and buyers
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Support in due diligence and supplier background checks
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Guidance on digital trust best practices
When you buy through sites that are part of Pepagora’s ecosystem, you're less likely to run into fake listings or unreliable suppliers. Pepagora helps promote transparency and trust.
FAQ:
Q1: How common are fake supplier listings on B2B marketplaces in India?
A1: While precise numbers are hard to pin down, reports show that false listings and misleading product descriptions are a major issue. IndiaMART, for instance, cites “fake suppliers” and false product listings among its concerns.
Q2: What legal remedies do buyers have if a supplier turns out to be fake?
A2: Remedies include legal claims under the Indian Contract Act or in Consumer Protection laws; filing complaints with e-commerce grievance redressal bodies; or using platform dispute mechanisms. However, these can take time and effort.
Q3: Do all B2B marketplaces in India have escrow protection?
A3: No. Not all marketplaces offer escrow services. Some are evolving to include them. Buyers should check if escrow or payment protection is offered before proceeding.
Q4: What is a red flag price point? When should I be suspicious?
A4: If a quotation is significantly (e.g. 30–50%) below what others are charging, it’s a red flag. Extreme price differences often accompany vague listings or unverifiable suppliers.
Fake listings pose a serious risk on a b2b marketplace in india they can cost time, money, and reputation. But buyers can protect themselves by being careful, demanding verification, using secure payment methods, and choosing marketplaces with strong safeguards.
Insight: Always treat new suppliers with healthy skepticism not as mistrust, but as due diligence. Even when using trusted platforms, insist on documentation, proof, and only release payment when you have verified what you ordered.
If you want safer, smarter B2B growth, consider using or partnering with a service like Pepagora B2B Growth Engine. It helps buyers and sellers work within ecosystems that emphasize trust, verification, and quality making fake listings less likely and business success more certain.
Join Pepagora today – the best B2B marketplace in India for verified growth.
