Doing business online is indeed a cost-effective way to promote and expand your business, but at the same time, not one of the safest ways. Occasionally newspapers flash stories of people getting duped while doing business on the internet.

Recently, a leading website staff members were accused of indulging in fraudulent means to promote companies which otherwise were not worthy of doing business. Hence, there are both advantages and disadvantages of operating in a virtual world.

Although, internet has opened up the global marketplace right at your desktop which saves time, money and efforts that you generally put in promoting and selling your products traditionally, but along with it you are faced with risks of getting duped, doing business with non-existent companies, getting sub-standard products after payment, among other things.

So what should one do before taking one's business online or rather what steps one should follow while dealing with companies online?

Below are some tips that can help you in doing business online, safely:

1. Always check the credibility and financial status of the company before doing any business or making any transaction.

2. Check the company's infrastructure before placing orders and make sure whether they are capable of fulfilling your requirements or not.

3. Search the company name in search engines. You never know you may find some negative or positive review posted about the company, which may be of help to you.

4. Look for any certification that the company has. Certified companies signify that they are verified by third party agencies and have good infrastructure.

5. Do not make any kind of payment online using escrow, Western Union, et al.  Always work in payment mode like irrevocable LC, LC at sight.

6. Ask for product samples and take reference from buyers with whom they have done business.

7. Correspond with the company representatives on phone and email before giving any order and making payment. You should verify the company's official email address, phone numbers and all contact details.

8. Cross check with other sources even in case of verified companies listed on any B2B portal or any other website.

9. If you have doubts, do not shy away from approaching the embassy of the country from where the supplier/ buyer belongs. Most embassies have a trade wing and can help you out.

10. Ask for their past business partners and contact them and know their experience of working with the company in question. Be alert, careful and always do some research beforehand.

While many people take their business online thinking it will be an easy way to bring in revenue, in actuality like any other business, it requires hard work and know-how. Taking one's business online has numerous advantages. Having said that, bringing down the risks involved in online business to the minimal level should be the foremost area which one should look into to remain successful. 

Please note:
* The views expressed by the author in this feature are entirely his/ her own and do not necessarily reflect the views of SME Times.