How the Rise in E-Fencing Could Mean the Fall of Your Online Store
by Carrie Hinkel on March 11th, 2008
Previous to the internet, pawn shops were the place that local thieves would go to hawk their recently-stolen goods. But things have changed; now these thieves are selling their goods on sites like eBay, Amazon and Overstock. But the stolen goods market doesn’t stop there; products are being sold in bulk from unsavory wholesalers and distributors. Unlike in decades past when common thieves stole products by the box, this new breed of thieves is much savvier. Many are involved in crime rings that stretch across state and international borders, stealing products by the cargo container, rather than settling for a carton or two from the warehouse. These thieves are sophisticated in their operations and many of them work from right inside the corporation. Today, e-fencing is a $37 billion industry where thieves steal products from retailers in bulk and then unload them online.
How to make sure the products you’re sourcing aren’t stolen
Since stolen goods are literally lurking everywhere online, you need to take extra precautions every time you decide to purchase products from a distributor or a wholesaler.
Buy your products as close to the manufacturer as possible - The absolute best way to ensure that your goods aren’t stolen is by buying your products from either the manufacturer or from a factory-authorized distributor.
Check the merchandise before you buy it - There are several online databases that keep logs of recently-stolen or lost property. You can search through sites looking for the goods you are about to purchase. Of course, they don’t list every theft in every country; but they do tend to list many of the larger heists that were reported to law enforcement or insurance companies. The two largest online databases for stolen goods are Trace.com and Just-Stolen.com .
Research the wholesaler - Another step of defense against stolen goods is to do as much background research on the company as you can. Doing a Google search on the name of the wholesale company and the name of any owners and contacts or whcking with the Better Business Bureau are two ways you can do this. If you come across a slew of posts about stolen goods, then it’s best to stay far far away from that company.
So, while not all purchases are going to come with a 100 percent guarantee as to the goods’ legal standing, there are certainly measures you can take to ensure that you’re not dealing with stolen goods. E-fencing is a growing business, and while the Feds are cracking down on both buyers and sellers, the online marketplace is still rampant with stolen goods waiting to be quickly unloaded. And while a deal of 60 to 70 cents on the dollar may be tempting, just remember that there may be a reason why the wholesaler is trying to sell products for such a low price. With just a little research and sleuth work, you’ll be protecting yourself, your business and your customers from stolen goods.