Ecommerce: Spotting a Fraudulent Drop-Ship Partner

A growing European fashion e-commerce retailer wanted to expand its range with a UK supplier offering premium hoodies at unusually low wholesale prices. The website looked polished and professional, but the procurement team was cautious.
 

Using AlertFlag

• AlertFlag revealed the company was only recently incorporated and had no filed accounts.
• Director history showed involvement in multiple dissolved entities with poor payment histories.
• Online and social presence looked thin: recently created profiles, stock imagery, and low engagement.

Outcome

The e-commerce brand decided not to proceed. They likely avoided a scenario in which orders were taken, customers were charged, but products were never shipped, resulting in chargebacks and reputational harm. Internal estimates suggested this could have cost between £15,000 and £25,000.