As many of us know, the recyclables business is highly lucrative.
With large sums of money involved and many deals made remotely, the international recycling industry has become a breeding ground for fraudsters. Legitimate sellers are now increasingly hard to find.
However, Tradefox founder Chris Yerbey is working to change this. He focuses on connecting trustworthy traders to ensure no one loses money to unscrupulous fraudsters.
Trust: A Rare Commodity in the Industry
The recycling industry often resembles the Wild West, where trust is scarce. Scams like empty shipping containers, low-grade materials, fake shipping documents, and false media reports cost honest importers millions annually.
Chris Yerbey knows this firsthand. He once lost $150,000 in a single scam. Instead of dwelling on the loss, he decided to take action.
Chris spoke with other buyers and discovered that many had suffered similar losses. However, few shared their stories openly.
Breaking the Stigma Around Fraud
Many traders avoid discussing fraud due to the fear of appearing vulnerable. Some believe fraud is inevitable in this industry, while others struggle to prove wrongdoing legally. Additionally, insurers rarely cover fraud, and pursuing justice often costs more than the losses.
Chris realized that prevention is key. This realization led him to create Tradefox, which has earned a reputation as the recycling industry’s version of Trustpilot over the last eight years.
Rebuilding Trust Between Traders
Tradefox now has over 3,800 members—more than any other industry trade association.
Using the platform, members access detailed trade reputation reports and trade with minimal risk. The platform evaluates a company’s import/export data, credit information, and buyer/seller feedback, assigning them a score.
Members also learn about the materials others trade and get insights from their vendor’s trading history. Once a reputable partner is identified, they can finalize deals over a video call.
This sense of community helps members build trust-based relationships. It has become increasingly important as the world adapts to remote work after COVID-19. The reduced need for travel also saves time and money.
The Urgent Need to Close the Trust Gap
All things considered, with nearly 1% of the cost of all imports being lost due to fraud or bad deals – in an industry that´s worth just over a quarter of a trillion dollars – there’s an urgent need to address the trust gap and the inefficiencies of the recycling industry.
Reputation is crucial in a business where promises can be broken and large sums of money are at stake. With Tradefox growing rapidly, more scrap buyers and sellers can focus on growing their businesses, rather than doing battle with unscrupulous fraudsters.
But the battle rages on. At least for the time being; until the rest of the recycling sector cleans up its act.
Join the Conversation
Tradefox is hosting a two-day virtual recycling conference to connect honest buyers and sellers. Learn more and sign up now!
