Dropshipping Scam Prevention


How not to be scammed by dropshippers

Dealing with dropshippers can go bad because there are scammers out there pretending to be what you’re looking for. They pretend to be dropshippers that are willing to assist you selling products online. Learning how to avoid fake dropshippers will help you become a successful retailer. I’m here to teach you that prevention is better than cure, to spot out the fakes so you don’t end up being scammed victim.

Signs you are dealing with a crook, Watch out for these signs!

A real dropshipper supplier would not charge a setup fee or membership fee! Real dropshippers don’t require start-up fees to begin business with them. Some of them even have names that sound like the names of famous, well-known companies you may be familiar with, in a sad attempt to associate themselves with legitimacy.

When looking around for dropshippers, the first interaction on the phone could tell you if they are legit or not. When you first call them they should answer by either stating their name of business name. If they just pick up the phone and it feels very casual there’s a good chance they are crooks.

Real wholesalers and dropshippers don’t request sensitive information like your business license or sales tax ID during the initial contact. More real wholesalers may require a tax ID, but not immediately. A tax ID is only necessary for US sellers who wish to buy from US wholesalers. If you live outside of the US, you will not need a Tax ID.

Another sign you are dealing with a crook is if the dropshipper seems non negotiable when you request a sample of the product. Honest dropshippers should be more than glad to offer a sample of their product. (Although you probably have to pay for it) If they do not offer a sample product, be cautious and question their reasons for not offering one.

Any dropshipper who prefers wire transfer or Western Union money checks are not trustworthy dropshipper. These forms of payments are not safe. At first the wholesaler may claim to take a secure form of payment (such as credit card or PayPal) but later turns around and says they only accept wire transfer or Western Union, which are not the best payment options for you. Not all dropshippers that take Western Union and wire transfer are scammers, but this is the most common way scammers operate and you should always steer on the side of caution if you are asked to pay by these methods when not having dealt with or knowing the person first.

When looking at the dropshippers website and you see no actual physical address or contact phone info for you to get in touch with them is a big sign of scammers. That means they are trying to stay away from being reached when they run off with your money or sensitive information. You have to be straight up with them and ask for their address or contact phone number, they have to be accessible for you. If they are legit this will be no problem at all!

Real dropshippers DO work directly with the Manufacturer.

Real dropshippers stock their own inventory and ship from their own warehouse. The Manufacturer of the product, the people who actually make the product, know who their legitimate Wholesalers really are because the wholesalers will order products from them in bulk on a regular basis. Again, Real dropshippers work directly with the manufacturer buying in bulk volume orders on a consistent basis. They get the best prices so they can pass savings online to you as the retailer. The more you sell, the more they buy and everyone in the chain makes profit. Fake wholeslers don’t have their own inventory or products. The wholesalers have accounts with the real dropshipper who carries the product in their own inventory. False dropshippers pretend to be a wholesaler and strategically increase what your true wholesale price should be, making it seemingly impossible for anyone to profit. Real Certified Dropshippers work directly with the Manufacturer, order in bulk and give true wholesale prices as result. Remember Fake Dropshippers do not have the credentials necessary to work with the Manufacturers.

 

Real Drop Shippers DO want you to succeed!

 

A very significant detail about real dropshippers and fake ones is that real certified dropshippers want you to succeed!

They need retailers like you selling their products and to know that in order for you to make sales profit, you have to have competitive prices. They give you the best wholesale prices you can get for that very reason. Fake Dropshippers don’t care all if you succeed or not. They hit you with outrageous fees and inflated ‘wholesale’ prices in the occurrence you make a sale.

About Justin Sookram

Justin is the founder of Dropship Tour and dropshipping evangelist. Do you want to grow your dropshipping company faster and not waste time and money on common mistakes? Subscribe ttto my free dropshipping newsletter and get access to guides, checklists, tips, and featured droshipping companies to get you up and running.

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