Is Dropshipping Scam? How to Avoid Them? Expert Tips

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Drop Shipping Scam

Recent articles have discussed the ” Drop Ship Scam”. This is a common question I get, along with ” Dropshipping Dead?”

As a matter of fact, I was just browsing through Google articles the other day when I found one that I knew would be a hot topic in drop shipping forums. This article made me feel that I had to defend drop shipping and clarify for anyone new to eCommerce.

Although they didn’t mention drop shipping in the headline, I was certain it was about dropshipping as soon as I read “Why Weebly’s Chief Executive Says No to the Hottest Trend In E-Commerce”.

Drop Shipping Scam

First, let me say that this article is my response the recent negative press drop shipping has received. Second, I assume that the CEO of Weebly does not like the dropshipping model and would prefer to keep it off his platform.

Weebly allows you to create websites. They are similar to Squarespace or WordPress.

According to a recent article published on Inc.com by David Rusenko, drop shipping is a fraud that he does not want to participate in. Rusenko believes dropshippers are eCommerce middlemen.

If you’ve been following my blog for a while, you will know what I think about middlemen. I hate them! It is hard to love those who automate the process and rip off people.

However, I was struck by a few other aspects in this article. Drop shipping is “the newest scam”.

One of The Atlantic’s writers published an article about dropship scams a few weeks prior to the Inc.com article. He shared a story about buying a jacket from Instagram retargeting ads and then feeling that it was from a scammy dropshipper.

Rusenko talks about how dropshippers are increasingly sourcing products from low-cost sources like AliExpress in the Inc.com article. These transactions are usually done in eCommerce stores that use Oberlo and Shopify.

Drop shipping is a broad term

It’s funny because even though I was just starting Drop Ship Lifestyle, and publishing under this brand, it was clear to me that using the term “dropship” would prove tricky.

Dropshipping can be done in many ways. Drop shipping, although the term is broad, is simply a method of fulfilling orders. Dropshipping can be used to fulfill orders from China. It could also be arbitrage.

Drop Ship Lifestyle has many courses and information that will help you build your eCommerce store.

Dropshipping, as you may already know if Drop Ship Lifestyle is familiar, means that we act as internet retailers and sell products for other brands.

  • Step 1: Drop shipping stores can list the product of your supplier for customers to purchase.
  • Step 2: Your eCommerce site is visited by the customer who purchases something.
  • Step 3: You order the exact same item as the customer ordered from your supplier.
  • Step 4: Drop shipping suppliers ship this item directly to you.So that your customer receives what they ordered.

technically we are a middleman. However, there is no intermediary between us and the brands that we sell to. If I were to sell something, for example, a pen, I would do so directly to the pen company. This will help you understand drop shipping.

David Rusenko, a dropshipper who dropsships from China, claims that people are being ripped off. This is insane! I don’t believe anyone is trying to rip off anyone.

Drop shipping from China is not sustainable and long-term, but I agree with you.

Dropshipping has a bad reputation after being exposed to articles that appeal to masses such as The Atlantic article and Inc.com article.

These articles might cause the public to associate dropshipping with a scammy or shady business model.

Here’s the deal about drop ship scams. This was something I said when I first founded Drop Ship Lifestyle many years ago . However, I hesitated to include the drop ship word in my company’s name. Dropshipping was still associated with shady business practices back then.

This is often because you can Google dropshipping and dropship suppliers to find middlemen. In those days, there were many people out there who existed to make a profit off of you as a third-party. It’s not a long-term sustainable model.

Let me conclude with my thoughts on this ‘Drop Shipping Scam.

This was reinforced in my original video about drop shipping’s recent “bad press”. But I will repeat it again, as it is crucial to make money online drop shipping. You should not call yourself a dropshipper when you speak with dropshipping suppliers.

Keep in mind who you are.

Dropshipping is getting some negative press, which I understand. However, I do not believe dropshippers from China or AliExpress are committing fraud. That’s absurd.

In all honesty, I am a little jealous that Shopify is growing at an incredible rate and has done so for many years.

Don’t worry about Weebly CEO’s thoughts. Just remember that you are an internet retailer when you do business with your suppliers and talk to them.

Dropshipper is technically a good term, but it has negative associations.

How to Avoid Dropship Scams

Dropshipping suppliers can be a great way to add products to your ecommerce store. Dropshipping is a popular way for store owners to increase their product range without having to take on debt to fund inventory. Dropshipping is a highly efficient and low-risk model for many ecommerce websites. It can be used by small sellers like Shopify or Walmart.

There is a growing number of scammers who will take your hard-earned money and offer nothing in return. Dropship scams are a common way for retailers to fall prey to bogus companies. Both new and experienced sellers must be cautious when selecting dropshipping companies. Below are some of the most common signs to watch out for in order to avoid falling prey to dropshipping scams, and protect your ecommerce store.

Dropship Programs and Middlemen vs True Wholesalers

Dropship scams are the reason so many dropshippers get duped. Not the talent of scam programs and middlemen is finding products or providing great prices, shipping times and catalogs. It’s more about SEO and marketing. It does not mean that the company or website you find on the first page of results for a search term or phrase is legitimate. An intermediary disguises the source and pretends that he is the supplier.

It is worth noting that most genuine supplier programs don’t list dropship in their URL or title, nor any of their keywords. These suppliers are usually a wholesale bulk supplier to their dealers first and offer the dropship program as an additional option. Look for a “wholesale provider” first. This is not an organization that focuses on dropshipping as their only or primary program focus. Dropship search results tend to favor middleman programs over top suppliers.

Contact information for Dropship Programs is not available

It is crucial to have contact information readily available when you visit a dropshipper’s website. A website address is not enough. The company must also include a phone number, a street address and an email address. If they sell online only, smaller stores may not list a physical address. However, wholesale suppliers will. This location should be clearly identified, as it is essential, and is not available on most websites that are online only. The wholesale distributor should not keep this information secret or difficult to find on their website. This is the location where your products will be shipped. It is possible to search for the address details in a directory site or Google maps. You should verify that the address details correspond to the location’s supplier name.

Larger supplier programs will list all contact points clearly. Some may have specific contacts for each region or live chat. While smaller programs may only have a contact form, larger ones should include a phone number and a telephone number for post-application support or new questions. Although contact details are a good indicator, it does not necessarily prove that the source is trustworthy. Any program, even scam programs, can simply post contact details. It is important to review your supplier’s contact details and physical address. This can be easily verified by you.

Promises of big money and quick business profits

Any company promising big money fast is likely not to be legitimate, just like in any other industry. Dropships or not, any company that promises profits with very little effort is best avoided. Scammers and middleman programs promise big promises and make you pay a monthly fee or an up-front fee. They also often charge for expert coaching and shiny photos of iPads or Xboxes.

Dropshipping can be a great way of making money. We have helped thousands of people get started or expand their businesses over the past decade. However, you must still follow the old-fashioned tradition of hard work to grow your company. You still need to market your website and develop your product listings in order to increase your initial traffic and maximize sales conversions. Dropshipping is not a business model. It’s a fulfillment model. Dropshipping is not a business model. Anyone can do it, but that doesn’t necessarily mean everyone will succeed. Dropship products are often low margin and highly competitive. If you don’t have a business to support it and can build repeatable customer acquisition processes, this model might not work for you. You will need to create a unique value proposition for the market if you want to start your own business. Many dropshippers are successful and profitable because they researched the market to establish a brand and unique supplier relationships.

Wholesale suppliers are not awash with claims of quick riches or “look what our customers made”, with graphics for eBay listings, cost screenshots and revenue figures. A large bulk distributor is primarily focused on wholesale dealers and large bulk orders. Target wholesale dealers and their largest customers are those who purchase pallets or truckloads of products for their retail showroom floor.

The bulk supplier programs that are successful still target smaller dropshippers and offer single-item service and great deals. However, if you were a large distributor think about how your main page would be pitched. Your catalog’s variety, your sales staff’s knowledge, your speedy shipping times, your ease-of-order process, and your reputation as a distributor in the industry would all be promoted. You may not find wholesale information on a supplier website. Instead, you will see “Look at how much you can make online!” or “Get products to sell today!” If you don’t see “supplier” on the website, it is likely that there is no wholesale supplier.

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