Drop Ship Scams

Many people have turned to online shopping for the convenience and huge product market that it provides. Naturally, many sellers and business owners have also turned to the Internet to sell their goods. Drop shipping has become an extremely popular selling method among many online sellers. The process of drop shipping consists of the seller working through a drop ship supplier, which ships the goods directly to the buyer. This is appealing because the seller is not required to keep an inventory of items in stock, but only has to receive the customer's order and send it to the supplier. While this is an easy and potentially lucrative selling technique, there are things to look out for if you are considering starting your own drop shipping business.

How to Avoid Drop Shipping Scams

While there are numerous trustworthy and reliable drop shippers on the Internet today, there are just as many dishonest and false scam artists that are only looking to swindle business owners out of large sums of money. There are, however, some basic and simple steps that you can take to prevent this from happening.

One important piece of information to keep in mind when researching a drop ship company is that all legitimate companies provide contact information such as phone numbers and an address. If a company is missing these, that's your first red flag. Also, vague product descriptions and unreasonably high prices that result in little to no profit for your business are other things to be suspicious of.

Contact the Better Business Bureau. If there are many negative complaints against the company in question, it would probably be unwise to sign up with them. It is also imperative that you read customer reviews, as you will discover much about how the company's services function. More importantly, you will know if the company is dishonest or an outright scam.

Common Drop Ship Scams

There are numerous techniques that crooked suppliers use to squeeze money out of customers. Many will advertise products as high quality or authentic name brands when in reality customers are left with either overpriced imitations or poor quality products. There are also scam artists who will sell you a very outdated list of drop shippers for a fee. Some scams or dishonest sites will require a high monthly subscription fee and then fail to deliver on their promises. Sometimes, sites will simply vanish, taking the victims' money with them.

Reputable Drop Shippers

Despite the scam artists, there are still many trustworthy drop shippers out there. It is important that you do your homework when choosing a company. Be sure to check out our directory of reliable and trusted drop ship companies, as well as read the extensive reviews that are provided for each.