Common Drop Shipping Scams
When you want to make money online, you should remember that criminals are also looking to pad their pockets. Many online users have learned to avoid the whole drop shipping option when they are trying to make money. Most of them have lost money with scams or have heard from friends and family who were the unlucky ones. While there have been a few good drop shipping companies that appeared, such as Shopster, there are still many more that are simply there to rip you off.
There is a long list of different ways crooks will use a drop shipping service to try to scam you, but these are some of the most commonly used tricks that you may come into contact with.
Fake Drop Shipping Lists – When you begin your search for a good drop shipping company, you are more likely to find a lot of websites offering to sell you a list of companies. For a small fee you can easily begin to make millions selling these low cost, wholesale products, which you can then markup as you create your online business.
One problem that usually arises from such lists is the fact that you may buy a fake one. Once you have received the list, it is likely to be filled with information that is false as well as websites and companies that do not exist.
Outdated Lists – Another list you are likely to receive is an old one. This list is a common scam in the hunt for a drop shipper. A seller will hand you a bunch of websites that have gone out of business years ago, or links that died over time. If you can get into contact with the seller, they will say that they never claimed that that the sites and companies still exist. They were simply selling names and it is not their fault if the company has disappeared.
Monthly Fees – You will have to pay attention to companies who ask for any type of fees. Think of a drop shipping company as an affiliate business. When you sign up to an affiliate program, you’re not asked to pay a fee because you are in effect, making them money. When your customers order a product, the drop shipper is receiving a cut of that profit, so you should not have to pay them a signup fee or a monthly fee.
However, there are some cases in which a fee may be asked. For instance, at Shopster you are asked to pay a monthly fee as well as a signup fee. This is not because of the drop shipping aspect of their company. You are paying to have your own store, the ability to accept credit cards and turning this shop into your own ecommerce money making business.
Full Services and Little Profit – Once you have signed with a drop shipper, the less reputable ones may then ask for fees and payments if you want to have more capability and selections. The free signup is used to reel you in before they attempt to get your money. If you pay for all of these extra fees, your profit margin will get smaller until and in the end, it will not be worth it to continue your business with them.
Dead Links – A website that is supposed to be professional should be filled with dead links. When you enter a drop shipping site, always take the time to look around, click links and read any FAQ’s that may be available. If you are not comfortable with the website, look elsewhere to find a good dropshipper.
