Tips To Avoid Dropshipping Scams

Tips To Avoid Dropshipping Scams

Tips To Avoid Dropshipping Scams

Dropshipping has been unsurpassed in its use and efficiency to the online retailers. But unfortunately the numbers of scams that happen in this arena are also unsurpassed. So, it becomes very important for anyone willing to venture into this business, to understand what a typical scam looks like and how to avoid them.

Spot The Scam

The most important thing for any retailer before entering into a Dropshipping agreement is to spot the scam, if there is one. Failure to do so could lead to a lot of heartburn and lost money. Here are some typical scams.

Margin Squeeze: Scam does not mean that you will have a fraudster at the other end. You could end up in a perfectly legal relationship and find that the prices you are paying do not leave you with anything. As such, you'll get the impression that you're working for free.

This is what happens when dropshippers have elaborate pricing strategies. They will have various hidden fees and sometimes they will be conditional upon the number of sales. If you see this, you have all the more reason to be wary, because this is generally a trick employed by middlemen who live off the fees while they pass the order to the dropshipper.

Monthly Fees: Dropshippers will always charge you per unit sold. If you see a monthly charge, it is a scam. If a genuine dropshipper were to do this, they could get ripped off their money.

Fake Lists: A lot of scamsters promise to sell you lists of dropshippers at dirt cheap prices so that you can find the one that fits you best. If the price is too low, it probably is a hoax. Many people have discovered this as they ended up calling out of service or outdated phone numbers.

Protect

While the presence of the above definitely indicates a scam, its absence does not necessarily negate one. There are professional scamsters who know this and will avoid these mistakes. So, be cautious is the mantra!

Research: It is very important to know who you are dealing with. Make sure that you visit the dropshipper and inspect his premises. Most online dropshippers are scams. Believe what you see and start small. Don't send too many orders until you trust the organization.

Another tip is to know that authentic dropshippers will not deal with the general public. They might want to know if you are a business and may want your federal and state tax ID; if they do not ask you for these details, they're most probably, trying to scam you.

Use Secured Payments: Lastly, it is very important to ensure that you are using secured payments. If you are not, then you are more likely to get into trouble. If you use credit cards or paypal services, you can apply for a chargeback in case you get duped out of your money.

Lastly do not believe search engine results. A lot of these scamsters are search engine mavericks.

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