subject: Common Drop Shipping Scams [print this page] Anyone who isn't new to the drop shipping world knows that it is an industry full of scams and disappointment. I hate to sound negative, but that's how it is. People flock to drop shipping because of the promise of making money online without a large up front investment to buy inventory and products. It sounds so great because you can sell just about anything you want without having to stock anything. While this is partially true, most drop shippers end up failing because they fall for all the common scams and mistakes that are plastered all over the internet. This article will cover some of the most common drop shipping scams and mistakes made by newbie drop shippers.
Scam #1: Turnkey sites
These are all the sites out there who offer to build you a turnkey store and stock it full of drop ship products that you can sell for profits. You simply set your resale price, and you get to keep the difference between your "wholesale" cost and "retail" price. It sounds great, but unfortunately, these products are generic and thousands of people are selling the exact same thing as you. On top of that, you're not getting real wholesale pricing. Not even close. These people mark up the prices dramatically, leaving you with just pennies of profit. Most times you can find the same products selling for less than your wholesale price if you just search eBay.
Scam #2: Wholesale lists
There are tons of wholesale lists out there that offer drop shipping. Unfortunately, almost all of them are pure junk. If they offer to sell you "wholesale" products without a resale certificate, you're getting scammed. You can't sell wholesale products without a resale certificate. Most of the time, these lists are outdated, generic, and just plain junk. Don't fall for expensive lists. They are going to be saturated anyway.
Scam #3: Subscription sites
Many sites offer wholesale and drop ship products through a subscription service where you pay monthly to access the goods. A true wholesaler will never charge any type of fees to sell their merchandise. Period. If you're paying subscription fees or any other type of charges, you're dealing with a middleman. That means you're paying too much, and not getting wholesale pricing. You will not make money this way.
On top of these common mistakes, many new drop shippers like to head straight to eBay to start selling their fancy new products. They will be sadly mistaken when they see others selling their product for less than their "wholesale" price. Not only that, but the high fees that eBay charges to list and sell products will crush any profit margin they may have had. To sell on eBay, you pay to list a product, then you pay again when the product sells. If you didn't make the sale, too bad, you still pay for the listing. The fee is a percentage of the sale price, which is usually very high. Good luck making any money here.
If you really want to make money drop shipping, think outside the box. Source original products, and find creative ways to sell them. Signing up for the first service you find in Google and trying to flip products on eBay does not work anymore.
