There are certain drop shipping scams you should be aware of in order to avoid them.
Failure to do so will jeopardize your business and could even cause you to lose your reputation with your customers and the public at large.
Now we all know that the internet provides an opportunity to start a business at minimal cost compared to a typical brick and mortar business.
One business model that exists for making money online is drop shipping.
This is a unique system where you don't have to physically store any goods but have a supplier deal with the storage and shipping of products to your customers after they have paid for an item on your website.
Like any business opportunity, dropshipping also has its associated risks.
Like honey to a bee, certain scam artists have realized the demand and potential gains linked to this business model and have devised scams to defraud innocent entrepreneurs like you of your hard earned cash.
There are many ways these scams take place.
One of them is people posing as drop ship suppliers when in fact they are nothing more than middlemen.
In a pure drop shipping model, your customer would pay you and then you would pay your supplier.
Your profit would be the difference between the wholesale and retail price.
However, when a scam artist is involved, your customer pays you, you pay the middleman (or scam artist) and then they pay the real supplier.
This ultimately reduces your profit margins and increases the risk of a breakdown in the chain.
Another scam is people selling drop ship lists that either contain middle men or uncertified companies.
These drop ship list sellers are not interested in the growth of your company but rather in taking your money.
Some even dare to ask you to pay a monthly fee to have access to their drop ship list.
Regardless of whether you turn a profit or not, you would still be expected to make this payment month after month.
This is totally insane and something you should run away from if you are ever presented with this request.
A good supplier will be glad to provide you information of what items are really doing well, different ways you can advertise your products, answer any questions that your customers throw your way and provide you with a monthly update of new, out of stock or in stock items in their inventory.
Drop shipping is a wonderful business model but there are many things that can either derail the success of your business.
I would like to show you how to avoid them.
Failure to do so will jeopardize your business and could even cause you to lose your reputation with your customers and the public at large.
Now we all know that the internet provides an opportunity to start a business at minimal cost compared to a typical brick and mortar business.
One business model that exists for making money online is drop shipping.
This is a unique system where you don't have to physically store any goods but have a supplier deal with the storage and shipping of products to your customers after they have paid for an item on your website.
Like any business opportunity, dropshipping also has its associated risks.
Like honey to a bee, certain scam artists have realized the demand and potential gains linked to this business model and have devised scams to defraud innocent entrepreneurs like you of your hard earned cash.
There are many ways these scams take place.
One of them is people posing as drop ship suppliers when in fact they are nothing more than middlemen.
In a pure drop shipping model, your customer would pay you and then you would pay your supplier.
Your profit would be the difference between the wholesale and retail price.
However, when a scam artist is involved, your customer pays you, you pay the middleman (or scam artist) and then they pay the real supplier.
This ultimately reduces your profit margins and increases the risk of a breakdown in the chain.
Another scam is people selling drop ship lists that either contain middle men or uncertified companies.
These drop ship list sellers are not interested in the growth of your company but rather in taking your money.
Some even dare to ask you to pay a monthly fee to have access to their drop ship list.
Regardless of whether you turn a profit or not, you would still be expected to make this payment month after month.
This is totally insane and something you should run away from if you are ever presented with this request.
A good supplier will be glad to provide you information of what items are really doing well, different ways you can advertise your products, answer any questions that your customers throw your way and provide you with a monthly update of new, out of stock or in stock items in their inventory.
Drop shipping is a wonderful business model but there are many things that can either derail the success of your business.
I would like to show you how to avoid them.