Drop shipping scams – how to avoid?

If you have a retail online company or a home based business, drop ship distribution suppliers can be the source of your products. However, it is important to find the right company for your business. This is especially true nowadays due to the increase in drop shipping scams.

If you choose a bad drop shipping supplier, you will waste a lot of time and money. In reality, the number of scam companies exceeds the original companies. Choosing a good, reputable drop shipping supplier is crucial if you want to avoid scams.

Searching for a reputable drop ship supplier online is certainly the best possible option for you. It saves you precious time and gives you the opportunity to compare companies. However, there are certain things to keep in mind while looking for a genuine drop ship company.

First of all, most of the drop shippers are not wholesale drop shippers at all. Rather, they are the middleman who advertise themselves as the drop shippers. Naturally, they fall short of the standards of actual drop shippers. Of course, the middle man, known as MLM, cannot offer you products a wholesale price. Either they will charge an additional subscription/ membership fee or they will charge you more than the usual wholesale fees.

This is easy to understand. The true wholesalers make their profit from the wholesale price that they offer. The middleman has to buy the products from them and naturally, can’t offer you the product at the same price.

In fact, this is one of the ways through which you can easily identify the fake drop shippers. Also, if a company is really a wholesale drop ship company, it will allow retailers to sell the products before the merchant pays them. So, to sum things up, you have to remember that a true wholesale drop ship company will not charge you any access or subscription fees. Also, they will offer you the product at the wholesale price. On the other hand, the fake ones will charge additional fees and charge you more than the actual wholesale price.

There are different ways to identify a true wholesale drop shipper. First of all, it should be a wholesale distributor that offers the additional service of drop shipping items anonymously on behalf of the retail merchant. Here, you have to remember that very few of the distributors are drop shippers; but if it is a drop shipper, it must be a wholesaler.

It is important to do a bit of research in this regard. Generally, real wholesale drop shippers have large inventory in stock and a huge infrastructure. When you are looking for the right company, you should ask a lot of questions before choosing a company. Also, there are scam review sites to ensure that you are not mislead when choosing a drop shipping supplier.