Wholesale Dropshippers Scams Revealed
When it comes to online marketing, there is a whole lot to know. From the basics such as affiliate marketing, blogging and search engine optimization, to the complex like web design software or website hosting services, plenty of opportunities exist. However, with so many options available it can be hard to decide which one is best for you. In order not to get taken in by unscrupulous companies masquerading as dropshipping wholesalers, we have compiled a list of wholesale scam warnings that will help you avoid them in future shopping sprees. So without further ado - these are the top ten drop shipping scams out there!
When it comes to online marketing, there is a whole lot for you to learn about. From the basics such as affiliate marketing, blogging, and search engine optimization, to the complex like web design programs and website hosting services, plenty of opportunities exist. However, with so many options available it can be hard to decide which one is best for you. In order not to get taken in by unscrupulous companies masquerading as wholesale suppliers , we have compiled a list of wholesale scam warnings that will help you avoid them in future shopping sprees. So without further ado - these are the top ten drop shipping scams out there!
First, it's important to note that not all wholesalers are going to be fraudulent. However, a lot of them will try to pass off as legitimate businesses when they really aren't. So keep an eye out for the following:
1. The company that doesn't have a proper website - There is nothing wrong with having a simple site with one or two pages on it that states who you are and what you do, but if they don't have anything more than that some problems may be occurring. One thing to look for is if they are using your product images or a similar one. If you find them using your photos, then you may have an issue.
2. Not giving you all of your designs promptly - When dealing with a wholesaler, the last thing you want to happen is them taking weeks to turn around your work on time. In fact, many scams will string you along for so long that it's often too late by the time they deliver the product and start taking their commission. Be sure not to fall for any promises that take up more than 2 weeks in delivery time or any other excuses that aren't justified.
3. Being unresponsive when you need to talk - If you have questions about your order, know that most of the time wholesale suppliers should be happy to help. You may have questions about the quality of your product, or if they can alter it in any way. Whatever the case may be, if they are not responding to your emails or they are being evasive when dealing with you then most likely something is wrong. This is because almost every experienced wholesaler out there will want to work with you not just sell products and take commissions.
4. Getting your work done by a third party - If you have never worked with a wholesaler it's important to realize that most of them do the actual fabricating themselves, or at most a third party will help them out. But when being scammed you will often hear of wholesalers doing things through their own employees, which goes against the whole concept of being a legitimate company. It's important not to trust anyone who tells you that they are working with their own employees and that they don't need to do business with you directly.
5. Violating trademarks or copyrights - Many people think that selling products online means that there are no laws in effect so long as the items aren't trademarked or copyrighted. However, this is not true. The US government is very strict when it comes to trademark infringement and copyright violation, especially for overseas marketers trying to sell in the states. In fact, if you get caught by the authorities you may end up facing stiff penalties and even criminal charges.
6. Agreeing to a price that seems too good - It should go without saying that if your wholesaler has products listed at prices that seem "too good to be true" than they probably are! In many cases these companies will use unethical pricing strategies such as putting pictures of an item for sale for $500 but when you place an order they only charge $300 instead of the full price. What's more, they will "accidentally" not mention the price on the website, and they will trick you into thinking that it's a much lower cost than normal. Always buy from legitimate wholesalers who have prices that seem like a good deal but not one that is too good to be true.
7. Offering to pay you in "advance" - This tactic is often used by scammers because they know that many people are not going to do their research on them beforehand. Some will tell you that in order to become an affiliate with them or use their purchased service/product that you must send them a sum of money upfront as part of your "contractual agreement". However, this is not the case and you should never pay anyone money in advance unless they are a reputable company.
8. Not asking for any information during the ordering process - If you do come across a company on eBay or Amazon that is offering products for an incredibly low price and are not asking for any information during the ordering process, then this should set off alarm bells with you. Some scammers will just skip over asking for things like your name, address, bank account number etc. because they simply don't want to collect it and keep records of your transaction. This can also happen in drop shipping scams with wholesalers who will skip these things as well. Also, if you aren't asked for any information and they just take your money right away, it's a very good sign that something isn't right with their business.
9. Their prices are too good to be true - If you find a company that has products listed at prices that seem too cheap to be true than this is a big warning sign. Wholesalers know that they can get away with using this tactic because people don't understand the value of their product or service and will often buy into it as a result. Some will tell you that they can sell their product to you at these prices because they have a very high volume or have created some sort of new technology. But the truth is that these are all lies, and if you see a deal is too good to be true then it probably is.
Final Thoughts
As you can see, there are many things to watch out for when dealing with wholesale suppliers. Even though there are plenty of legitimate wholesalers out there, your best bet for finding them is going to be through word of mouth or by doing your research online to find out which companies are legit and which ones aren't.
Conclusion
This is the end of my series on buying wholesale products on eBay. As you can see, there are some scammers out there and it's important to be careful and aware of any details that you hear about a certain company.