Reselling Business — Top Ways to Avoid Being Scammed by a Drop Shipper

1. Reselling Business — Top Ways to Avoid Being Scammed by a Drop Shipper Starting a reselling business is quite challenging for the uninitiated. Sadly, there are scammers in the industry, and they can be ruthless. For example, some buyers might “pay” for a product, only to send you a counterfeit check with the wrong amount. Then, they‟ll ask you to send the difference back—but not before withdrawing the transfer while you deal with a bounced check. Unfortunately, sometimes,a scammer might be closer to you than you realize. How to avoid dropshipping scams in the reselling business Dropshipping is a popular model for many eCommerce sellers because it allows them to sell products without holding inventory. Instead, the dropship supplier will buy the items from a third-party business and send the order straight to your customer. Don‟t worry—the dropshipping model is not a scam in itself. It‟s the ideal strategy for new reselling businesses, as it minimizes investment costs on inventory and warehouse space. However, some people try to take advantage of the system, and the most effective way to avoid becoming a victim of a scam is to be aware of them: „Dropshipping only‟ companies Legitimate drop shippers usually only offer the model as a secondary service. They mainly operate as wholesalers, supplying products in bulk to large retailers. So if you come across a business that only offers dropshipping, tread carefully because it might be a scam. It‟s better to look for wholesale suppliers rather than search for “drop shipper only” types of businesses. Fake addresses The best advantage of dropshipping is also its downfall. Because you‟re not keeping your inventory, you never know where your products come from before being sent to a customer. You must be cautious. Make sure to deal with a legitimate business with a real address. If a supplier doesn‟t list their address and contact information explicitly, they‟ll likely take your money and run. Upfront fees

2. Is the dropshipping supplier asking you to pay fees before purchasing a product? Beware— they may be scamming you. Reliable wholesalers rarely charge unnecessary fees, only asking you to pay for your first order. So if you encounter a “drop shipper” asking for annual or monthly payments, or account setup fees, don‟t fall for this scam.