In this blog post entitled Drop Ship Scams, I talked about a few scam techniques used to promote artificial drop shipping businesses. Some businesses promote themselves as drop ship wholesalers, but in reality are just providing the drop ship service and therefore are an extra ‘middle-person’ in the mix (which means you pay retail for the goods).
Here are 3 ‘red flags’ you can use to spot an artificial wholesaler.
Charges a recurring fee – Legitimate wholesalers do not charge recurring fees for their service. They may change a per-order drop ship fee to cover their cost of providing the service. They may even charge a charge a small administrative setup fee – this is OK. Monthly or annual recurring fees are not OK and are the hallmark of an artificial wholesaler.
Insufficient Information about the Company – Do you have trouble finding information about their company on their website? Is the website full of fluffy sounding marketing but lacking in actual information about the company (such as addresses and phone number)?
Setup Process Too Easy – How easy is the setup process? If they don’t ask for a business license, tax ID, or resale license, you are probably looking at an artificial wholesaler. Real wholesalers will ask for one or more of these documents before doing business with you.
Fake wholesaler drop shippers are in the business of making ‘easy money’. Don’t hand your hard earned money over to them.