Yesterday, I blogged about how you can start a home-based business using the drop ship model where you don’t have to worry about actually handling the products. It’s such a great way to start a business that plenty of scams have been built up around it. Here are some common scams that anyone considering a Drop Ship Business should be aware of. Retail Drop Shippers – As mentioned yesterday, you need to have access to wholesale pricing in order to be competitive in your market. Just because a company calls themselves “wholesale” doesn’t necessarily mean they are. The proof is in the pricing – make sure the pricing is actual wholesale level pricing. Phony Lists – There are a lot of Drop Ship Supplier lists available for sale. Unfortunately, most are junk and even at that, are not kept up to date. The only list that I can genuinely vouch for is the World Wide Brands OneSource. These folks make a living by keeping their directory accurate and up-to-date and by constantly adding new genuine wholesale suppliers. Monthly or Annual Fees – Any time a supplier wants to charge a recurring fee to provide drop shipping services – move on to the next one! This is a red flag. Turnkey Drop Ship Businesses – Some businesses will try to sell you an ‘Out of the Box’ drop shipping solution. These usually include a website, some software, and a lot of ‘easy street’ promises. Usually there will be a recurring fee or a setup fee. I personally don’t believe there is any such thing a ‘turnkey’ business of any kind. Any business you start will require a lot of work on your part and there are no ‘out of the box’ businesses. According to World Wide Brands, “anyone who gets in between you and a real, factory-authorized Wholesaler is simply turning your order around to someone else, and taking a profit from it. That profit should you yours, not theirs!”. If you’re considering a drop ship business, do your homework first and be on the lookout for drop ship scams!