Top Five Categories Of Drop Shippers Scams
The statistics for the increase in the number of drop shippers scams is alarming! However, when you consider the recent increase in the number of online retailers and the increasing correspondence needed for reputed wholesalers, the whole story begins to make some sense. When many people need something urgently, there is a demand-supply mismatch. In the face of reducing supply chain opportunities, retailers are pretty much glad to accept any deal if it is somewhat favorable. This creates the perfect hunting ground for scamsters. They get their target market merchants who are desperate for some instant action.
Newer models like dropshipping have emerged in the wholesale business of late. Some retailers who have got reputable dropshippers are succeeding. But, the majority is lagging behind because of the increasing number of drop shippers scams. Here is a look at some of them:
Fees and Rate Scams: Under the dropshipping model, a dropshipper helps you get rid of inventory management as well as operating costs. Of course, they expect to receive some compensation for the extra value that they add. This compensation is usually in the form of fees or increased prices. It is up to the dropshipper whether they want to charge a fixed fee or cover the increase in their rates. There are many dropshippers out there that charge you both! Now, usually retailers that are new to the trade enter these agreements. To make matters worse, these agreements are contract bound, and there is an exit fee as well. So, you get stuck and, in many cases, end up working for them, selling their stuff for free. These are blatant white-collar drop shipper’s scams.
The Steal Scam: There are drop shippers scams that target the more experienced and veteran retailers too! Instead of higher prices, these scamsters use lower prices to lure their customers in. Usually, the perpetrator will pose as a new dropshipper and offer a 5 to 10% discount. In the dropshipping industry, which is characterized by low margins and high turnover, this is substantial! They will execute these orders a few times and bear a loss while they win your confidence. When you are confident and place a big order, they will suddenly disappear with your money. Not only do you lose money but also customers because of such drop shippers’ scams. Therefore, it must be understood that experience is no substitute for due diligence.
Reputation Scam: As retailers, we get to know about dropshippers largely through the Internet. We look at drop shipper forums and read drop ship complaints and dropshippers reviews before we decide. But, guess what? All these sources can be manipulated. The real scam here is that the dropshipper does not pose as a newbie at all. Rather, they will pose as the experienced big guy in the business, and you will most likely request them to accept your business before they defraud you in one of the above ways.
Knowing about the various categories of drop shipper’s scams helps develop a mental model where you can detect them as soon as you see the pattern and avoid further losses.
To know more about drop shippers scams and read authentic dropshippers reviews written by authentic retailers, log onto www.dropshippersscams.co.uk.
Processing your request, Please wait....
