How to spot a drop shipping scam

Drop shipping can be a lifesaver for store owners looking to expand their product line without taking on more debt to fund inventory. The Drop shipping model is becoming more popular as work-from-home sellers and large global chains, like Walmart, take advantage of this highly-efficient, low-risk e-commerce framework.

However, like any thriving industry, there will be unscrupulous scam artists who try and take advantage of unsuspecting online sellers. Even the savviest retailers can become victims of drop shipping scam. That’s why it’s important to remain vigilant when selecting new drop shipping companies to do business with.

Here are a few characteristics to look out for so that you can protect your e-commerce business and avoid falling prey to drop shipping scams:

Why So Many New Users Get Fooled By Drop shipping Scam

Middlemen and scam programs are masters at search engine optimization marketing. So, just because you search a particular keyword or phrase and a website appears at the top of your search results doesn’t mean that website is necessarily legitimate. A Middleman can hide a source and fraudulently portray themselves as the actual supplier.

You may be surprised to learn that most true supplier programs don’t include the term “drop ship” in their title, URL, or even most of their keywords. Instead, they are usually a bulk wholesale supplier for dealers and offer the drop ship program as an additional service option. They can also add their drop ship services to support other wholesale purchases on your current website.

You should search for a “wholesale supplier” and avoid websites that advertise drop shipping as their sole or main focus. Middleman programs typically rank higher on search engines for drop ship terms.

Watch Out for Drop Ship Websites with No Contact Information

A legitimate drop shipping website should have plenty of contact information available. In addition to a web address, the company should provide a physical location, phone number, and email address.

A physical location must be listed since this is where your items will be shipped. There is no reason why any legitimate wholesale distributor would need to keep this information hidden or make it difficult to find on their website.

You should also look up the address on online directory sites like Google Maps and Yellow Pages. This will allow you to cross-reference the contact information provided by the supplier.

 Be weary of Companies Promising Big Money and Quick Profits

There’s no doubt that drop shipping is a great way to make money. However, you should beware of working with any company that claims you can make big profits with very little work involved.

Middleman and scam programs often have you pay their fee upfront or pay monthly costs and encourage users to sign up for “expert” coaching sessions. Avoid these sites like the plague!

There are no shortcuts when it comes to finding success with drop shipping. You will have to grow your business with good old fashioned hard work.

Choose a Distributor You can Trust

Overflo has been serving businesses on the East Coast for more than 30 years. As a premier public warehousing and distribution center, we offer our customers convenience, flexibility, and affordable services to meet their needs. Consider us a one-stop shop for all of your order fulfillment needs from start to finish!