Tag Archives: retail

Drop Shipping Wholesalers: Don’t Get Scammed

Millions of people world wide run private online businesses that basically consist of a website where people will go to purchase products. These businesses may sell one item or a whole catalog of items however most do have one thing in common, they use drop shipping wholesalers. It’s important that you know that the people running these businesses are everyday people just like you and that when they started their online business did not have the space or the capital to invest in an entire stock inventory, which is where the drop shipping wholesalers came into play. These wholesalers usually have an entire inventory of products and will allow you to market and sell them for a profit. This system can be hugely beneficial to the small business person looking to make a little extra money but be wary. There are plenty of con artists out there ready to take your money and run. Here are a few tips to ensure that your experience with a drop shipping wholesaler is a positive one.

Do Your Research
The drop shipping process can really be beneficial. The company will basically act as your warehouse, taking your client orders, filling and shipping them directly to your customers for a cut of the sales. If you play your cards right you should have no expenses other than your web hosting and marketing fees. The customers will pay you and then you send their info to the wholesalers who take care of the rest. It is important that you know that when looking for a great wholesaler to really research your options to see which company is going to give you the best incentive for selling their product. If you think you have decided on a company, do a little extra digging on the web and with the Better Business Bureau to make sure they are legit. There are plenty of sites out there on the web that advertise a drop shipping program on their products that don’t actually exist and selling for them leaves you responsible to the client and may cause you to be responsible for refunding their purchase out of pocket.

Remember: You are a Seller NOT a Buyer

Many of these fake drop shipping wholesalers are always offering memberships into their programs and they do a great job of making these offers sell legitimate. This is just another way to steal your money and your customer’s money. When you work with a drop shipping wholesaler you will pay them a cut of your sales in exchange for using their inventory and shipping processes. So, if you are already paying for their services and selling their products to boot, how does it make any sense that you would have to pay them to let you sell the products in the first place. Never be afraid to say no, if your gut tells you that something isn’t right, chances are you are probably correct.

Protect Yourself

It never hurts to take that extra bit of precaution to ensure that the companies you work with and put your trust in are legitimate. Many sources will tell you that the best way to find a legitimate drop ship wholesaler is to ask around. Talk to other online business owners and see who they use and who they would recommend. Also, once you choose a company be sure that you have your service agreement in writing that states what both parties are responsible for. Also you may to consider asking the wholesaler to sign a document that prevents them from directly marketing to your customers before you start to sell for them.

Drop shipping can be a sticky business but there are many great wholesalers out there who are legitimate and helpful once you find them. Just always be sure to do extra research and to protect yourself before entering into any agreements or giving a company any of your money. That extra effort could indeed be what prevents you from losing a lot of money