How to Avoid Dropshipping Scams

Sharline Shaw

The internet has changed the way a retailer works, and credit goes to companies like Alibaba, Amazon, or eBay.

Now you can get the desired product at the lowest price at just one click.

But many people encounter dropshipping scams while doing routine shopping on the internet. Scammers use various tricks to get the attention of the audience.

They may offer goods at the lowest price, free shipment, or can provide you with branded products.

And in the end, all that you will lose is your money and your customers.

So, in this article, a guideline has been provided. It will help you to avoid dropshipping scams and guide you on how to find reliable dropshippers.

dropshipping scams

The Truth About Dropshipping

Dropshipping is an order fulfillment method, where you do not need to keep the products in stock. Stores sell the products and transfer the order to the supplier, who ships the products to the consumer.

Dropshipping seems a straightforward and convenient way to make money. However, unlike it dropshipping is not a get rich quick scheme. Here both aspects of dropshipping, i.e., good and bad, have been described.

· The Good

Dropshipping is an attractive business as it offers a variety of goods with convenience at a low price with low risk. The following are the five good things that every e-commerce retailor should consider before dropshipping.

Minimizes Startup Risks

  • No startup cost is required. You will pay the money just after receiving the inventory. So, if your business does not pan out, the only money you will lose is what you paid to get your website.
  • Your business is at less risk of loss of revenue as a result of changes in the trends, because there is no such thing as excess inventory.
  • Lower volume niche products can be offered with popular best sellers.

Lowers Product Costs

  • New products are less expensive or cheap at the launch, as they don’t require an investment before they can be sold.
  • The dropshipper can get products at a lower price from the wholesalers and then resell them to consumers so they can get high profit.
  • Furthermore, only a few numbers of products get damages during dropshipping and which can be returned to merchants. So, you are on the safe side in every situation.

Lower Storage And Logistics Costs

  • In dropshipping a retail or storage facility is not needed, you can handle the whole of your business only through the website
  • You can also use your own labels, and in this way, customers will not be able to know that either you are a wholesaler or a dropshipper.

A Broad Product Offering

In dropshipping, you can offer a large variety of goods. Indeed, dropshipping provides you a platform where you can sell anything you want.

This would not be possible if you run a physical store. You can sell all those products through dropshipping, which are not easier to sell, generally like large products or perishable products.

Suggested reading:Best Dropshipping Products: Ultimate Guide 2020

Flexibility

The dropshipping model offers flexibility like dropshipper can run the business from anywhere else as long as they are connected to the internet.  Dropshippers can communicate directly with the suppliers and consumers even at the same time.

It gives flexibility to the dropshippers, as they can engage several wholesalers at a time. Furthermore, you can attend many customers at the same time. It is beneficial for merchants, too, as they can get more flexibility, as there is more product movement.

Dropshipping

· The Bad

Before you put all of your money into the dropshipping business, check out these hard truths about dropshipping; no one talks about it.

Hard To Obtain Profit

As you do not need to store or manage the inventory, the overhead is low, but so are the returns. At every sale, most of that money goes to the supplier. And you get a minimal amount. So, it means you need to do a lot of business to stay afloat.

The amount you get in returns is hardly enough to cover your expenses. Like an advertisement, managing sales orders, maintaining your site, and covering your office hours. In this situation, dropshipping can be a good option if you take it as a side business.

Your profit margin is highly determined by your traffic. If you are going to build an e-commerce business, you will have to struggle for a long time to get permanent clients.

Plus, dropshipping demands a lot of work. Dropshippers have to deal with wholesale suppliers, order processing, returns, and customer services.

Dropshipping can only be a good source of income if you already have a regular source of traffic.

Trying To Build A Brand

Dropshippers should understand that credit of their work goes to someone else. Whether your product is so amazing, but the customer is going to focus on the product’s brand. Customers will never appreciate your services or shopping experience that they have in your store.

Branding is a crucial e-commerce business, and shoppers used to prefer their favorite stores or brands. You will need to get a high-quality brand.

Well, without the customer’s loyalty, you are not going to get regular traffic needed for your dropshipping business.

Branding оf Prоduсtѕ

Highly Competitive

A very little capital is needed to start the dropshipping business; the low barrier at entry means a lot of competition too.

Many well-renowned companies offer goods at the lowest prices. It means various numbers of competitors could be selling the exact product in the market as yours. If you are going to your business, you will need to cut down the cost prices.

Well, as customers can buy precisely the same thing from another store, then why would they buy from you? In this situation, you may offer some attractive deals. So, consistent traffic can be obtained at your store.

No Control Over Supply-Chain

In dropshipping, you are at the mercy of your supplier. You are the one who still talks to the customer. Furthermore, if customer complaints about product quality ask for returns or demand a speedy fulfillment, you will have to address all these problems by yourself.

Above all, there can be a delay in communication. The dropper goes back and forth between the customer and the supplier. If anyone of them answers slowly, a communication gap can occur and due to which problems may take longer to get fixed.

Legal Liability Issues

Although this is not common for the dropshippers, it’s worth mentioning. There can be various suppliers who are not legitimate. Furthermore, they may use a trademark or logo of other brands illegally, and this happens more often.

Well, you can handle these situations by getting a Dropshipping Agreement Contract. To be on the safe side, you need to keep in mind that suppliers can be scammers before making any decision.

What Makes People Think That Dropshipping Is Scam?

The following are the reasons which make people think that dropshipping is a scam.

· Poor Quality Products

The quality of products is the foremost issue which most of the shoppers face while shopping online. In dropshipping, the dropshipper did not touch even a single product and just relied on the supplier for the quality of products. And remain unaware of the quality of the products. So, inferior quality products or damaged pieces can be delivered to consumers, which can make a big reason for the failure of the dropshipping business.

·Terrible Shipping Times

The shipping times depend on the product you are going to purchase. In dropshipping, you cannot offer fast delivery like other websites.

The dropshipper has to do nothing with manufacturing and looks towards the supplier for the product. It may delay the shipment up to several weeks. Well, the customer cannot wait for his long and will try to shop from any other store.

If you stock your products, it will decrease the time of shipment. While when you run a dropshipping business, it may take 30 to 60 days to deliver the product.

The delayed delivery of products can affect your business as costumers can give negative feedback. So, customers may consider you a scam.

Terrible Shipping Times

· Complete Lack Of Customer Focus

Without customers, your business is a failure. And for the success of your business, you need to maintain good customer relationships.

Try to satisfy the needs of the consumer. Only consumers can make it possible for your business to exist or grow.

Being a dropshipper, you need to provide all the products according to consumer’s demands and needs. You can select trendy products.

Businesses that focus on their consumer’s needs can make it possible for companies to exist. You should analyze the requirements of customers and try to fulfill them.

Secondly, create offers that will develop a long term relationship with the customers. Create opportunities for the consumers; otherwise, they will consider you a scam.

· Counterfeit Goods

Counterfeit goods are fake products, which have a logo or label of a particular brand. The item may appear safe, but it is sold illegally. So, the consumer is not buying the products from the brand owner.

Top counterfeit products include designer bags, garments, watches, electrical items, cosmetics, clothing, and toys.

Counterfeit goods can be a way to massive profit for the dropshipper, but it is a scam for the consumer. The dropshipper will try to hide his identity and will show himself the real manufacturer.

So, you need to check the supplier’s details and product reviews. So, you can avoid the scams.

Counterfeit Goods

Some Dropshipping Scams You May Suffer

The internet has radically changed the working of retailers. Now you can shop online and can get reliable products at the lowest possible prices.

But this cannot be the case every time. You can encounter many scammers who will try to cheat you. The list of dropshipping scams has been provided here, you can have a look over them, so you can avoid them while shopping online.

· Items With A Low Price May Be Fake

The supplier can provide your goods at a low price, and it is an excellent opportunity to earn a profit. The supplier will offer you products at a lower price only if you are buying in bulk or importing from China. In a few cases, you can get a single piece at the factory rate. It can be surprising, though.

It can be a trick of scammers. They are providing your product at low prices as its quality is low. In online shopping, you cannot touch the product or cannot check its condition.

The scammers may get benefit from it and provide you shoddy quality goods. It is the most common type of scamming in the dropshipping business.

· Brand Products Without Official Authorization Are Counterfeit

Sometimes you can get the branded product without official authorization; it means the product is counterfeit.

Sometimes the dropshipper can supply the products with its labels or stickers. It is illegal, as you are selling the products without the permission of the owner, but is a scam at the same time.

· “Free Shipping” For Expensive Items May Be A Scam

In online shopping, you can buy the products from any part of the world. But the only problem you will face is dropshipping cost and time.

You are importing product from another country, which is several miles away from your land. So, you may have to pay high charges for the shipment.

Opposite to it, few stores may offer you free shipment all over the world. It can a way of scamming. The dealer may provide you with free shipping just to catch your attention, and late on, you can get a damaged or low-quality product.

Free Shipping” For Expensive Items

· Customs And Import Duties May Be Charged

in the process of dropshipping, the buyer did not pay for the customs or other charges while importing the goods. It is the duty of the dropshipper.

But these days, the dropshippers usually ask for the extra costs. It can be another way of scamming, dropshipper will charge you extra to increase the profit margin.

How To Avoid Dropshipping Scam?

Dropshipping can be a fantastic experience for dropshipper and buyers. You can get the required product at a low price and can get several benefits.

But side by side there can be scammers, who cheat you to just make money for them. Here some ways have been described that you can follow to avoid the dropshipping scams.

· Only Use “ePacket” or Well-Known Shipping Services

These kinds of scams happen online. The scammers may offer you low freight rates. So, before finalizing your deals, try to search the shipping charges, it will help you to choose the right shipping services.

Sometimes you may contact a fake dropshipping site, as they are running a website with a similar name if a legitimate company. In this situation, you need to identify the authentic site accurately.

ePacket

· Never Pay a Monthly or Annual Fee

The startup cost for dropshipping is quite low, and it is the only feature that attracts the dropshippers. The only thing you will need is just an account on a dropshipping site and a supplier.

In several cases, they may ask you for a monthly fee or annual charges. Do not pay attention and money to them. They can be scammers, just earning for their selves.

· Only Choose Supplier With Exceptional Feedback

Before dropshipping, you can search for the supplier. Try to read all the comments and feedback of the buyers on the website.

You need to choose the one which has high star ratings and has most of the positive feedback. They can be the most reliable and trustworthy suppliers.

· Test Purchase a Product First

Inferior quality products, damaged pieces, these are the widespread problems you may face. So, you need to order a test piece before you demand the bulk quantity. It will help you to ensure the high quality of products.

Some Best Dropshipping Product Ideas:

Dropshipping is the easiest way to enter the online selling industry. Well, unfortunately, very few people join the list of successful dropshippers. And most of the time, this happens due to the selection of the worst product for dropshipping.

Finding the best dropshipping product can make you a successful dropshipper. There are so many products that you can sell online.

But the selection of one product can be a tough decision. Once you have selected the best product, start selling it online, and earn money.

· Tote Bags

The handbag and purse industry is increasing and astounding $139 billion in revenue. It has shown continuous growth at a rate of 5.3% annually.

The handbag market possesses an extensive range of designs and styles, as from backpacks to wallets. So, in short, it can be said there is a huge profit margin in building the handbags business.

Due to a diverse number of styles and colors, it sounds more attractive to dropship rather than to wholesale them. You can offer a wide range of bags for your customers. It can be a good option as a dropshipping business for you, as it allows selling up to 30,000 products per day.

Furthermore, as your stores grow, you can also offer a variety of other products like sunglasses, shoes, or jewelry.

Tote Bags

· Novelty T-Shirts

By choosing t-shirts for your dropshipping business, you are going to earn up to ten million dollars annually. And for that, you need to select the best dropshipping service, which depends on several factors, like quality standards, location, and printing needs.

Like other products, t-shirts also come with different variations. Soma people demand print on T-shirts, and they are highly in demand.

So, you can offer on-demand prints and can also introduce many other new designs that may attract the audience.

· Funny Coffee Mugs

As a successful dropshipper, you need to select the dropshipping products wisely. And it can be a funny coffee mug too. Everybody loves a fun cup for tea or coffee.

The mug may have an inspiring quote, or it can have a shape of a unicorn. Whatever will be the requirement of the customer, you are going to sell the mugs in any case.

Coffee is a highly consumed drink all over the world, and therefore a lot of mugs are bought every year. That’s why; coffee mug store can be a profitable little dropshipping business for you.

Furthermore, mugs make great gifts for birthday parties and other festivals too. Being a store owner, you can offer a wide range of mugs; it will help you attract a wide range of audiences. You can also sell personalized mugs.

Funny Coffee Mugs

· Motivational Bookmarks

From 2018 to present, the book industry has seen a 1.3% rise in sales. And more than 696 million books have been sold yet. Surprisingly, in this digital era, physical books are growing amazingly. The demand for bookmarks also increases as the demand for books increase.

Bookmarks are very helpful, and you need them badly while reading. But to make them attractive, you can design the in several different ways, and one of them is to write motivational and inspiring quotes on them.

At the same time, some dropshippers may also offer bookmarks as required accessories with the books.

· Inexpensive Watches Or Jewelry

Each year almost 1.2 billion watches are sold every year all over the world. You can offer a wide range of products, like smartwatches, field watches, dive watches, dress watches, or aviator watches. Well, above all, watches at a lower price can be a choice of everyone.

You can select watches as a dropshipping business, as it has a lot of room for growth. After establishing a successful business, you can also add many more related products such as cufflinks, belts, and other accessories. The cost of watches is low, which allows you to run a profitable business quickly and easily.

The global jewelry industry is expected to be worth 250 billion dollars by 2020. And surprisingly, tremendous growth in online jewelry sales has been noticed. Jewelry is part of human history, and it has been in use since the dawn of humanity. Well, it has become more popular and versatile with time.

The traditional items like necklaces, earrings, or rings are high in demand. Everyone tries to offer new styles and trendy designs, which attract shoppers.

It is a fact that jewelry is not going away and is expected to grow in popularity. So, by offering new designs at economical prices, you can set a successful business.

It is the best option for you if you are passionate about fashion, style, and jewelry.

· Marketing Merchandise

Marketing merchandise is a unique choice for dropshipping in 2020. There are so many products that you can select to use for marketing merchandise. You can choose t-shirts, key chains, or pens for this purpose.

The only things you will require in this business will the prints or logos of different brands. And after selecting these, you are ready to start your business.

How To Find Reliable Dropshipping Suppliers For Your Business?

If you have plans to start an e-commerce business without the need to store the inventory, dropshipping is the way to go. In the dropshipping business, you will need a continuous supply of stock by a reliable supplier.

All the dropshipping companies have their advantages and disadvantages. The online business must evaluate the various dropshippers based on their specific needs.

Here an overview of different dropshipping suppliers has been provided. You can check it to select the best supplier for your business.

· Leeline Sourcing

Leeline sourcing can be the best partner in your dropshipping business. The company can find reliable dropshipping suppliers for you. Furthermore, Leeline sourcing can also find hot dropshipping products for you.

The company also audits the factory to ensure the quality of products. With Leeline Sourcing, you can import Chinese products at a low price and can build your brand.

​LeelineSourcing

· Wholesale2B

It is a comprehensive directory of dropshippers and bulk distributors. The company updates its list with all new suppliers across all the niches.

They also certify that each supplier is reputable and reliable. You can receive access to this directory for an onetime fee of 249 dollars.

Wholesale2B

· Sunrise Wholesale

Sunrise Wholesale is a dropshipper and general wholesaler. It offers you more than 15,000 products within different categories like home décor, fitness, sports, garden decoration, jewelry, and many more.

It is connected to Amazon, eBay, Shopify, BigCommerce, and many more. The membership fee is $29.95 per month or $99 a year.

Sunrise Wholesale

· National Dropshippers

National dropshipper is a wholesale product source that offers over 250,000 products. The company generally offers prices 50% below MSRP.

You can get a variety of products here.everything is available here like from the pocket knives to the umbrellas to the barbeque grills.  You will have to 19.99 dollars per month or 2.49 dollars as per order.

National Dropshippers

Frequently Asked Questions

Nowadays, dropshipping has become a hot topic and business model that attracts a large number of retailers online. Here, most frequently asked questions related to dropshipping, and their answers have been represented here.

· How Successful Is Dropshipping?

Yes, dropshipping is still a successful way to earn in 2020. Dropshipping gives you high-quality products at a low price, which offers high-profit margins. You can receive thousands of dollars within a month with the help of dropshipping.

· Do Dropshippers Ship Internationally?

You can start a reliable business in any part of the world. Dropshipping is has grown as an international business over the years, where you provide goods all over the world.

Shipping is a part of dropshipping and being an international businessman, and you need to deliver products everywhere. And it is essential for the development and success of your business.

· Is Dropshipping Unethical?

Dropshipping is not unethical or a scam. Dropshipping is simply a method of fulfillment. The dropshipper sends all the products directly to the consumer.

It is okay not to store the inventory, as it is not possible to store large objects. It can be expensive to save such purposes.

There are just a few factors that make it unethical. Like it can become illegal or immoral if you dropship the objects with your label or logo, or drop ship damaged or low-quality products.

Suggested reading:Is dropshipping legit?

· Why Do Most Dropshippers Fail?

Dropshippers face failure because of many reasons. Below is a list of ideas for the inability of dropshipping.

  1. Selection of the wrong niche
  2. Lack of patience and persistence
  3. Lack of investment or resources
  4. Selection of the wrong platform
  5. Bad customer support
  6. Delayed shipping
  7. Inconsistency in managing business
  8. Unattractive web designs.

· How Do I Start A Dropshipping Business?

Starting the dropshipping business can be a great option. You can sell your products directly to the consumers at your prices and can market your brand. The following are the steps you will take to start your dropshipping business.

  1. Choosing a dropshipping business idea
  2. Competitor analysis
  3. Find the supplier
  4. Build the dropshipping store
  5. Do the marketing of your dropshipping business whatever you have
  6. Start delivering the products to your customers

 Suggested reading:Dropshipping In 2020: How to Start a Dropshipping Business?

Can You Get Rich With Dropshipping?

You can search for ways to get rich, and surprisingly, you will find that dropshipping is on the top. According to Google Trends, dropshipping is gaining popularity rapidly, which shows its viability as a way to make money online.

You can earn $6,667 in two months and can mark your earnings up to six figures just with dropshipping. So, this is proof that dropshipping is a real way to make money.

The best way to make money online is dropshipping.  And most of the entrepreneurs have been focusing on marketing strategies like running a Facebook ad, promotion of your products/store through social media, and sending direct messages to potential customers.

All of these can promote your business, which can assure you strong earnings through dropshipping.

How Leeline Sourcing Helps You Avoid Getting Scammed From Dropshipping.

Leeline sourcing helps you in several ways to avoid scams, and all those ways are under given.

  • When you are going to buy from any website, send a link to the Leeline Sourcing. Leeline Sourcing will go through the vendors’ profile to make sure that they are a genuine exporter.
  • The team of Leeline sourcing can check each item for you before dropshipping. The company does so to ensure the high quality of products.
  • Beside it, they can also look after the shipping process and can let you know about the whole process.

Final Thoughts on Dropshipping Scams

No doubt, there is a room for dropshipping scams here. You can find several legitimate companies and supply products of high quality all over the world.  And most of the time, you may get a Chinese company.

The problems come when you buy from a small merchant. You can find these suppliers on social media very often.

It is a matter of fact that dropshipping its self is not a scam. The internet and dropshipping make it easier for scammers to sell inferior quality products.

Whenever you attempted to buy products online or start your own dropshipping business, caution is the only option you have. As in dropshipping, you are always at risk, and you may lose money just because of dropshipping scams.

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sharline

Article by:

Sharline Shaw

Hey I'm Sharline, the founder of Leeline Sourcing. With 10 years of experience in the field of sourcing in China, we help 2000+ clients import from China,Alibaba,1688 to Amazon FBA or shopify. If you have any questions about sourcing , pls feel free to contact us.