Avoid The Pitfalls Of Dropshipping

There may be many top quality wholesalers available on the internet but there are just as many sites that are set up to scam sellers who are looking for a bargain. The problem is that it's becoming harder to spot them.

So how can you?

First don't jump to conclusions.

A supplier may be selling fakes of big name brands but this doesn’t necessarily mean he is out to scam you. There are many suppliers in China and other countries selling fakes, but as long as you realize what you are buying, that is not a problem in itself.

The supplier may say they can only accept Western union and wire transfers as payment. These are insecure payment methods, but for Chinese suppliers, these are often the only two options available as credit cards (and therefore Paypal) are almost impossible to get. You should always take the precaution of ordering only a small amount when dealing with a supplier who only takes Western Union and wire transfer for the first time, but many legitimate manufacturers and wholesalers use these methods out of necessity rather than because they are illegitimate.

Thes will probably be the two things you've been told to watch out for but if these don't prove that a company is a bad dropshipping wholesaler then what else can you look out for as warning signs.

Here are a few tips on things you should look out for-

1.No contact details listed on the website

2.When you call, the telephone is answered by an individual who does not identify himself on picking up the phone.

3.Parts of the text or images on their site are copies from other websites.

4.You are not asked for a business or tax number

5.Your contact becomes shifty when you ask for a product sample

6.Fake address – either it doesn’t exist or it exists in a poor or residential area.

7.When you place an order, the company claims they do not have any stock, but want to receive the money before ordering any in.

8.The company suddenly stop replying to your emails

Steps to Protecting Yourself

One way of testing whether the dropshipping wholesaler is a fly by night merchant is to check how long they have been around. Here's how you can find out plus a few other tips to help avoid the scam artists.

1.Go to www.coolwhois.com and search for the name of the website. A legitimate company will have been operating for over a year (at least!) and their expiration date will be for several years time. Most legitimate companies reserve their domain names for 3-5 years or more at a time.

2.Check that the website gives a full business name and a registration number.
Ring them to verify the phone number given is good, but don’t accept a mobile phone number as enough, all companies should have a land line number.

3. Copy and paste some text into Google. If it is copied from another site, you’ll soon discover it in the search results.

4.Ask for a photograph of the stock with the company logo in the background.

5.Use secure payment methods such as Escrow, Cod and Paypal Verified whenever possible.

6.Ask other sellers what their experiences have been with the company on forums.

All the tips above should help you be safer and more successful in your dropshipping wholesaling venture. I'd recommend a using a company who do all this for you and provide a good list of legitimate dropshipping wholesalers.

Click here for my recommended wholesale directory provider Salehoo