Dropshipping is an online e-commerce model where a third party holds the products and delivers them directly to the customers. A seller doesn’t need to store the inventory by himself and source it to a third party.
Simply speaking, dropshipping is a model where, as a seller, you don’t have the inventory, and you outsource it to another third party. As a seller, you directly make the deal with the customer and then direct the other party to deliver the product.
But is dropshipping a scam? Is it a legitimate way to make money online or risky? In this article, we’ll explain Dropshipping scams and how to protect yourself.
Is Dropshipping a scam?
No, not really. The Dropshipping model is genuine and has gained much popularity in recent years.
The global market size of dropshipping was about $225.99 billion, with a compound growth annual rate of 23.4%.
Although it is a legal practice, many scammers and fraudsters can use this service to further their malicious activities.
Also read: Can you get scammed on Vivid seats?
Dropshipping scams explained
There are a few scams that may happen on Dropshipping platforms:
Counterfeit product quality
Some suppliers may sell fake or low-quality products that do not match the product description.
Deceptive samples
Some suppliers may send you flawless and awesome samples to earn your trust. But when you order an item, they will send you inferior products.
Fake gold scams
Many suppliers will claim they sell genuine gold products at quite low prices. It is a trap, and when a customer falls into it, they will send fake or inferior gold jewellery.
Seller disappearing after payments
Some suppliers may take your money, and when you contact them about the product details, you won’t be able to contact them ever again. The seller disappears from the scene.
Sales representative scams
In addition to dealing with unscrupulous suppliers, it’s essential to be vigilant against deceitful sales representatives. This often occurs when a sales rep is on the verge of leaving their position and plans to defraud you and the supplier.
These fraudulent sales reps typically dangle irresistibly low prices below market rates and request that you transfer funds to their accounts.
Get-rich-quick scams
Here’s how they typically work: You’ll receive an enticing offer from someone presenting as a seasoned drop shipper. They claim that this formula will make you earn substantial sums and swiftly achieve your income goals.
However, there’s a catch – you must pay a small fee to access this exclusive knowledge.
These are some shipping scams you may encounter while ordering on Dropshopping platforms like Aliexpress. There are other scams, including data theft, several hidden fees such as packaging fees and others, and asking for more shipping costs than usual.
Also read: What is mSpy? How does it work? Is it legit?
Tips to avoid Dropshipping scams
Now that we have understood the prevalent scams in the Dropshipping world let us understand how to avoid such scams in the future.
Always remember the best way to avoid Dropshipping scams is to do extensive research and exercise due diligence before selecting a seller and opting for a product to buy.
Here are some tips to avoid Dropshipping scams:
Do a thorough check of the supplier
The first step that you should take is to do a thorough background check of the supplier. You can check reviews, check the supplier’s website, ratings and other parameters before selecting the seller.
There are many third-party websites like Trustpilot and Scamadvisor where you can further assess the supplier’s trustworthiness.
Do a sample test before ordering
One thing that you can do before ordering the product is first to order samples of the product.
Once the seller sends you the product sample, you can test the sample as you like. You can also compare the sample with other products and product descriptions to assess whether the seller is true to his word or not.
Compare the sample to the pictures the seller shows on the website. This will also give you an idea about the seller’s reputation.
Use secure payment methods
When paying for your order, always use secure payment methods that can be traced online in case of fraud.
Do not entertain sellers who ask for cash or wire transfers, as there is no way to trace the money.
Avoid fairy tale deals
Some deals you regularly see on the Dropshipping platforms will feel like the deal of a lifetime.
This is a classic tactic used by scammers to lure unsuspecting customers. To avoid these scams, always use your common sense and apply some logic.
A little bit of thinking and deliberation go a long way in protecting you from the scams.
Document every detail of the transaction
The key to being safe and secure is to document every transaction detail. This includes all communications and money transfers, among others. It will help you if you have any legal trouble with the products.
Also read: Is Miracle Watt a scam?
