Drop ship suppliers could be very helpful only if you were able to transact with a legitimate one. Because this is a growing trend in online business, there are numerous companies who claim themselves as ‘dropshipper.’ But in reality, they are bogus wholesalers or drop shippers who will just get money from innocent or beginner retailers. Here’s what they do:
They may claim that they are the biggest or most comprehensive supplier online since they offer thousands of products at a great variety. As a new retailer, your excitement will enable you to pay the site a visit and sign up. And then they will charge you a certain processing or account fee. They will send you the list of items and you will excitedly post them in your online store. After a few days, and months, you still haven’t sold a thing.
What happened then? You do your research only to find out that your prices are extremely different from the prices of other online sellers. And the worst thing is, you priced the items way higher because you got them at high cost too.
The blame should be pointed to the dropshipper. Yes they do have the items and they do deliver them but their system works differently than usual legitimate drop shippers. Such supplier works with other “real” drop shippers. They become the middle men and that’s the reason why they offer high wholesale prices. They will provide you with a list they created from the list they got from original drop shippers.
Such companies already got their mark-up price when you bought items from them and when you paid the processing fee; now they won’t care if you cannot sell items since they already got their profit from you. The best thing for you to do is go directly to the ‘real’ drop shipper.
Keep in mind that drop shippers should only ask a membership fee that is minimal and is valid for a long period of time. Question monthly dues and additional fees, they are most likely signs of scams. Do a research and be informed of the usual prices of items. If pretending dropshipping companies offer wholesale price at extremely low or very high costs, then that could be a sign that they are not to be trusted. Keep yourself informed and you’re sure to keep your business free from problems.
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