How to Spot and Avoid Fraudulent Dropshipping Suppliers

Dropshipping is a great business model. It’s simple, you don’t need to carry any inventory, and it’s perfect for new entrepreneurs. However, as with any business venture, there are risks. One of the biggest risks is dealing with fraudulent dropshipping suppliers.

Don’t fall victim. Here’s how to avoid the scams.

1. Avoid fake websites

It’s very easy to set up a website. It takes no more than an hour to set up a new website. However, it takes up to two years to really build a reputation on the web. That’s why there are so many fake websites out there. Fake websites are set up by scammers to trick you into giving them your money. These sites are often very similar to the real thing, but they’re not real. They may try to disguise themselves as drop-shippers, but they’re just trying to trick you.

A good way of avoiding scams is to ask around to friends. They may have heard about a site that seems dodgy. If something doesn’t smell right, it probably is. You can also ask friends if they’ve heard of a company that’s doing well in the market.

2. Look for Good Customer Service

Customer service is the most important thing when choosing a dropshipping supplier.

It’s easy to set up a website, but if you don’t have the ability to answer questions or resolve issues, it’s easy to fall victim to scams. Look for a drop-shipper with a good reputation. A good reputation is the best protection against scams and fraud. You can check if a dropshipping supplier is reputable by looking for the FCA/FSC logo on their products. These logos are just a guarantee that the company is authorized to sell the products they’re selling.

3. Look for Good Returns Policies

What if you made a mistake? You may want to return the products that you bought. However, if you bought products from a dropshipping supplier who is a scammer, you may have a problem. A good supplier should be able to handle returns. You can either return your products to the supplier or you can ship them back to the seller.

If the supplier is not able to handle returns, it is likely that they are involved in fraud or selling fake products.

4. If you are asking for a monthly fee, consider getting out of that relationship as soon as you can. Most wholesalers make money when you buy their products.

5. If you can’t buy wholesale at a reasonable price to the general public, then the retailers who sell to you are likely overcharging their customers, with no intention of passing on the savings to their clients.

6. People should beware any dropshipper who offers high profits. By the very nature of dropshipping, the profits are low — this is because you do not need a physical store to get a product. The profits are also low because you have to pay for the products yourself. The only way to make a profit is to sell higher-priced products than you pay for and so the higher the price, the lower the profit margin.

According to 84% of people who have used a website to sell products online, establishing a relationship with a dropshipping supplier was the biggest roadblock to setting up their business.