Drop Shipping Scams and Avoiding Them

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Drop Shipping Scams

Any company that charges you to become a members and any company that advertises that they drop ship I stay away from. The reason I stay away from these companies is that I’ve been drop shipping for seven years. I’ve started multiple seven figure business and I’ve never once paid for a drop ship account. I’ve been approved for hundreds of accounts no one’s ever asked me for money upfront.

Saturated Niches

They want to do business with you because they think you’re going to bring them more business in terms of sales, not because you’re going to pay them for a membership. So stay away from these drop ship directories. They also advertise to thousands of money hungry retailers so all of these niches are saturated. Everyone that joins is going to selling in the same niches, contacting the same suppliers, and really what the worst part is that they don’t enforce pricing policies like I spoke about earlier. So you’ll have those people making those 5% margins and you just won’t be able to compete with the marketplace. It’s just not worth it.

Real Supplier

Another thing that does not work is drop shipping on eBay and Amazon so you don’t want to try either. The reason is real supplier don’t allow it (they don’t want their products on those marketplaces) it lowers the value of their brands and they also have no pricing controls  no inventory control so if you’re selling on Amazon you want to control your inventory so if someone places an order you can ship it. If you don’t you’ll get negative feedback and you’re account will be messed up pretty quickly. So I do not recommend advertising on eBay or Amazon one because of profit margins and two because of no inventory control. So stay away from those two marketplaces. I do advertise on Amazon but I don’t sell on there.

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