Because so many people dream of starting their own store and don’t have the funds to buy inventory upfront, there are a lot of scammers that prey on those people.
Fortunately, these places are usually easy to spot. Here are a few ways you can spot the scams and avoid them.
Monthly Fees – Stay away from companies that require a monthly fee for “membership”. Legitimate dropshippers will never charge you a monthly fee for access. Often, companies that charge a monthly fee are really just directories of potential dropshippers. And if they claim to be a dropshipper rather than a directory, they are not an honest company.
Retail Prices – Be sure to check out the company’s prices to ensure they are lower than retail. If they are selling at retail, you should avoid them.
Selling to the Public – If a dropshipper is legitimate, they will usually require you to apply for a wholesale account and be approved. If they sell directly to the public, they are really just a retailer masquerading as a wholesale dropshipper.
There are many reputable dropshippers out there. Just be aware that scams exist, and be careful about which companies you do business with.