Dropshipping Disasters - How To Avoid Scam

The supplier is apprised of the order and they send the product directly to the customer. The customer pays the online retailer and the supplier is paid by the retailer. The retailer pays the supplier a wholesale price plus shipping cost. This is less than the amount they charge the customer, and the seller keeps the difference.

Due to the online nature of this business, dropshipping scams are common. Often sellers are sold poor quality products, or a product arrives at the customer's with missing accessories. Delays are common, but usually retailers consider themselves lucky if the product arrives at the customer's at all!

To avoid these dropshipping disasters, the seller should dropship with wholesalers who are honest and reliable. The internet is full of advertisements of hard-to-believe wholesale deals. Most of these deals never get the seller the promised rewards. Therefore, it is imperative that they create a wholesale list or find a wholesale list that offers business details of trustworthy suppliers.

Creating a Supplier List

Creating your own supplier list takes more time and effort than buying a prepared list. But it saves money. First, scour the internet for trade leads. Look at wholesaler websites and visit dropshipping forums. One of the most reliable places to find wholesale deals is an online directory. These lists are as good as "prepared" but you will still have to sort through the information to find the right wholesalers. An online directory can be searched by keyword, location, and business type (wholesaler, manufacturer, importer, distributor etc.)

One of the advantages of referring to these directories is that supplier details are verified. The site does not guarantee product quality or pricing; refer to the supplier website or eBay profile for that. What the wholesale directory does is check the trader address, phone number, and other contact details for authenticity. This is a big help to small sellers who do not have the funds and resources to travel to location for verification of trader information.

Don't give up on internet search engines. They often supply names and website details of genuine wholesalers. But selecting the good wholesaler from a bunch of bad ones takes some research. First, check if the company is registered with the Better Business Bureau. Unfortunately, this option is not available for suppliers outside North America.

A whois search is the best option, provided the supplier has provided website details and not just an email ID. Never contact people who do not give their official website address. A whois database reveals the ownership details of websites. Just go to any whois website and type in the name of the supplier website and check if the owner name matches the business name.

There are many free or inexpensive tools available to dropshipping businesses; use them to make your business secure and profitable.

About the Author:
Dropshipping scams are so common that unless you are getting a wholesale list from a verified directory, it is essential to probe the background of any supplier you find online.

Article Originally Published On: http://www.articlesnatch.com

Tags: dropshipping

, wholesale Deals

, wholesale list

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