10 Drop shipping Scams and How to Avoid them

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The dropshipping industry is on a contentious rise. As per Statista, the global dropshipping market is forecasted to touch 476.1 billion dollars by 2026. This digital era has made it simpler than ever to start a dropshipping business. But with the rise of e-Commerce, there are also new opportunities for scammers to take advantage of unsuspecting entrepreneurs. So, if you’re just starting your new business, drop shipping scams can push you down.

This sounds like a great way to do business, but there are a few things you need to watch out for. In this blog post, we’ll go through some of the most common dropshipping scams and how to avoid them. But before discussing these scams, let’s talk about “is dropshipping a scam?”

Is Dropshipping a Scam?

Dropshipping is not a scam at all, but some evil-minded people can trick you with drop shipping scams to steal your money and ruin your business. As far as the legitimacy of the business is concerned, the long-lasting boom of the market is itself the answer. According to multiple forecasting platforms, this industry would secure a CAGR of 32 percent between 2021 and 2026.

Let’s delve into some of the most frequent drop shipping scams so you can avoid them beforehand.

Common Drop shipping Scams and Their Solutions

1. The Supplier doesn’t Exist

One of the most common dropshipping scams is when the supplier doesn’t exist. The retailer will take orders from customers, but when it comes time to ship the product, there’s no one to fulfill the order. To avoid such drop shipping scams, make sure you do your research before partnering with a supplier. Read reviews, and get in touch with other retailers who have used the supplier. Also, Read guides on how to choose the best dropship supplier.

2. The Product is never Delivered

One of the most well-known drop shipping scams happens when the product is never delivered. It can happen for a few reasons. Maybe the supplier doesn’t have the product in stock or never intended to ship the product. You can stay away from this by getting in touch with the supplier before taking any orders.

Ask them about their shipping times, and make sure you have a way to track the shipment. According to research, 66% of online buyers go with the seller who provides the finest shipping options.

3. The Product is Fake

Some dropshippers send fake products. It can happen when the retailer partners with a supplier who sells counterfeit goods. To avoid such drop shipping scams, make sure you do your research before you buy any products from a supplier. Check for reviews and red flags like misspellings and inaccurate product descriptions.

4. The Price is too Good to be True

One of the main red-flagged drop shipping scams happens when the price is too good to be true. If a product is offered at a significantly lower cost than other retailers, there’s a good chance the product is fake or of poor quality. To avoid this scam, you should compare prices before you buy anything. And if the price seems shady, you know what to do.

5. You’re Asked to Pay Upfront

Another red flag of a dropshipping scam is when the retailer asks you to pay for the product before it’s shipped. That’s a big red flag, and you should never do it. To circumvent this, ensure you only ever pay for a product after it’s shipped. And if you’re asked to pay upfront, walk away from the deal.

6. The Return Policy is Non-existent

One of the worst things about dropshipping scams is that it’s often difficult to get your money back. That’s because the retailer usually doesn’t have the product in stock, so they can’t issue a refund. You can avoid this by buying from a retailer that has a clear return policy. And if you’re not satisfied with a product, don’t hesitate to call customer support and ask for a return.

7. You’re Pressured to buy more Products

The retailer might pressure you to buy more products. They do this by offering a discount on your next purchase or threatening to cancel your order if you don’t buy more products. You should only buy what you need. And if you’re pressured to buy more, don’t do it.

The best way to avoid drop shipping scams is to be aware of the most common scams. If you’re unsure about a deal, perform your research before buying it. Don’t hesitate to contact customer service and ask for a refund.

8. The “Get Rich Quick” Scam

Another common dropshipping scam is the “get rich quick” scam. It works like this: you’ll be approached by someone claiming to be an expert drop shipper who knows the “ultimate formula for success.” You’ll be informed how the method can assist you in earning hundreds of dollars and reaching your financial goals.

The catch is that you need to pay a small fee to learn the formula. Of course, this is not true and is just a way for the person to get your money.

9. Agencies that Promise you Good Results

There is a multitude of agencies that claim to be able to guarantee you good results in advance. But, do they?

Agency scams have been around for years, and the internet has made it easier for them to operate. These agencies will promise the world and then deliver nothing but disappointment. They are often run by people who don’t know what they’re doing. They will take your money, create a poor-quality product and disappear before you can get your money back or ask for help.

Some of these agencies are not worth your time or money because they don’t offer guarantees. The only way to know if an agency is good is if they provide some type of guarantee in writing up front – like a refund policy or free revisions if you’re not happy with their work.

10.  Fraudulent Orders

Fraudulent orders are becoming a big problem for the e-commerce industry. The number of fraudulent orders is increasing yearly, leading to a loss of revenue for many businesses. As per Juniper Research report, eCommerce scam is expected to exceed $20 billion in 2021 as a result of fraudulent and shady activities.

It happens when a prospect places an order on an online store and pays for it, but instead of receiving the goods, they get a fake tracking number or never hear back from the seller again.

Wrapping Up!

Drop shipping can be a great way to start your own online business, but you must be aware of the scams.

If you’re looking for a reputable dropship supplier, check out MyDepot. We offer a wide range of furniture-related products, fast shipping, and great prices. Plus, we have a no-risk money-back guarantee, so you can be sure you’re getting a great product. Don’t let scams ruin your dropshipping journey.

Be aware of the scams out there, and take steps to avoid them. With a little bit of vigilance, you can dropship without worry.

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