How To Tell A Drop Ship Wholesaler Scam - 3 Red Flags

Drop shipping is all the rage and has been for quite some time… even before ebay. The popularity of ebay though has driven the market berserk and caused some people to choose the easy way and PRETEND to be a dropship wholesaler when they’re really not.

They then take YOUR order and pass it along to the REAL source of the product after taking their cut.

This means they reap the profits of all your marketing efforts and quickly vanish leaving you holding the bag if they’re completely shady.

Here are 3 Red Flags to tell a middle man from the real deal…

From The Home Based Business Blog…

Charges a recurring fee - Legitimate wholesalers do not charge recurring fees for their service. They may change a per-order drop ship fee to cover their cost of providing the service. They may even charge a charge a small administrative setup fee - this is OK. Monthly or annual recurring fees are not OK and are the hallmark of an artificial wholesaler.

Insufficient Information about the Company - Do you have trouble finding information about their company on their website? Is the website full of fluffy sounding marketing but lacking in actual information about the company (such as addresses and phone number)?

Setup Process Too Easy - How easy is the setup process? If they don’t ask for a business license, tax ID, or resale license, you are probably looking at an artificial wholesaler. Real wholesalers will ask for one or more of these documents before doing business with you.