Wholesale Scams Online, Top Scams To Watch For!

There are Tons of Wholesale Scams Online!

I don’t know about you, but I get the impression that for every genuine wholesaler on the internet there are ten wholesale scam artists. There seems to be a global industry dedicated to ripping honest, hardworking, retailers off. They swoop on new internet sellers like a flock of vultures, fleecing them of every penny they can.

• They target people searching for “drop ship”, “dropshippers”, “sell online”, “wholesale products to sell on ebay” and “wholesale products to sell on Amazon” etc. and wait for you to fall for their traps.

Have you noticed how scammers web sites look very convincing? I’m sure, if they put the same effort into a genuine site the could make money without scamming people.

• You might think I’m exaggerating, but sites like WorldwideBrands have investigated ten’s of thousands of companies claiming to be genuine dropshippers and wholesalers and uncovered literally thousands of dropship scams and fake wholesalers.

So be very suspicious and very vigilant when trying to find genuine certified dropshippers and wholesalers on the internet! If you do decide to try to find good dropshippers and wholesalers on your own, then learn how to identify wholesale scams online before you waste any money on fake dropship wholesale suppliers!

Wholesale Scams Online, Top Scams to Watch for!

Wholesalers or Dropshippers Fees

Scam: A company who claims to be a “drop ship” or a “bulk wholesaler”, but has a none refundable “setup” or “membership” fee which you must pay before you get to see their “wholesale” product prices.

In reality, they have no intention of selling you any goods, they raise their so-called “wholesale” prices so high that you would never be able to compete in the marketplace. They just want the “setup” or “membership” fee.

Genuine: Real wholesale suppliers do not charge a setup, monthly, annual or membership fee just to do business with you. Some, such as SaleHoo, may charge an annual fee for providing you with ecommerce and hosting facilities (an online store).

• Note: A drop ship fee is a handling fee that gets tacked onto shipping. This nominal fee pays the supplier for re-packaging and shipping products on your behalf.

Rule: Companies that want you to pay a setup or membership fee should be AVOIDED at all cost!

Wholesale Middlemen

Scam: Wholesale middlemen are really cleaver scammers who want you to believe they are wholesale suppliers, when they are not. These scammers have a web site which is very convincing and contains possibly many hundreds if not thousands of product lines. They tell you they will drop ship for your online business for a modest (none refundable) account setup fee.

With your account setup, you send orders to this fake “drop shipper”. The fake “drop shipper” in turn places the order with the REAL wholesale dropship supplier who dropships the goods to your customer.

You pay more for the product because this middleman is taking his “cut” of the profits by marking up the price to you. You lose profits that should be yours.

Genuine: Real certified dropshippers WANT YOU TO MAKE MONEY. They need good retailers (you) selling their products. They know that in order for you to make sales you have to have competitive prices.

• Real Certified Dropshippers work directly with the Manufacturer, order in bulk and give true wholesale prices as a result.
• Real drop shippers DO NOT inflate wholesale prices.
• Real dropshippers stock inventory and ship from their own warehouse.
• Real dropshippers are wholesalers who also dropship.

Rule: Constantly, research your suppliers. If fake “drop shipper” can find these genuine wholesale dropship suppliers, so can you. Be wary of “below-wholesale” claims, they are usually lies.

Wholesaler & Dropship Review Sites with Hidden Agendas

Scam: This scam has been around many years. A company puts up a website claiming to “independently review” different Wholesale Directories and sources for Drop Shippers. In reality, the company is a Wholesale Product Sourcing Company themselves and always gives their own company the best review (obviously).

Products that get the “Top Reviews” on these sites are usually the products that pay the “Review Site” owner the highest commission! It doesn’t matter that the products are just plain rubbish. There are very few honest review sites where the owners do their review to the best of their abilities.

Rule: Research, research, research. Be wary, exercise due diligence.

Supplier Directories

Scam: Beware the “Ultimate list of drop ship suppliers and bulk wholesalers”.

These lists and “Online Directories” of drop shippers and bulk wholesalers have been circulating so long that most of the companies on the lists do not even exist any more (if they ever did). You’ll find these lists on eBay, Craigslist and many other auction and classified sites.

Rule: Don’t waste your money on supplier directories just do your own research. After all, when you get the list, you’ll still have to research the companies anyway.

• If you want a “current” list of drop ship companies and bulk wholesalers just go to a search engine and type in “wholesale”. Now copy the first 500 results you get. That’ll be $10 please!

Wholesale Scams Online Conclusion

There are far more wholesale scams online than there are legitimate drop shippers and bulk suppliers so be very careful. Really do your due diligence with any service claiming to offer wholesale, dropshipping and ecommerce services before you spend any money.

• Final tip: Is it a new website? Most of the crooked wholesale websites have only been established for months instead of years. Check the WHOIS database to find out exactly how long the website has been in existence.

If you’re interested in using a Directory of Certified Wholesalers, need a legitimate Dropshipping Company or Ecommerce Store then see my article, Recommended Drop Shippers.

One of the biggest mistakes you can make when trying to sell products on eBay, ebid, Amazon or in your own online store is accidentally connecting your business with a fake dropship wholesaler. Here’s hoping you don’t get scammed and good luck in your ventures.

• Have you been tricked by a wholesale scam? Tell us about it!