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Article Title:
Get the Drop on Drop Shipping Scams

Article Description:
How to choose a reliable drop shipper.

Additional Article Information:
733 Words; formatted to 65 Characters per Line
Distribution Date and Time: Tue Apr  4 01:25:27 EDT 2006

Written By:     Paul Mroczka
Copyright:      2006
Contact Email:  mailto:[EMAIL PROTECTED]

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Get the Drop on Drop Shipping Scams
Copyright © 2006 Paul Mroczka
UK Dropship and Drop Shippers Portal

If you are an Internet retailer, a storefront retailer who also 
has a website, a mail order retailer or a catalogue company, you 
may find the concept of drop shipping attractive. After all, drop 
shipping eliminates the need to buy inventory, store it, and ship 
it out yourself. Working with a good manufacturer, importer or 
wholesaler that will drop ship offers numerous benefits, 
including low overhead costs and higher profit margins than you 
might realize through regular affiliate programs. The beauty of 
using such a service is that it allows you to focus time, 
resources, and energy on building and expanding your customer 
base and not on sending out products you have already sold. 

The drop shipping process involves four basic steps:

 - You advertise specific products and take orders for those 

 - Upon making the sale, you receive your money.

 - You then send the order along with the money for the wholesale 
   and shipping costs to the manufacturer, importer or wholesaler.

 - They ship the product directly to the customer.

It is a simple, efficient process. That is as long as you are 
working with a quality, trustworthy drop shipper. If you end up 
contracting with an unreliable company or a scam artist, your 
reputation, profit margin, and entire enterprise can suffer and 
be destroyed. When deciding which companies you will conduct 
business with, there are a few practices of which you should be 

Most often you will be looking to work with a few companies or 
perhaps even one company whose products you will represent and 
sell. In essence you are marketing specific goods with the 
resulting sales benefiting your company and the manufacturer, 
importer, or wholesaler.

With this in mind, you should never be required to purchase a 
membership in order to sell another company's products. The types 
of companies that charge such fees usually say they offer a 
complete array of goods backed up by a marketing department. They 
will even include your own e-commerce website that you can use to 
sell their items. Such turnkey businesses are replete with large 
initiation and setup costs, monthly membership fees, and other 
hidden expenses. Additionally, you are often only allowed to 
offer their products on their site.

Does anyone ever make a profit from these turnkey businesses? 
Yes, the people who sell them to unwitting retailers make large 
sums of money. Do not fall for this scam. The only fees you 
should ever be charged are those for the product and for shipping 
the product. Legitimate drop shippers may charge you a fee, which 
is however refundable once you have commenced trading.

Additionally, never pay a drop shipper a membership or license 
fee for the right to have them drop ship for you. The concept 
sounds ridiculous, and it should. It's another con. They are 
already making a profit from the effort you are putting into 
selling their product, why should you pay a license fee for the 
right to have them ship that product? Should you pay for the 
shipping? Of course, but that should be on a per item or shipment 
basis and no additional charges should apply.

There are also lists of bogus drop shippers that are sold to 
potential retailers. A legitimate business can spend hundreds of 
dollars on such lists, which are really names of middlemen posing 
as drop shippers. Contracting through these sham shippers will 
result in you paying much more than you should for your products.

You may also be tempted to buy relatively cheap lists of drop 
shippers. These lists are inexpensive because they contain out-
of-date and/or false information. When you try to contact the 
companies on the list, you will find that they have gone out of 
business or never even existed.

Finally, whatever companies you contract with, make sure that you 
have it in writing that the manufacturer, importer or wholesaler 
will not market to your customers. The customers you directly 
sell to and the drop shipper, through your order, ships to, 
belong to you and not them. You have done all of the ground and 
legwork to sell to your customers and usurping them is not an 
option open to your drop shipper. Any legitimate company will 
agree to and honor such a contract.

Be sure to ask companies about their drop shipping policies, 
including charges, length of time for delivery, return polices, 
and backordering procedure.

Paul Mroczka is chief editor at, a 
<a href="";>UK dropship and 
drop shippers portal</a> based in London, UK.



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