Since dropshipping has become something of a buzzword around eBay in recent years, it should come as no surprise that this has attracted scammers. Thankfully, those who would prey on budding dropshippers don't bother being very subtle about their scams. Let's face it: they think you're stupid and conduct themselves as such.
In short, you should never, ever, have to pay money up front for getting product listings or the names of dropshipping-friendly companies that you can do business with. Just because they don't typically advertise online or make it a point to become well-known among consumers doesn't mean that legitimate manufacturers and wholesalers want to chase your business away. Remember, the whole point of this is to not put a bunch of money up front.
One giveaway of a scammer is web-copy or sales letters that promise particularly fast or high rates of return. These "get-rich-quick" schemes are just that - schemes. There are a few legitimate companies that do specialize in aggregating lists and directories of companies that are willing to do dropshipping to your customers. Such organizations are more interested in your relative success than promising you "thousands" of products to stock your store with or "fast, easy money you can make in your pajamas." If you feel you're being fed a line of bull about quick riches, you can be reasonably certain there's a scam involved.
Some very common items that are sold as scams include, but are certainly not limited to:
" rare coins
" precious metals and jewelry
" mobile phones or computers
" brand name clothing or shoes
Thankfully, most scams are fairly easy to spot, once you know the warning signs to look for.
Foreign Or Domestic?
While there are certainly some fantastic deals to be had by buying products abroad (especially in Asia) and having them shipped directly to the United States, there are also enough headaches involved in this sort of enterprise that, most successful eBay dropshippers suggest you avoid using foreign suppliers entirely.
A nice compromise is to look for special deals with foreign partners, but to limit the bulk of your goods to domestic wholesalers. This way you'll be able to not only take advantage of some truly fantastic deals with what is typically less expensive merchandise, but you'll also be able keep up with other companies through contacts and trade publications when your domestic companies are no longer able to provide you with some of your best selling options.
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