However, I notice that semi-informed or ignorant retailers and or customers who bought goods are now victims of drop-shipping service fraud scammers online. They want to be their regular customers for their online or offline business, but they were tricked into buying their cheap prices for shipping goods. So I will show you 17 lists exactly and briefly that will help in avoiding scammers here:
1. Avoid if companies or suppliers require a monthly subscription fee or something similar. Genuine drop should only charge you for the items you sell.
2. Customer Service is very important, especially in moment of crisis such as when a package doesn’t show up or when an item is faulty. So, you need to test whether they are to neglect by sending them email, asking them some questions like this: How much do I need to spend to get a discount? What is your minimum quantity order, etc? And see how long it takes them to reply you and look closely at the quality of the answers provided.
3. Before getting into a business with a supplier, ask about warranties, guarantees, shipping policies and return policies. Every one gets returns at some point. So you need to make sure that you won’t have to foot the bill.
4. Whether you want to become a distributor or retailer, it is good to find out if there any supplier (locally in your area) internationally compares the prices before get into shipping and handling costs.
5. Monthly charges are ok if the quality of the product and what is "includes" in the membership makes worth the monthly charge, always ask yourself am I saving money paying them for a subscription? However, registering with dropshipping companies should always be free. This is market norm. Unscrupulous companies may charge you a fee. So, if you feel uncomfortable with that idea, dump this company and look for another company.
6. Don't trust just by the look of the website or what they promise you. Always do a trial and ask all possible questions before get into any contract.
7. Don't give your credit card. Use a debit card unless you already know the supplier and the source of the products.
8. Never use western union to buy products or a bank wire, as these methods offer no security to buyers. But if you find that your supplier always enables to accept western union or a wire transfer, we know that they might be illegitimate transactions. Before making an order for large products, contact an inspector at www.chinainspect.com to inspect your supplier’s products whether it is fake or not if they accept western union, and you will pay $ 500.
9. The trick to get the best deals is to register with multiple wholesale distributor accounts. This way, you can ensure that you can be kept abreast with the latest prices of products. You would also respond faster to meet marketing demands with cheaper products than your retailing competitors.
10. Look for companies that can accept your minimum order size. But the best way to get deeper discounts possibly is to place bulk orders. Buy products in bulk if they offer 15% to 50% discount off the retail prices. It is best because you can get enough profit.
11. Be sure in conduct your own research on suppliers and manufacturers. Get up reliable relationships, and you will have a solid basis for your continued business success.
12. Take time to view and analyse the samples of new products and before committing to larger purchases. Ask your selected supplier for a case or two of a new product to give as customer samples or ask if you can buy a sample product from their inventory. This is important because there is too much risk in ordering products sight unseen. You need to cater to your customers’ needs by checking if a product fits to your customers, not suppliers.
13. You should also be well versed when it comes to negotiating with trade suppliers because they deal with possibly more people who are good at verses or well-negotiated than you. It is better that you should always practice your negotiating skills at every opportunity you can get from suppliers.
14. To qualify suppliers as tier one for your business, you need to make sure that they should:
· Hold their own inventory
· Have no minimum order amount
· Be willing to ship as little as one piece at a time, with no extra charge. There may be a small order fee for items under a certain coat. This is normal with all wholesale suppliers.
· Ship blind with no reference to themselves. And if everything is okay, then deal with them as tier one. Make sure that you deal with a good company that can offer a guarantee and stand behind it.
15. Be wary of the middlemen or broker you are dealing with because they can impersonate as a wholesaler or dropshipping suppliers. Most of them are resellers or Tier-2 wholesalers that can add that much more to your total cost for items which could be bought so cheap from the trustworthy wholesalers or they could not carry enough stocks to fulfill their customers’ orders.
16. Be careful of the wholesale pallets you are ordering because these usually closeout products that are no longer product or product returns or product damages, and they are packaged in bulk for quick sale so as to clear their inventory room.
Therefore, to protect against your lost possibly business, buy only based on mixed wholesale pallets or choose only based on Graded stocks. Or ask what is in the pallets or stocks, is this stock of the same items, etc. There are graded labels on stocklot from wholesale sellers you must be aware before choosing the graded stock. The followings are here:
- Clearance – Stock that has been cleared from a manufacturer to clear inventory space.
- Letter Graded – Items listed as “A” grade are generally still in original packaging or have no defects. “B” grade items may be used or repackaged, have slight damage, but are still in working condition. “C” grade items are no longer in the original packaging, or they are items that no longer work or have serious defects.
- Returns/Mixed Returns – These are wholesale pallets of items returned by customers. Mixed returns contain a variety of items.
- Scrap – These are items that can be sold for spare parts.
- Clothing Grade – Returned or used clothing may be Grade 1 or 2. Higher grades have perhaps a small defect, while grade 2 has visible signs of wear or damage.
17. There are only three things you can buy trade stock from wholesale suppliers in a safe fashion that gives three parties security.
· Buying on Credit: This optionally (also known as ‘open account’) gives you, the business owner, a 30-day opportunity to resell the items and collect money from your potential customers before you send funds to the seller, but international companies have such strict guidelines, and they may not grant credit purchases to those smaller firms or firms that do not frequently make purchases or make large purchases.
So, if you want this type for your business, you can ask if a company can accept buying on credit. It may not be easy for your company to buy on credit, as most of the sellers have extensive credit terms before granting credit to your company.
· Credit Card Transactions: Using an internationally name-brand credit card like Visa or MasterCard in your own country can give you protection against false purchase and fraud because if there is any question about items not received, or never shipped or incorrect trade items, you can lodge a complaint with your credit card company, and they can help you to reverse the charges. Go and open a domiciliary account.
· Buying through Merchant Services: Using reputable merchant services can help in reducing risk because they will act as a neutral third-party to sternly manage or oversee the transaction process and provide guarantees for both the buyer and seller when making expensive trade transactions.
For example, if any part of a transaction fails to do it, the money will be returned to the buyer immediately or the trade items will be returned to the sender. Go and register with either of them for trade transactions if you don’t have money enough to open the domiciliary account. Who are they? They are www.sterlingsecure.co.uk, www.escrow.com, www.paypal.com, and paymate.com/cms. They are so strict.
17. Avoid registering with paid dropshipping directories and wholesale forums because you may only get a few actual numbers that work. Register only based on free.
For more details on wholesaling drop-ship scams, click here to read it.
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