Is Drop Shipping Legitimate?

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While the invention of the Internet did not herald the beginning of all cons, it surely helped the con artists of the 20th and the 21st century to find a new way to target and indeed scam people out of their money. There are many different online scams that people fall into and even the most Internet-savvy person won’t know about them all. This is because the con artists and the con artists are very smart and very eager to keep their life style and they are always coming up with new ways to circumvent the law and to steal people’s money. One of these ways is drop shipping.

To be clear, drop shipping is a perfectly legitimate business practice utilised by many small businesses as the only way they can offer goods to their customers. Many large businesses use this practice, too, and it’s not uncommon to find that many high-end car dealerships as well as some stores that sell white goods engage in drop shipping. Drop shipping is a business practice that involves three people; the customer, the retailer, and the wholesaler (or liquidator). The customer will order the goods from the retailer who will then procure the items from the wholesaler. The wholesaler will send the items to the customer and in most cases the wholesaler will make it seem as though the item came from the retailer. Many companies engage in this practice and it is not illegal, but some con artists and con artists use drop shipping and drop ship lists to take money from unsuspecting people.

These con artists prey on people who wish to start up a home business. They auction off or sell a list of drop shipping companies with the promise that the buyer will have access to a great list of people who sell great products at wholesale prices. After spending money on the list the buyer may also have to pay a yearly membership fee-but again they are told that their sales will be so high that they can afford this. When all money is paid the home businessman or woman then has to set up their own website or eBay account and then stock it with the items from the sellers on the drop ship list. It is then that they find that they companies on the drop ship list are often the same companies using different names and contact numbers, are out of business, or are similar middlemen like them. The wholesale price will also be quite high and the home businessman or woman will soon find that they are not making a profit or even enough to cover the initial set up cost or membership fees.

In order to protect yourself from being scammed in this manner make sure that you do a lot of research before signing up to any mailing list or giving anybody money. You will also have to remember that no matter how attractive the offer sounds, there is no way to make a lot of money very quickly from home.

In closing, the practice of drop shipping is not illegal but many “drop ship from home” companies are.

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