Guide For New Online Entrepreneurs - Three Ways to Avoid a Dropship Directory Scam

Guide For New Online Entrepreneurs - Three Ways to Avoid a Dropship Directory Scam.

The only way to make a profit from online retail sales is to find the lowest priced suppliers. Especially for branded items and electronics, information on market prices is readily available to anyone who has access to the internet. The product, when being purchased brand new, is also an undifferentiated product such that prices are the primary decision parameter for most potential customers.

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This is probably why more and more retail sellers are looking to wholesale dropshipping as a way to reduce overhead and operational costs in order to be able to offer lower priced products. An offshoot of this increasing demand for access to wholesale companies willing to drop ship for retailers is a growing niche for dropship directories. The problem is, scam artists have also begun to proliferate in this new niche. Usual victims are new online entrepreneurs who have great interest in harnessing the benefits of incorporating dropshipping in their new business operations.

Here are three things that can be done to be able to recognize and avoid dropship directory scams:

1. Check the access costs. If the prices seem impossibly low, then there is probably a catch. It is true what they say - you do get what you pay for. Directories can only help businesses if they list true wholesalers rather than just regular suppliers who are willing to deliver directly to the customer in behalf of the seller.

 The list must be up-to-date and assessed for quality and performance. Steps to ensure this level of quality for a dropship directory requires a substantial amount, especially for an international list with a wide range of available products; hence, if you are being asked for a $5 fee for lifetime membership to a directory, you can be sure that it is a scam. Access to good quality directories usually cost upwards of $50 per year but provide value added services for its members.

2. Keep abreast of online business issues through community forums. Forums are good resources for understanding the industry better. Fairly uncensored, inputs from more experienced sellers can provide additional tips on which directories are most useful or even which suppliers should be avoided.

3. Ask questions, especially if you are new to the industry. Once a potential supplier is being considered, remember that the retailer has the right to verify the authenticity of the supplier company, the quality of his goods and the speed of his services. The retail seller must take time to ask the correct questions and negotiate for lower prices.

Following the above tips would increase the ability of any online retailer to spot phonies and, therefore, surely reduce the risk of their falling for dropship directory scams.

The only way to be able to make money online is to get your supplies at 90% below retail. Compare the Top 3 Wholesale Directory. See why is SaleHoo constantly featured on Oprah and CNN Business! 

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