Fake dropshipping suppliers have crippled many start-up eCommerce businesses. We have broken down all of the typical signs of the fake and/or disingenuous, so you can feel confident searching for your dropship suppliers.
Finding a good dropshipping supplier is the most critical step for a dropshipping business. However, with all of the fake and poor quality suppliers out there, this can also be the most tedious step. No one wants to be on the wrong end of a scam, but it happens all the time. Every day people loose money to fake dropshipping suppliers and their sanity trying to survive and thrive in eCommerce. These are some of the red flags you should look out for.
They Charge Recurring Fees
No legit site will require you to pay a membership fee on top of ordering products. If a drop shipping supplier does ask for this, it could very well be a scam.
Contact Info That is Not Direct
A Legitimate dropshipping supplier should have a phone number, email and address all on their website. If this information is not clearly displayed, or the seller only has a basic email entry for contact, they should not be trusted.
They Don’t Offer Samples
Many suppliers will gladly offer samples at a discounted price if not for free to potential buyers. If you can not get a sample at all, you should move on as this is a big red flag.
They Have Negative Reviews on Other Websites
A supplier may have some great reviews on their site, but those reviews may not be all that has been said about the supplier. No business would admit to poor service on their own website. Do some digging and see if there are any other reviews on independent websites.
Only Accepts Wire Transfers as payment method
Legitimate suppliers want to make as much money as possible, therefor they make a point to have a variety of payment methods to choose from. A supplier that asks for a wire transfer only is interested in getting their hands on your money, not selling you a product.
One of the most common scams for dropshippers is the middleman wholesaler. These fake suppliers pretend to be true wholesalers, but they pass your sales on to an actual wholesaler. If there is doubt that you may be dealing with a middleman, do some test orders without informing the supplier. This should show you if you are dealing a with real supplier or not.
They Sell to The Public
Any “drop shipping Supplier” that sells individual items to the public is violating the fundamental principles of being wholesaler. In every case, these companies will have some issue whether it be pricing, customer service or delivery. For these reasons it is best to automatically avoid any company that sells under these principles.
They Claim High Margins
One of the glaring signs of fake dropshipping suppliers is their claim to high margins. This a common tactic used to lure in naive startups. The nature of dropshipping causes tight margins due to all of the work involved on your suppliers end. It wouldn’t make sense for you to be walking away with all of the profits if your supplier did a good job. This is why some suppliers will advertise good margins, but they seriously lack in some area of quality. It is best to avoid any supplier that offers “to good to be true margins” unless this is a supplier you have built a relationship with and trust.
They Won’t Sign Anything
It is crucial to have a legally binding agreement before any products are bought and sold. This document clearly states all conditions and resolution methods for precarious situations should they arise. If they refuse to sign any legal documents, they are a fake dropshipping supplier and you should start looking elsewhere.
Find the Right Dropshipping Supplier
If you want to avoid all of the hassle of trying to find a supplier you can trust, companies like salehoo or dropified take all of that out of the picture. These sites direct you to thousands of suppliers that are highly recommended and trusted. Check out our directory of sponsored wholesalers we recommend!