{"id":13987,"date":"2022-04-15T09:00:55","date_gmt":"2022-04-15T08:00:55","guid":{"rendered":"https:\/\/www.franchiselocal.co.uk\/news\/?p=13987"},"modified":"2022-04-05T08:33:21","modified_gmt":"2022-04-05T07:33:21","slug":"spotting-scams-and-avoiding-them","status":"publish","type":"post","link":"https:\/\/www.franchiselocal.co.uk\/news\/spotting-scams-and-avoiding-them\/","title":{"rendered":"Spotting Scams and Avoiding Them"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

DropShipping can be an excellent second income source, new venture as an entrepreneur or a way to finance your retirement further \u2013 but there are things to watch out for. Due to the no-contact nature of DropShipping, e-commerce shop owners can be the targets of scams and online fraud.<\/p>\n

As a leader in the DropShipping industry, we\u2019re here to help you identify scams before they happen. There are essentially three types of scams DropShippers should look out for:\u00a0set up,<\/strong>\u00a0wholesaler<\/strong>\u00a0and\u00a0customer scams<\/strong>.<\/p>\n

Setting up for Success<\/h4>\n

Many websites, YouTubers and online personalities are touting \u2018too good to be true\u2019 claims about DropShipping and how you could be making millions in the first couple of months as a DropShipper.<\/p>\n

In these instances, it\u2019s always a good idea to rely on the age-old adage, \u201cif something seems too good to be true, it probably is\u201d.<\/p>\n

Whilst it may be appealing to sign up for DropShipping courses from someone who says they are an expert or are making tons of money a month in a very short amount of time, it\u2019s prudent to be sceptical.<\/p>\n

There are plenty of free courses available and trustworthy DropShipping companies like Armaan Resales that provide you with the necessary education about the industry \u2013 without filling a charlatan\u2019s pockets.<\/p>\n

Wholesaler Scams<\/h4>\n

The internet is full of companies claiming to be your perfect DropShipping partner \u2013 but you must be wary. Here are a few red flags to watch out for when choosing a wholesaler to source inventory:<\/p>\n

    \n
  • Fake website with embellished reviews \u2013\u00a0<\/strong>this can be hard to spot. Do a bit of research into how old the website is. If it is 3 \u2013 6 months old, more often than not this is not a legitimate company or at least a company to be extremely wary of. In terms of reviews, if they aren\u2019t listed on a trusted review website such as TrustPilot or Reviews.co.uk take them with a grain of salt.<\/li>\n
  • Fees \u2013\u00a0<\/strong>when looking for a wholesaler, if they ask for upfront fees or monthly\/annual fees to use their services or if they tack on a fee for \u2018buying in bulk\u2019, avoid them at all costs.<\/li>\n
  • Unclear contacts \u2013\u00a0<\/strong>real wholesalers will have transparent contact methods \u2013 including the name of the person you\u2019ll be dealing with. Additionally, check the address of the wholesaler. Do your due diligence and research.<\/li>\n
  • Low-quality items\u00a0<\/strong>\u2013 the products you\u2019ll sell as a DropShipper will affect your trustworthiness and credibility with consumers. Before choosing to use a wholesaler, ask for a sample of products you\u2019ll be selling to verify their quality.<\/li>\n<\/ul>\n

    Customer Scams<\/h4>\n

    Customer scams (fraud) can severely impact profits, a real threat to retailers of all descriptions, not just DropShippers. As an e-commerce business destined for greatness, these types of scams are something you will inevitably come across. There are two types of customer scams to be wary of:<\/p>\n

      \n
    • Identity theft\u00a0<\/strong>\u2013 common amongst online transactions, fraudulent purchases occur where a consumer has stolen someone else\u2019s identity and makes purchases using their details. The actual customer (whose details have been used) never receives the purchased product, claims fraud (rightly) and issues a chargeback on the stolen credit card\/bank account.<\/li>\n
    • Fraudulent chargebacks\u00a0<\/strong>\u2013 these happen when real customers purchase a product, receive it, then falsely claim that they\u2019ve not received the product and issue a chargeback to their credit card\/bank account.<\/li>\n<\/ul>\n

      In both situations, your company is on the hook for the purchase of the product. It could impact your profitability and your business\u2019 reputation. Avoiding these types of scams are tricky \u2013 but there are things you can look out for.<\/p>\n

      Receiving your first large order is exciting \u2013 but there\u2019s reason to have red flags when these occur. Before allowing your website to process the order, investigate the following:<\/p>\n

        \n
      • Is this a customer you\u2019ve dealt with in the past?<\/li>\n
      • Does the order origination IP address match the shipping address?<\/li>\n
      • Is the billing address in the same country as the shipping address?<\/li>\n<\/ul>\n

        If you\u2019re still unclear whether the order is legitimate after looking into it, contact the customer. If the customer is real, they won\u2019t have any issues speaking to you to verify their order. If you don\u2019t get the answers you\u2019re looking for, don\u2019t process the order.<\/p>\n

        Spotting those pesky scams in the DropShipping industry can be difficult.<\/p>\n

        Set yourself up for success by working with an experienced, trusted partner. Armaan Resales can help ensure the long-term success of your DropShipping business thanks to its connections with verified suppliers, by providing you with handy hints and tips, and offering unparalleled customer support.<\/p>\n","protected":false},"excerpt":{"rendered":"

        DropShipping can be an excellent second income source, new venture as an entrepreneur or a way to finance your retirement further \u2013 but there are things to watch out for. Due to the no-contact nature of DropShipping, e-commerce shop owners can be the targets of scams and online fraud. As a leader in the DropShipping […]<\/p>\n","protected":false},"author":8,"featured_media":13988,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1511,30],"tags":[],"class_list":["post-13987","post","type-post","status-publish","format-standard","has-post-thumbnail","category-armaan-resales","category-business-franchises"],"acf":[],"jetpack_featured_media_url":"https:\/\/www.franchiselocal.co.uk\/news\/wp-content\/uploads\/2022\/04\/2-1.png","_links":{"self":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/13987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/comments?post=13987"}],"version-history":[{"count":0,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/posts\/13987\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media\/13988"}],"wp:attachment":[{"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/media?parent=13987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/categories?post=13987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.franchiselocal.co.uk\/news\/wp-json\/wp\/v2\/tags?post=13987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}