How dropshippers could cheat and still make money?
Before I get into real dropshipping cases, let me give you a very brief idea of what is dropshipping, especially for those who don’t have a clear idea about it:
It is a very simple operation that doesn’t require you to be a tech or e-commerce geek.
All you need is an online supplier, a simple eCommerce website, or a page on the social media, Facebook, or Instagram.
You find this online supplier, which is very easy to find on the web, create a page, display the products that you feel appealing to customers, and put some ads on social media.
Once a customer likes what you have on the page, clicks to buy, and checks out, it automatically sends the request to the supplier. In return, the supplier ships the item to the customer.
If things go well, the dropshipper gets a commission from the supplier as agreed upon and the customer gets his/her item.
Below is a flowchart that could simply depict this process
Well, this is how it should be done, but not how it is really done all the time!!
Now, we come to the hidden world of dropshipping and its scamming projects.
This matter came to my attention while reading a very interesting article from the BBC.
According to this article, many dropshippers use manipulative methods.
These methods can be like creating a fake attracting website or social media page with knock-off brands or creating a page with attractive brands but in reality, there is nothing.
So, attracted, uninformed customers get scammed either way. They pay for the product, but they either receive a knock-off product or they receive nothing.
These kinds of dropshippers usually do this as hit and run business.
They connect with some Chinese or suppliers of low-quality or imitated-brands. Then, they display these items on their shiny pages.
There is even more. Sometimes these dropshippers hire well-known influencers to promote these products. They believe this would give some credibility for their products and business.
After making a hit and scam as many as they can, these dropshippers disappear.
In case they stay, they manipulate the reviewing and rating platforms. This is done by creating fake accounts to counter the number of negative reviews to show a good average positive rating.
Ok, let us look at this scamming concept and see who is the culprit and who is the victim.
Identifying the number one victim is easy. It is the customer. As for the culprits, it can be everybody else.
We may give influencers the benefit of the doubt, assuming they do not know it is a scam, but we can blame them for not doing their homework.
According to the linked article, these dropshippers were able to make hundreds of thousands or even millions of dollars. And, the influencers get well-paid as well.
In one case, a well-known influencer Kourtney Kardashian got paid around $203,000 to promote a fake product. The sad part is that Kourtney declined to comment on the story and the promotional video is still running.
It is unfair to say that most dropshipping businesses are trying to scam shoppers. There are many, who have legitimate businesses and are transparent about their products.
But how could we know? This is the question!
I wrote earlier a blog on how to shop online safely. You can refer to this article to get more detailed information. In short, you need to be aware of these 4 aspects:
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It is too good to be true: meaning that don’t be allured by the fancy look of the low-priced product online.
When you see a famous brand with a low price, you need to ask yourself how? When the brand owner or its accredited sellers sell a product at a certain price, doubts should be raised.
How this dropshipper sells it for such a low price? It could be fake, stolen, used, or not even there.
If we want to give them the benefit of the doubt, it could be a returned item from these big sellers.
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Influencers are not product-certificates; they are promoters: this is a big one actually!
A famous online influencer or a celebrity using a product or service and promoting it doesn’t necessarily mean that this product is as they promote. They are getting paid to say what they say.
I know it sometimes feels great to follow your beloved celebrity or influencer. But you need to be mindful and don’t take everything for granted. Maybe what they say is true, but extra check won’t hurt.
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Go for the big names: there are many dropshippers, who work as a stand-alone business or affiliated with other platforms.
Big names like Amazon and eBay actually offer such a service. It is called a third party seller.
I know you would say that you could get scammed on these sites as well, but you are protected, especially Amazon.
These platforms care about their reputation. They can easily refund you when you have a valid complaint.
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Be aware of the social media pages: professional sellers have their secure websites with secure payment methods.
Caveat! I believe if you go to a social media page with no physical representation or website reference, you know what you are getting; a big chance of being scammed.
To show trust and security, trusted online sellers have websites with an SSL certificate that starts their link as https://. The s here refers to a secure website.
Moreover, they have a secure payment method like PayPal. If you were scammed, you could file a complaint and get a refund.
Another tip, these trusted sellers usually have a channel and address you can reach to easily.
Cash On Delivery COD:
This is a very popular way of shopping and paying in our part of the world. As a result of a lack of trust towards online sellers, the market adopted this method of paying.
To avoid the above-mentioned scams, many buyers tend to pay upon receiving the item. So, buyers sort of guarantee that they at least get the item.
This created a kind of intermediary services, especially for those who like online shopping from overseas.
These services can buy the items from sellers on your behalf and deliver them to you. You either pay cash in advance or when you receive the item.
This created another problem, but this time for sellers. Buyers order their items.
If they don’t return the call or refuse to take the item, they don’t bear any costs. They might get blacklisted though, but they can find a way around and get back again.
Still, you need to be mindful of these services. You can refer also to a previous blog about how to find such services and how to use them.
Bottom line:
What we see here that the market evolves. Every market action, positive or negative, a reaction is created. Markets are not only sellers. It is sellers, buyers, and institutions.
When there is an opportunity, any of these market players pursue to catch it, in a good or bad way. It depends.
Scams created anti-scam measures. Computer viruses created anti-virus software.
Expensive long-distance calls created over –the- internet calls or programs like Facetime, What’s App, and more.
High-priced brands created knock-off brands and anti-counterfeiting institutions.
So, in the end, it depends on which side of the market you are. But, anyway, you need to be heedful and reacts!