Is Wholesale Sourcing A Scam?
Thursday, November 19th, 2009
A lot of people who are researching the lot of wholesale suppliers will stumble upon a wholesaling and drop ship service which offers its customers the opportunity to buy merchandise below retail price and then sell them on for a profit.
There are a lot of different people who take advantage of these services but it is important that you know what you are getting into when you sign up for an account. While there are a lot of drop shipping wholesalers out there in the world, not all of them have the greatest intentions, so do the basic research.
Once you have set yourself up for a free trial, you will often be contacted by a sales representative who will persuade you to pay for a full year’s subscription to the service which will, in the long term, save you a lot of money. Often the savings will come from the volume of sales you will make, so you should be prepared to invest some time in the growth of your business. It’s crucial to note however, that if you decide to cease trading or if you decide this sort of business is not for you, you will not get a refund of this amount.
One of the other problems with this service is that because it is a cumulative marketplace, all the merchandise on offer are marked up between 10-15% on the price that you would get if you went directly to thewholesaler source or the drop ship supplier. Many customers will will be let down and leave the service as they find they are not able to make the amount of profit that they had initially hoped was possible.
If you plan to use a service such as this, it is highly recommended that if you exercise some amount of caution and utilize your best judgment.