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Beware of Drop Shipping Scams: Protect Yourself

Thu Jan 4, 2024 Amazon Tips

Drop shipping has become a popular way for entrepreneurs to start an online business. It involves selling products without having to keep inventory or handle shipping.

However, the rise of drop shipping scams has made it difficult for people to trust this business model. Self-proclaimed “coaches” and “experts” are promoting this strategy with claims that very little investment is necessary and that generating tens of thousands in revenue is possible without carrying inventory.

The problem is that many of these so-called coaches and experts are scammers trying to prey on unsuspecting individuals. They are out in droves, trying to convince people of the glories of retail drop-shipping on Amazon.

It is essential not to fall victim to any Amazon drop shipping scam. You could lose your business, Amazon account, and money if you do.

In this article, we will discuss the rise of drop shipping scams and provide tips on protecting yourself from falling victim to them.

What is Drop shipping?

Before we dive into the scams, let’s first understand what dropshipping is. Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. This means that the seller never sees or handles the product.

The Rise of Drop Shipping Scams

The individuals behind these drop-shipping courses are not incentivized to make their students successful; they make money either way. They offer cheap virtual assistant help and software to those interested in drop shipping. These “business coaches” increase profits with every new student they sign up for their get-rich-quick scheme. They have created a drop shipping machine that requires minimal effort and attention. However, the students who purchase this scam make very little profit.

How Scammers Exploit Drop shipping

Scammers have taken advantage of the popularity of drop shipping by creating fake drop shipping companies and websites. They lure unsuspecting individuals with promises of easy money and minimal effort. These scammers often use social media platforms to advertise their “business opportunities” and target individuals looking to start online businesses.

How to Spot a Drop shipping Scam

Unrealistic Promises

One of the giant red flags of a drop shipping scam is unrealistic promises. Scammers will often promise quick and easy profits with minimal effort. They may also claim that you can make thousands of dollars in a short amount of time. If it sounds too good to be true, it probably is.

Lack of Information

Legitimate drop shipping companies will have a website with detailed product information, shipping policies, and contact information. If a company’s website lacks this or has very little information, it could be a sign of a scam.

Poor Quality Products

Another sign of a drop shipping scam is poor-quality products. Scammers may use low-quality products or even counterfeit products to fulfill orders. This can lead to unhappy customers and damage your reputation as a seller.

Request for Payment Upfront

Legitimate drop shipping companies will not ask for payment upfront. If a company asks for payment before you receive any products, it could be a scam. Be wary of any company that asks for payment through wire transfer or cryptocurrency, as these methods are difficult to trace and can be used by scammers to avoid detection.

How to Protect Yourself from Drop shipping Scams

Do Your Research

Before partnering with a drop shipping company, do your research. Look for reviews and feedback from other sellers who have worked with the company. Check for any complaints or red flags. You can also use tools like the Better Business Bureau to check the legitimacy of a company.

Ask for Samples

If possible, ask for samples of the products before partnering with a drop shipping company. This will allow you to assess the quality of the products and ensure that they meet your standards.

Use Secure Payment Methods

When paying to a drop shipping company, use secure payment methods such as credit cards or PayPal. These methods offer buyer protection and can help you recover your money if you fall victim to a scam.

Trust Your Gut

Trust your gut if something feels off or too good to be true. Don’t let the promise of easy money blind you from potential red flags. Take the time to thoroughly research a company before partnering with them.

What to Do If You’ve Been Scammed

If you’ve fallen victim to a drop shipping scam, there are steps you can take to protect yourself and potentially recover your money.

Contact Your Bank or Credit Card Company

Contact your company immediately if you’ve paid a drop shipping company using your credit card. They may be able to reverse the charges and help you recover your money.


File a Complaint

You can file a complaint with the Federal Trade Commission (FTC) or your local consumer protection agency. This will help alert others to the scam and help you recover your money.

Report the Scam

Reporting the scam to the appropriate authorities can help prevent others from falling victim to the same scam. You can report the fraud to the FTC, the Internet Crime Complaint Center (IC3), or your local police department.


While drop shipping can be a legitimate and profitable business model, it’s essential to be aware of the rise of drop shipping scams. Knowing how to spot a scam and taking the necessary precautions can protect yourself and your business from falling victim to these scams. Remember always to do your research and trust your gut when considering partnering with a drop shipping company.