Drop shipping is a great form of business for new online entrepreneurs.
It offers the benefits of low startup costs and overhead with the potential for unlimited income.
It's a great way to make extra money in your spare time, or as a full time career.
Unfortunately, most new drop shippers fall for common traps and mistakes that kill their chances of being successful at it.
Despite the fact that its fairly simple, most people end up failing.
This article will show you some of the most common drop shipping scams out there.
First off, forget about signing up for any monthly membership services.
No real wholesale company will charge you any monthly fees.
Period.
If you've sign up for any of these services, you know that they do not offer real wholesale prices.
Not only that, but they usually offer very common and generic products.
This means you're selling the same stuff as everyone else at the same inflated "wholesale" costs.
There's no reason for anyone to buy from you if they can get the same thing for 10 cents cheaper elsewhere.
And trust me, they will.
You'll find this same merchandise selling on eBay for less than your wholesale price.
That brings me to my next point.
Drop shipping on eBay is risky business.
Selling on eBay is very expensive.
They charge fees to list items, and they charge you again when they sell.
But that's not what you should be worried about.
When you're drop shipping, you'll inevitably run into the out of stock issue.
This happens when someone places an order for your item, but when you go to your drop shipper you find out its sold out.
This is especially common if you're using a common drop shipping source.
If you do this on your own website, you may be able to save the sale or recommend another similar product.
If you do this on eBay, you're in trouble.
eBay buyers expect to receive their item quickly, and eBay requires it as well.
When this happens, you're going to get negative feedback from the buyer, and you might get banned from selling.
All these problems can be avoided or solved if you plan ahead and you know what you're doing.
You can make big money drop shipping with the right tools.
Don't fall for these rookie mistakes.
If you want to drop ship like the pros, think like the pros.
Don't go for the easiest solution and expect to get the best results.
Like anything, if it seems to good be true, it probably is.