In the long hall of shame housing dropship scams, another scam has found a place. This scam, according to wholesale reviews, goes by the name of wholesale list auction. Usually, the scammers operate on eBay, where there are hundreds of often-gullible buyers with no experience in how to tell fraud from truth, thus providing a fertile breeding ground for all kinds of swindlers.
This is how the scam operates. The scammer invites bid for purported bargains. It could be a cheap computer or the latest in car gadgets, or just about any other popular product at a heavy discount. After the auction, the winning bidder is asked to deposit the payment and their promised product is shipped across. Once the buyer receives the package, he realizes he has been deceived, and very cleverly indeed. Instead of the computer, or the handheld e-reader, or a car stereo phone, what he receives is a list of wholesale suppliers who sell the product. When the buyer contacts the dealers mentioned, he is asked to buy the products wholesale, in order to receive the promised discounts.
This means that he has to buy around 100 laptops in order to get a discount of 50 percent on each, as promised. It is then that the buyer carefully reads the terms and conditions of the sale, and discovers, in the fine print, a mention of the list and not the product. Technically, this may or may not qualify as a fraud, but the intention to swindle is clearly there.
Risk to Genuine Retailers
While most people who consult dropshipping directories and wholesale reviews are sellers on eBay, and not buyers, the wholesale list scam is a universal cause of concern. Many sellers look up suppliers on eBay, and they might just be tempted to order the wholesale list just to avail the purported discount on offer. Another risk is that the wholesale suppliers mentioned on these dropship scams may not be genuine. They could lead you to sink further into dropship scams by selling fake, poor quality products. Even if they do sell products at the promised discount, you would have to purchase a large inventory off them before you can benefit from the price reduction. Large inventories are not convenient for dropshippers, small sellers, and even for some powersellers who would rather buy small stocks or have the products dropshipped directly to the customer.
Such wholesale list scams also make buyers on eBay more wary of sellers. Unethical sellers and suppliers running these dropship scams get to mint money, leaving the honest trader to pay the price.
Avoid Scams
Perhaps the best way to avoid dropship scams is to find suppliers not through a dubious list, but through an established trade directory. Many retailers would be surprised to know that there are up-to-date, useful directories that offer not only verified merchant details, but also other resources like tips for sellers and market research tools for an exhaustive study of your proposed niche.
Author Resource:-
submit article has been writing articles online for nearly 2 years now. Not only does this author specialize in wholesale
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