| A Dropshipper, will effectively dispatch their goods to | | | | discount, often 1 - 5% off the RETAIL value. This |
| any specified address...and address all receipts and | | | | discount off the retail value of any product, is in no |
| invoices to another. This is a very effective way of | | | | way shape or form sufficient to generate a decent |
| doing business as it eliminates one link in the postal | | | | profit, let alone make you competitive to enough to |
| chain. Real, genuine Trade Wholesalers have actually | | | | even sell it! Your local retail outlets will buy in greater |
| been operating in this way for decades...it is not a | | | | bulk than any internet Wholesaler or Dropshipper, and |
| new concept. It is only new to the 'average Joe' | | | | therefore beat any price you will see offered on |
| internet pawn. | | | | these websites. Genuine internet retailers, will offer |
| I use the description 'pawn' in a very deliberate | | | | these products at an even greater discount than |
| manner... so please don't take offense. This is | | | | those on the high street. You are on a losing streak |
| because in order for these companies to operate, | | | | here I'm afraid. The spoof Dropshipper will be praying |
| they need to employ a huge amount of man power | | | | on the negligence, laziness and naivity of those willing |
| to fulfill all of their orders. How would the Internet | | | | to try anything to make themselves richer. |
| Dropshipper operate this, when the market is so | | | | The Dropshipper, makes his or her money from |
| very highly competitive? | | | | membership fees. But it is not even as simple as that. |
| "The BAD Dropshipper is effectively another pyramid | | | | I mentioned previously, that many Wholesalers are |
| scheme. They will not actually employ anybody | | | | actually Dropshippers. New Dropshippers are part of a |
| (other than themselves), but will charge a | | | | pyramid scheme and do not sell anything of any real |
| membership fee for their services as a 'warehousing | | | | value. How so? |
| and logistics' company. Well, that seems fair enough I | | | | In one very simple description, they are just one, in a |
| suppose... doesn't it? " | | | | very long chain of dropshippers. They will 80% of the |
| Let me tell you where the entire Dropshipping | | | | time, not hold any of their own stock...but use, yes, |
| industry falls way off the scales in terms of fairness. | | | | you guessed it...a Dropshipper, who will in turn use a |
| Take you, yes you for example. Lets say you wish | | | | Dropshipper, who will use a...etc etc. Trace this far |
| to start trading in computers. You find a Dropshipping | | | | enough back and you may well find a genuine |
| company and, not surprisingly find they will not | | | | Wholesale outlet that will, like the many other's have |
| divulge any trade prices openly on the world wide | | | | been doing for years...deliver goods to an alternate |
| web. To view the 'trade discount', you will have to | | | | address. |
| sign up for a fee. In 2008, these fees range from | | | | So there you have it, there may well be a legitimate |
| £10 for a lifetime membership to £100 | | | | business somewhere that this can be traced to. But |
| per year. Where does this huge cost difference | | | | somewhere in the timeline of internet entrepreneurs, |
| manifest itself? Well, you will find some Dropshippers | | | | an individual found a way to exploit this service and |
| are better than others, you will find some have | | | | sell it to tens of thousands, if not millions of innocent |
| greater product ranges, better customer service...but | | | | people looking to make an easy buck! |
| does that justify this cost deficit? No. Be it a banana | | | | Again, this is all perfectly legal. The service you pay |
| or the newest phone on the market, it will still cost | | | | for is the service you get. By using vague |
| relatively the same amount to process, pick and | | | | descriptions and loosely binding contractual |
| despatch the goods. The higher the price normally | | | | agreements, these individuals have raked in millions, |
| means the more confidence the individual at the | | | | using no more than a web page with automated |
| other end has. Often, the prettiest website and the | | | | payment facilities and automated email/order |
| promise of bigger discounts! | | | | generating... |
| These false Dropshippers work on a very similar | | | | Do yourself a favour and question the authenticty of |
| principal as the GRQ gurus. They pray on the naivety | | | | any dropshipper, there ARE some very good ones |
| of an individual looking for yet another way to 'GET | | | | which have unfortunately suffered because of the |
| RICH QUICK!'. | | | | bad ones... |
| These businesses offer no more than a laughable | | | | |