How to Spot and Avoid Fake Dropshipping Companies

Selling things online, particularly via dropshipping suppliers, is a practical method to get your company up and running fast and inexpensively, and it is becoming more popular. However, like with any other aspect of life, there are con artists, and it is your responsibility to do thorough research and due diligence when examining providers. The goal for you is to recognize the tell-tale symptoms of a phony vendor. The following red signs will help you identify bogus dropshipping suppliers, regardless of whether you’re a newcomer to eCommerce or a seasoned professional.

1.     Ask For Periodic Membership Fees

This is a frequent ruse used to defraud entrepreneurs. What does dropshipping cost? Because payments are made per order, legitimate dropshipping suppliers do not impose any fees for keeping inventory. Any provider that requests a monthly membership fee or service fees is a phony and should not be approached further.

2.     Retails to the public

Dropshipping wholesalers are distinct from traditional firms. They supply inventory for e-commerce businesses that do not want to maintain their own stock while also handling order fulfillment on their behalf. False suppliers are those that conduct their own company by selling to the general public. If such suppliers attempt to explain themselves or make claims, do not spend your time listening to them since they are in violation of the core idea of becoming a dropshipping provider.

3.     Lacks contact information on the website

Many dropshipping wholesalers indeed lack the resources and skills to design a visually appealing website. On the other hand, every dropshipping web page must include several contact data, including addresses, phone numbers, and additional fundamental information. A supplier’s website that lacks all of these types of information should be avoided since it is almost probably false. It would be best not to spend your time with them in any talks.

4.     Refuses to Give Out Samples

You must request samples from wholesalers throughout the bargaining phase. Not only is this a crucial procedure for ensuring product quality, but it also serves as a filter for determining the legitimacy of the source. Fake dropshipping vendors would be reluctant to give samples or will beg for more time to do so. These are the warning signals indicating they are fake, and you should avoid interacting with them in the future.

5.     Refuses to Sign Any Agreements

It is necessary to create an agreement with the dropshipping suppliers before starting a dropshipping company. This will describe the terms and conditions explicitly and the course of action to be followed in the event of an uncertain circumstance. If a dropshipping supplier declines to sign the agreement, you must find a new one since this provider is a fraud who will not wish to join into a legally binding arrangement.


If you follow these guidelines for identifying false dropshipping suppliers, you’ll be better equipped to defend your company from fraudulent dropshipping providers. Always look into anything if it looks weird or out of character. Although it takes time and effort, it is preferable to check that the source is legitimate rather than risk doing business with a con artist.