Article: Don't Get Taken by a Fake Distributor

by Chris Malta

"Don't Get Taken by a Fake Distributor"
When you're a small business starting out on the Internet, or even when you're an established 'Net business, you NEED drop shippers.
Why? Because working with drop shippers eliminates the need for you to carry expensive inventories. You dont have to rent a warehouse, hire employees, establish accounts with UPS and FedEx, etc. You can sell the best brand names on earth from your home computer, and make good money at it.
Distributors who drop ship send the products you sell directly from their warehouse to your customer, with your business name on it. All you do it take the order from your customer and pass it to the distributor. You keep the difference between the wholesale price the distributor charges you, and the retail price you sell to your customer for.
Of course, there are a lot of places out there that want you to THINK they are wholesale drop shippers. Theyll set up accounts with, say, 10 real drop ship distributors. Then theyll call themselves something like, and claim that THEY are the wholesale drop ship distributor. Then itll go like this: will place advertising all over the Internet proclaiming to be the greatest source that ever existed for all kinds of great products, and theyll drop ship all those products to your customer.
Youll get all excited because YOU can actually place everything from Sony electronics to Coleman Camping gear on your web site and sell it. will charge you an account setup fee, to cover their processing. (Note: REAL wholesale distributors almost NEVER charge you an account setup fee ). will send you a nice, shiny list of products and show you where to get the product images and descriptions to place on your web site.
Youll get all excited, and put all this great stuff on your site, set your prices so that you can make a profit over what
Youll launch your site, and you hardly sell a thing.
Huh? What happened? Nobodys buying You cant survive on just a few orders a month
Disappointed and discouraged, you start to go out and check other web sites that carry the same products. Maybe they have better images. Maybe they have cooler descriptions. Maybe their pages look nicer. You find that its none of those things. So what DO you find?
The other sites PRICES are lower. A LOT lower.
You just got nailed by one of the most popular scams on the Internet. took you for a couple of hundred dollars in exchange for a CD full of product images. They may have even locked you into a contract where you have to pay them every month to be a member of their distributorship.
Oh, DOES ship the products they claim to. Of course they do. Its just that when they get an order from you, they turn around and place your order with the REAL wholesale drop shipper, and take a profit. By the time YOUR price is calculated, youre paying not only wholesale, youre paying GetYerStuffHere.coms extra markup of anywhere from 10 to 30.
In order for YOU to make a profit, you naturally have to mark up the prices you get from By the time you do that, you cant compete on the Net. Your prices are just too high.
At this point, you can do one of two things:
You can lower your prices to the point where youre making mere pennies on your products in order to compete.
You can bypass these jokers and go to the REAL sources.
Ive been in Systems Engineering for 18 years. Ive been involved in ECommerce since it began. In that time, Ive seen this scenario played out over and over with companies Ive done work for.
The real sources can be hard to find. They dont market themselves as Internet drop shippers. They are established wholesale companies who have been supplying big chains like Sears and Kmart for a very long time.
Many of them are now realizing that a good part of their future lies in Internet sales, and they are establishing drop ship programs. There are even a few big name manufacturers who are beginning to drop ship right from their factories. Thats where YOU need to be. In direct contact with the actual wholesale distributor or factory source.
When youre looking for a drop shipper, here are a couple of things to be careful of:
Any company that tells you that theyll set up your entire web site AND PROVIDE THE PRODUCTS FOR YOU will NOT make you rich. Theyll make THEMSELVES rich on your setup and hosting fees, and youll piddle along with thousands of other small sites all selling exactly the same things at the same prices.
(NOTE: Dont confuse this with companies who just offer to set up your ECommerce web site. There are a lot of great places out there that will build and host sites for you. Its when they tell you that you HAVE to sell the products that THEY provide that you should run for cover.)
Any distributor who wants you to pay a membership or setup fee is probably not a true wholesale distributor.
If it sounds too good to be true, its too good to be true.
Chris Malta
WorldWide Brands, Inc.
For more information, visit

About the Author

Chris Malta is a Microsoft Certified Systems Engineer. He has worked with computer Systems for 18 years. He's been involved in eCommerce systems, networking and site design for more than 6 years. He's taught collegelevel computer courses in Western NY. He developed The Drop Ship Source Directory, and he and his partners at Worldwide Brands, Inc., publish the Directory and run eCommerce sites of their own using Drop Shipping as their only business method.

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