The other night on my way to dinner with a friend I saw out of the corner of my eye an animal crossing the street from under a car. Oh, a cat I thought. But, then I looked closer. It was too small to be a cat, so I thought it might be a kitten. I pointed it out to my friend and asked her what she thought it was. “That’s no kitten.” she said, “It’s tail is dragging behind it. It’s a rat.”
This rat was huge! It’s massive size fooled me. But as it climbed into the storm drain I shivered. Yuck! The differences between a kitten and a rat are innumerable. But the dark, the size, and it coming out from under a car like cats do, had contributed to my misjudgment.
Sometimes a lot like my “kitten” that was really a rat, deals cross our paths that look pretty common-place or maybe even appealing. As entrepreneurs we may even approach an opportunity with interest only to find out that the opportunity is a rat. It looked good, but up close was really something else, maybe even something sketchy.
This is a reminder to approach drop shipping with caution, there are a lot of rats out there.
So how do you find a legitimate company?
1. Be observant. Paying attention to details and your feelings will help you spot the rats.
Last night I was applying for jobs and spotted what seemed like a great job opportunity that paid well. It seemed too good to be true, but I really wanted it to be real. I began the application process, but using caution provided my junk e-mail address on the form. I filled out more of the form and they asked for my social security number.
That seemed like awfully personal information to be giving out on a form on a web page the looked ancient and possibly fake. Some of the information they wanted seemed to personal for a job application, so I left the site. I got an e-mail 5 minutes later that encouraged me to apply and listed an e-mail address that led me nowhere. That settled it for me. They were trying to scam me. I’m glad I trusted my gut and quit filling out the application.
Just as the dragging tail observation made me reconsider what I saw in the street, the request for such personal information upfront caused me to question the trustworthiness of the site. Pay attention to how you feel about services and if something seems off, do some more investigation before proceeding.
2.Be willing to take a closer look. Are the costs associated with the product or service fair? “What does their user agreement say? Thankfully most companies have user agreements you can review. Do yourself the service of scanning through it to see if anything sounds fishy. Think about the risks involved. Does it have strong enough benefit to counter balance the risk involved? What kind of profit margin exists for the product or how much will you make after you take out all the selling, shipping, and handling expenses? Does it seem fair?
There are several businesses built around drop shipping these days. There are services that act as a middleman and do almost all of the work for you, but then dip deeply into your profits to pay for their services. Then there are complete scams that take your money and never provide a service. But there are also honest drop ship directories. These directories provide you with legitimate supplier information at a low cost. Beware of the directories that promise you information for “free.”
Look at the services a company really offers and then make your decision. You may want a middleman, but don’t pay for one if what you really want is a drop ship directory.





