Work
at Home the Lazy Way 
Genuine wholesalers
and Dropshippers are very hard working, but what about the rest of
the bunch?
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In a day
and age where anyone can sell anything to anyone…it
is no surprise that these very clever internet entrepreneurs want in on the
action. There
are many, many internet based Wholesalers and Dropshippers that technically,
do not offer any more than you would expect from a large high street store.
The internet wholesaler will more than likely, actually be a Dropshipper. Let
me explain a little more about the Dropshipper, as it is a relatively new exercise
in this impenetrable market...
A Dropshipper, will effectively dispatch their goods to any
specified address…and
address all receipts and invoices to another. This is a very effective way
of doing business as it eliminates one link in the postal chain. Real, genuine
Trade Wholesalers have actually been operating in this way for decades…it
is not a new concept. It is only new to the ‘average Joe’ internet
pawn.
I use the description ‘pawn’ in
a very deliberate manner...so please don't take offense. This is because
in order for these companies to operate, they need
to employ a huge
amount of man power to fulfil all of their orders. How would the Internet Dropshipper
operate this, when the market is so very highly competitive?
" The BAD
Dropshipper is effectively another pyramid scheme. They will not actually
employ anybody
(other than
themselves), but will charge
a membership fee for
their services as a ‘warehousing and logistics’ company. Well,
that seems fair enough I suppose…doesn’t it? "
Let me tell you where
the entire Dropshipping industry falls way off the scales in terms of fairness...
Take you, yes you for example. Lets say you wish to start trading
in computers. You find a Dropshipping company and, not surprisingly find
they will not divulge
any trade prices openly on the world wide web. To view the ‘trade discount’,
you will have to sign up for a fee. In 2008, these fees range from £10
for a lifetime membership to £100 per year. Where does this huge cost
difference manifest itself? Well, you will find some Dropshippers are better
than others, you will find some have greater product ranges, better customer
service…but does that justify this cost deficit? No. Be it a banana or
the newest phone on the market, it will still cost relatively the same amount
to process, pick and despatch the goods. The higher the price normally means
the more confidence the individual at the other end has. Often, the prettiest
website and the promise of bigger discounts!
These false
Dropshippers work on a very similar principal as the GRQ gurus. They pray
on the naivety
of an individual looking for yet another way to ‘GET RICH
QUICK!’.
These businesses offer
no more than a laughable discount, often 1 - 5% off the RETAIL value. This
discount off the retail value of any product,
is in
no way shape or form sufficient to generate a decent profit, let alone make
you competitive to enough to even sell it! Your local retail outlets will buy
in greater bulk than any internet Wholesaler or Dropshipper, and therefore
beat any price you will see offered on these websites. Genuine internet retailers,
will offer these products at an even greater discount than those on the high
street. You are on a losing streak here I’m afraid. The spoof Dropshipper
will be praying on the negligence, laziness and naivity of
those willing to try anything to make themselves richer.
The Dropshipper, makes
his or her money from membership fees. But it is not even as simple as that.
I mentioned previously, that many Wholesalers are actually
Dropshippers. New Dropshippers are part of a pyramid scheme and do not sell
anything of any real value. How so?
In one very simple description,
they are just one, in a very long chain of dropshippers. They will 80% of
the time, not hold any of their
own stock…but
use, yes, you guessed it…a Dropshipper, who will in turn use a Dropshipper,
who will use a…etc etc. Trace this far enough back and you may well find
a genuine Wholesale outlet that will, like the many other’s have been
doing for years…deliver goods to an alternate address.
So there you have it,
there may well be a legitimate business somewhere that this
can be traced to. But somewhere in the timeline of internet entrepreneurs,
an
individual found
a way to exploit this service and sell it to tens of thousands, if not millions
of innocent people looking to make an easy buck!
Again, this is all perfectly legal. The service you pay for
is the service you get. By using vague descriptions and loosely binding contractual
agreements,
these individuals have raked in millions, using no more than a web page with
automated payment facilities and automated email/order generating…
Do yourself a favour
and question the authenticty of any dropshipper, there ARE some very
good ones which have unfortunately suffered because of the bad ones...
Added by: Administrator
MW01
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