Is Drop Shipping A Scam?

G'day from Dropship Downunder, Today we are going to be answering the question, is dropshipping a scam? So with that, let's get started.

Okay, so I've had a couple of people sort of saying that, do you think drop shipping is a scam? or do you think everything surrounding dropshipping itself or the business model is a scam? But drop shipping is just the business model. It's just a model of trade, right? Nothing is scamming about it. At the end of the day, it's just people trading goods. 

What can get a little bit dodgy from time to time, I guess, is people selling really cheap crap out of China. And it just makes it a really low, super low barrier of entry so that people don't have to invest a whole heap of money to get started in this kind of business model, right? It's not the model itself.

Dropshipping itself is old school. There’s nothing new about it. I mean, back in the day, almost 10 years ago now, I was drop shipping. Used cooking oil for the buyer, diesel for the buyer, diesel trade. I'd find a buyer of diesel, I'd find us cooking oil and palm acid oil in Indonesia, right? I broke a deal with somebody over in Rotterdam Holland, right? and I drop shipped it to them, I was the middleman, alright? so I never saw the product. I just had it tested. The numbers made sense to them. They had their own samples. They tested them, worked out fine. I didn’t buy it at wholesale but I bought it at cost price, I guess you'd call it the raw material and I sold it on to them at wholesale for their biodiesel plants, so that's drop shipping in its own right, that was over 10 years ago now.

Before I even knew what dropshipping was, I was already drop shopping, right? so it's not a new thing. There’s always been a middleman, there have always been brokers, there have always been people drop shipping. It's just that in the modern age with the online “Dropshipping” model. As I said, it can be a little bit of a low barrier of entry, which makes it easier for people that aren't necessarily working hard or not interested. They're just interested in really, really, really fast dollars, and not building a real business.

And I guess, some people...like in any business can get a little bit scammy, but the business model itself, No, Absolutely not, right? You do it, you do it right. You build relationships with your suppliers. You do the right by your customers and you send your gear out, full stop. There’s nothing scammy about it at all, right? You've got your ABN, you do it right. You got your ABN, you've set up a business, you're accountable, you've got your phone numbers, you got your email addresses, you do it all right, nothing on tour, okay? So to answer the question, is dropshipping a scam? Absolutely not.

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