I hear from people all the time who have lost a ton of money selling products online because they were scammed and received a fraudulent order. Just today I heard a disturbing story about a person who was using a drop shipping company to sell products on eBay. The person who bought the electronic (first hint that it could be fraud if its electronics and they want you to ship overseas) was asking for special request like "I want to buy this for a family member and ship it to Nigeria". Most that are new to drop shipping and Internet business are excited to get their first order and all they can think about is the profit. They do everything they can to get the order processed properly (and fast to not make the buyer mad) and find out after then order has shipped that they credit card, or payment used was fraudulent and they see none of they money.

The problem is they have already bought the item from their drop shipper and shipped it out. They are the ones that have lost, and are out of the money. The drop shipper can't do a thing about it, and you really are left with the bill. I have seen some people taken for as much as $5000.00 in one transaction from shady deals like these. I do not want that to happen to anyone who reads this article. That is why I am writing about this not so pleasant "dark side" of drop shipping.

Here is my advice: If you are doing business in the US, then make sure most of your first transactions are done in the US (so you can get a better understanding of the business you are in). Do not be to quick to fulfill an order overseas without doing your homework. I would call your merchant account company, or bank and ask them what are the proper steps to take in order to confirm an overseas payment. If you ship out quick because you are "giddy and happy", or because its your "first order" this is how those that run these scams operate - they feed on those kind of people that are so new and green to the industry. Think first, and be smart about the transaction at hand. If you do, you could end up saving yourself a lot of money and heart ache. You do not want your first business transaction to be a bad experience.