What is Drop Shipping or drop shipment?
Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer . The retailers make their profit on the difference between the wholesale and retail price.
Scams :
envelope stuffing, chain letters, pyramid schemes, multilevel marketing, etc.
Ecommerce and Drop Shipping :
Auctions:
Many sellers on online auction sites, such as eBay, also drop ship. Often, a seller will list an item as new and ship the item directly from the wholesaler to the highest bidder. The seller profits from the difference between the winning bid and the wholesale price, minus any selling and merchant fees from the auction site.
Guidelines to protect yourself from home business scams (http://www.michigan.gov/cybersecurity/0,1607,7-217-34396-108704–,00.html)
Don’t pay money to get a job. Never pay money to any company which promises to employ you to work at home.
Don’t believe in immediate big profits the easy way. Home-based business is just like any other business; it requires hard work, skill, advertising, good products or services, and time to make a profit.
Avoid responding to unsolicited emails promising work at home opportunities. Many unsolicited emails are fraudulent and promise easy money only to trap you.
Research and decide. Find out everything you need to know about work at home. Research on companies you will be dealing with and find out about their agreement. Take your own time to decide.
Ask other people who work at home. Ask them if the company kept its promises.
Know the refund policy. If you have to buy equipment or supplies, ask whether and under what circumstances you can return them for a refund.
Understand your legal requirements. Some types of work cannot be done at home under federal law. Look for the nearest U.S. Department of Labor in the government listings of your phone book and get information.
Too good to be true. If something appears to be too good to be true, then it probably is.
