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  • Derick Ho

Is Dropshipping a Scam?

Updated: Aug 11, 2019

Is dropshipping legit – or just another scam? In this post, we will address one of the most common questions we usually get asked. Read on to find out the truth about dropshipping, and why people apparently think that dropshipping is a scam.


You would have probably come across Facebook Ads and YouTube videos of "gurus" advertising and claimed that they have gone from zero to millions just by simply doing drop-shipping. Well, it’s very common to see a person comment the following examples under Facebook Ads and YouTube videos.

  • “Drop-shipping is basically lying to customers to get more money from you”

  • “The stuff that you sell is a useless piece of trash”

  • “SCAM SCAM SCAM”

And in today’s article, I’m going to talk about the reasons why people have these concerns. I’ll be addressing the most common question people are concerned in regarding whether dropshipping being a scam:


Is dropshipping a Scam?

As mentioned above, NO – dropshipping is not a scam.


The truth is, the reason why so many people think of dropshipping as a scam because they themselves are looking for get-rich-quick-schemes.


Contrary to popular belief, dropshipping is not a get-rich-quick scheme.

I hate to say this – most people easily fall for such big promises that false “gurus” usually put out there.


"$10,000 in 30 days? Sign up now for this 2 day only limited offer!"

"Do you want to own a Lamborghini Aventador for just $2500?"

"How to earn 6-figures per month and enjoying your vacation at Maldives at the same time?"


They then purchase the training course created by this false guru, assuming that by following all their steps, they will be guaranteed $10,000 after 30 days, or maybe even enjoying at a beach at Miami.

The million dollar dream in Maldives

And guess what? As they get near to 30 days, and still have not earned a single cent online, the doubt starts to built into their mind.


“Oh fuck, I thought [enter name of guru] said I would be making $10k at the end of the month. I knew it was a scam.”


At this point, this person firmly believes that dropshipping is a scam because they bought into the false belief from the so-called "guru" that they would make thousands of dollars in such a short span of time – (on a sidetrack: this tactic is promising huge rewards with the least amount of pain. Seasoned marketers would definitely know this.)


Unfortunately, these people are simply looking for "get-rich-quick-scheme". No such thing exists. And if any "guru" would start telling you of such magic money tree, please grab hold of your hard-earned money and run away from that "guru" as far as possible!


Well, it is true that dropshipping is super easy to start, and doesn’t require much to get setup either. Basically, it is a low entry barrier to start your own business.


You don’t need thousands of dollars in your capital start-up money. In fact, a good start-up budget for your store is only USD $500-$1000. Majority of the budget will be spent on ads anyway.


As rosy as it may appear, there’s still one thing you must understand: it is still a BUSINESS.


That being said, I would like you to change your mindset and adopt these 2 following things that would eventually set you off for success in your dropshipping business:


#1 Commitment

You will still need to put in your own effort and work into your online business. You will need to put in work to make it look professional. You will need to put in work to set up ads and test products. You need to kick yourself in the ass if you don't feel like working.


There isn't any "shortcut" or "magic loophole" to earn massive income with half-ass effort. The only shortcut and magic loophole to earn massive income is your own commitment.

Your daily commitment is a long and dreadful journey, but it's one step closer to your desired goal.

#2 Trial & Error

I'll be upfront brutal with you. You are unlikely to have instant success – it is going to have a learning curve. It took me close to a year of multiple trials and errors in order to understand this particular field.


From product-to-theme suitability to sourcing the right suppliers, ad-writing, web designs, backend logistics, customer services etc. If you are hoping for instant success, then please do not start this business. No business can guarantee you that you will instantly start making money and anyone who claims so is a liar.


Think about it. If someone came to you and said “I opened a cafe. And guess what? No one bought any coffee! I had to shut it down! Cafes are huge scams!”


Doesn't make sense right? You would most likely look at them and say, “No, cafes aren’t scams. You probably just didn’t run it right.”


The same applies to someone who tries dropshipping and fails. It’s not that dropshipping is a scam: they just didn’t run it right.


The Bottom Line


End of the story, there aren’t any actual “secrets".


The honest truth that nobody will ever gonna tell you – this "secret" word is just some marketing tactic; it triggers curiosity in the reader’s mind. It makes them think “What do THEY know that I DON’T?” But in reality, there isn’t any secrets being kept away from you.


If you are buying a dropshipping course with the mindset of learning these so-called dropshipping secrets, or hacks or tricks or even hoping that it is some magic money tree that can’t be found anywhere else on the internet, then you are going to be very disappointed.


The truth is most information can be found on the internet for free. It is just extremely disorganized. In short, you will not know where to start with.


That is why if you are looking to buy a dropshipping course, you should invest your money with the mindset of learning the ropes in the form of coaching.


Why? Well there are three reasons in particular.

1) To have step-by-step information that is outlined in an easy-to-follow system/way.

2) To get access to premium apps and tools that you can’t get for free.

3) To get 1-1 support, coaching and training.


Don’t be fooled by false claims of "get-rich-quick-schemes". Remember: the harsh truth is that these false gurus only want YOUR money for their benefit. They don’t really care about you or your success. Simply put – because the coaching industry is so damn lucrative. With so many people looking for the magic money tree, who wouldn't want to make a killing from their greed by selling dreams to them? With great demand comes infinite opportunities.


Conclusion

To end off, I know these aren't the things that you guys would like to hear, but remember – I'm not here to be well-liked. I'm just stating the hard truth of what lies ahead of your dropshipping business. If I prefer to be liked, I would just simply set up a charity organization: a perfect way of getting massive likes and approval from the general public.


Whether it is dropshipping, Amazon FBA, social media marketing, affiliate marketing, or any other kind of business, every single business requires hard work, commitment and dedication before having success. The grass is NEVER greener on the other side.

Established 2012 by Derick Ho. All rights reserved ®