Learning how to differentiate legitimate home business opportunities from scams is important.  At first glance, all work-at-home businesses or dropshipping businesses offered in the market may seem genuine but once you take a closer look, you’ll see that many of these opportunities are actually rip-offs. Take a look at the following signs of home based business or dropshipping scams:

No track record of history. One of the best ways to find out whether a dropshipping opportunity is fake or real is by checking the dropshipping company’s track record.  This isn’t possible if the company is too new or has only been in the business for a few months or less than a year.

Find a dropshipping company that has been in business for at least 5 years or longer so you can use its track record to check its legitimacy and stability.  Also, check from the Better Business Bureau if the company has received any complaints from its clients in the past.  If there were complaints files against the company, examine how these conflicts were resolved.

No physical address and telephone number. A real dropshipping provider must have a physical location where its main operations take place.  Whenever possible, personally visit the manufacturer or supplier you intend to partner with.  If it’s not possible to visit, check the validity of the address that the dropshipper advertises.  Perhaps you may ask some friends or relatives who live near the area to check out address for you.

Most dropshipping scammers use fake addresses or do not give out this important information at all.  Scammers often request interested applicants to call their cell phone number or send an e-mail to get more information.  Instead of using their office, seminars may also be held in hotels, parks, diners and other public places.

Pay now, earn later. Are you requested to send in a one-time payment through money transfer?  Are you required to pay a “registration fee”, or “membership fee”  to get hired.  If so, then this is a major red flag that the dropshipping business could be a scam.  If you’re encouraged to invest a considerable sum of money to receive your “starter kit” or “sales kit”, it would be best to look for another opportunity that doesn’t require any payment.

Product descriptions are not clearly defined. What exactly does the dropshipper sell?  What kind of products does it offer?  Is it know to manufacture or supply high-quality products?  Real dropship providers should be able to clearly define what they offer.

To be sure, it’s wise to ask for samples of the products that you’ll be marketing.  Do your own research and find out feedbacks from customers who had the chance to use the product.  Are they satisfied with the product they received?  Was their order delivered on time?  Did the product arrive in good condition?  These are important aspects of the dropshipping products you need to know.