How to Avoid Getting Scammed by Fake Suppliers
Starting an online business, whether dropshipping or wholesale, can be exciting. You’re filled with ideas, products you want to sell, and dreams of making consistent income online. But here’s the truth: not every supplier you come across is genuine. There are fake suppliers out there whose only goal is to take your money and run.
I’ve seen many beginners fall into this trap simply because they didn’t know the signs. And I don’t want you to make the same mistake. That’s why in this article, I’m going to share with you exactly how to avoid getting scammed by fake suppliers, what red flags to look for, and how to protect your business (and your bank account).
If you’re serious about building a long-term online business, this is advice you cannot skip.
Why Fake Suppliers Are a Problem
Fake suppliers are more than just an inconvenience—they can destroy your business before it even starts. Here’s why:
You lose money upfront. Scammers often demand large deposits or full payments and then vanish.
You lose your reputation. If customers don’t get their products or receive poor-quality goods, they’ll leave bad reviews, and your brand will suffer.
You lose time. Weeks can go by before you realize you’ve been scammed, and by then, it’s too late.
The reality is, fake suppliers don’t care about your business dreams. That’s why it’s up to you to stay sharp and only work with verified, trustworthy suppliers.
Red Flags of Fake Suppliers
So, how do you know if a supplier is fake? Here are the biggest warning signs you should never ignore:
No verified business information
A real supplier will always provide their business registration details, tax ID, and a professional business address. If you can’t find this information, be cautious.
Prices that are “too good to be true”
If a supplier is offering products at 70–80% below market price, it’s usually a scam. Legitimate suppliers work on thin margins—they can’t afford to practically give things away.
Poor website design & lack of professionalism
Scam websites often look rushed, full of spelling mistakes, or have very few product details. A professional supplier invests in their online presence.
No clear return/refund policy
If they don’t clearly explain how returns and refunds work, you should walk away.
Asking for large upfront payments
Real suppliers may ask for small deposits, but they will never demand thousands of dollars upfront without proof of trust.
How to Research & Verify a Supplier
Here’s where most beginners go wrong—they skip the research stage. Don’t do that! Take the time to check every supplier before committing.
Check company registration & licenses
Look up the supplier in their country’s business directory. Most legit businesses are required to register with government authorities.Read reviews & testimonials from real customers
Search the company name + “scam” or “review” on Google. See what comes up. If multiple people are complaining, stay away.Use directories wisely
Sites like Alibaba, SaleHoo, and Doba can be useful, but they’re not foolproof. Just because a supplier is listed doesn’t guarantee they’re legitimate. Always double-check.Verify supplier contact information
Call them, email them, even video chat if possible. Scammers usually avoid direct communication.Ask for product samples
A real supplier will gladly send you samples at cost or for a small fee. If they refuse, that’s suspicious.
Safe Payment Methods to Protect Yourself
One of the easiest ways to protect yourself from scams is by using the right payment method.
Use PayPal, Escrow, or credit cards. These offer buyer protection and dispute resolution if something goes wrong.
Avoid wire transfers or Western Union. Scammers love these because once the money is sent, you’ll never see it again.
Negotiate payment terms. Instead of paying everything upfront, split payments (for example: 30% deposit, 70% after shipping).
How to Build Long-Term Relationships with Trusted Suppliers
Once you find a reliable supplier, treat them like gold. Long-term relationships are the secret to successful dropshipping.
Start small. Place a small test order first to confirm product quality and shipping times.
Communicate regularly. Don’t be afraid to ask questions about inventory, shipping, or policies.
Look for written agreements. A clear contract protects both you and the supplier.
The more trust you build, the better deals and support you’ll get over time.
🚀 Ready to Start Your Dropshipping Journey?
Learning how to start dropshipping with no money is just the first step. If you want a clear roadmap with proven strategies, I’ve put together a Free 4-Day Dropshipping Training that will show you exactly how to:
Pick winning products that actually sell
Set up a store without wasting time or money
Drive free traffic to your store and start making sales
Take your first step toward building a profitable online business today! No email require!
Common Scams to Watch Out For
Here are some of the most common supplier scams you’ll encounter:
Counterfeit products – Selling fake branded items like Nike or Apple at dirt-cheap prices. Not only is this a scam, but it can also get you sued.
Hidden fees – Some shady suppliers will suddenly add “shipping costs” or “customs fees” after you’ve paid.
Fake dropshipping directories – Websites that claim to list “exclusive suppliers” but only sell outdated or fake data.
Disappearing acts – The worst one: you pay, and the supplier completely vanishes.
Best Practices for New Entrepreneurs
If you’re new to eCommerce, here are some best practices to keep in mind:
Always compare multiple suppliers before choosing one.
Use trusted platforms instead of random websites you’ve never heard of.
Don’t rush. Scammers love to pressure you with “limited time offers.” Take your time to verify everything.
Trust your gut. If something feels off, it usually is.
Conclusion
Getting scammed by a fake supplier is one of the most painful mistakes an entrepreneur can make. You lose money, time, and possibly even your reputation. But the good news is: with the right knowledge, you can avoid it.
Always look for red flags, verify every supplier, use safe payment methods, and start small before going all-in. Remember, in business, it’s better to be safe than sorry.
Learn from others’ mistakes (including mine) so you don’t repeat them. Protect your business, protect your money, and only partner with suppliers you can truly trust.
Your future success depends on it.