Side Hustle Scammers: Dropshipping

Etsy is a beloved online marketplace that many turn to for unique, bespoke items. However, the popular platform has been plagued with a serious issue that is turning many customers away from the site.

During the pandemic, Etsy became a beacon for those looking to start a side hustle during high unemployment rates. Tiktoks and online articles listed all the easy-to-make products that could be listed on the site. As a result, Etsy’s stock price rose 302% at the end of 2020 from the increased traffic.

One nefarious Etsy practice is dropshipping. Dropshipping is when a seller serves as a middleman between a manufacturer and a customer. The seller simply makes the sale and outsources the production and shipping. A seller doesn’t deal with inventory, quality control, or shipping. All they have to do is find a product and market it well.

Photo courtesy of Oberlo

Dropshipping isn’t a new business practice or inherently bad. It can allow people to start up an online business by reducing the upfront cost of inventory. Not all dropshippers are out to scam customers.

If not all dropshipping is bad, why is it being called out on Etsy? As a marketplace, Etsy’s main niche is selling handcrafted or vintage items. By selling items from an independent supplier, sellers are not being truthful about where the product comes from. A typical customer would expect an item bought off Etsy to be homemade.

Tiktok user Pendantandprose described their experience with a dropshipper on Etsy. They bought what was advertised as “handmade” candles. Imagine their shock when an Amazon package with a gift receipt arrived instead. Many commenters commiserated with them and shared their own stories of being duped.

Tiktok user FlamingoLamp commented on Pendantandprose’s tiktok, “Yep. Saw earrings for $60 on Etsy when I was getting married. Had a hunch and found them on AliExpress for $3.”

AliExpress is an e-commerce site that is known for its wide range of affordable products. Sellers from across the internet often use the site to dropship items.

Etsy has yet to crack down on dropshipping sellers. Their policies don’t explicitly mention dropshipping, but they encourage members to report suspicious listings.

So how can a normal consumer spot dropshipping in the wild? Here is what to watch out for.

1. Reserve image search the product picture through Google or other search engines. Dropshippers rarely take their own photos of a product and will more often than not reuse pictures from the original post.

2. Dropshippers with often had shady or strict return policies. On top of that, they will often have lackluster customer service.

3. Long delivery times and custom charges are an indicator of dropshipping. Many of these products come from China. Unless a store is located in another country, beware of this.

Shop smart, safely, and critically by understanding what dropshipping is, and how to spot it.