Michigan Attorney General Dana Nessel warned of another scam this holiday season: drop-shipping.
Drop-shipping is when an individual or entity sets up a website and sells products that the seller does not actually have. Nessel said when an order is placed, the seller sends it to a third party who then ships the product directly to the buyer.
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While drop-shipping is not illegal, Nessel said consumers are essentially paying more than what a product costs for someone else to order the product for them.
“It’s important for Michiganders to be extra careful when shopping online,” Nessel said. “In one’s eagerness to purchase a gift or other necessities this holiday season, consumers run the risk of falling into a scheme that will cost more money than it should. Drop-shippers may attempt to lure in customers with flashy websites and products that appear to be on sale, but consumers must be cautious that the websites they are visiting are legitimately run operations.”
Nessel said 'drop-shippers' could trick customers about where the product is coming from, going as far as using stolen photos from brick-and-mortar stores to trick customers into thinking the seller has a physical location.
To avoid falling victim to a drop-shipping scam, Nessel said to:
- Research the product AND the seller.
- Do an online image search of the product that the seller has posted to see where the product is coming from, how much it really costs, and who else is selling the product.
- Compare prices for the same or similar products from other sellers.