Program was just aired (The Influencers and the Knock-Offs)

[MrWhite2018]

Source:
The Influencers and the Knock-Offs

I’m totally new to dropshipping and want to ask something, how can dropshippers get away with such scams when they can be getting chargebacks on PayPal?

 

[HaxTuTorial]

In that niche chargebacks are viewed as a loss, given the profit margins as it's knock offs being sold, I imagine it's worthwhile. As for why the paypal accounts remain afloat, paypal works differently when there are physical goods involved in the transaction. Paypal is a nightmare to deal with a seller, mostly for those using it to sell digital goods and/or services.

 

[MrWhite2018]

In that niche chargebacks are viewed as a loss, given the profit margins as it's knock offs being sold, I imagine it's worthwhile. As for why the paypal accounts remain afloat, paypal works differently when there are physical goods involved in the transaction. Paypal is a nightmare to deal with a seller, mostly for those using it to sell digital goods and/or services.

After all the headaches is it really worth it then, better to sell decent solid products and give people what they want

 

[HaxTuTorial]

After all the headaches is it really worth it then, better to sell decent solid products and give people what they want

Agreed, but demand+regulation naturally creates black markets, that despite the risks, can be worthwhile to partake in. Business of any nature generating good figures will be a headache. No such thing as an easy meal. Those partaking in the promotion of fake goods have done their maths and decided the headaches/chargebacks to be worthwhile. For those doing things the more white hat route, there are still headaches to deal with e.g higher startup costs, more focus on marketing...etc

 

[dennisyu]

Can't view that video as it's for UK only, but you sound like the government or mainstream media when you use the word "scam".

A scam is when someone markets an item as genuine, but it's not. Copying a design of an item and then selling it for $45 is not a scam, illegal sure, if it contains any tradmark or copyright. I mean unless that person is a moron and has the impression it is a genuine item.

After all the headaches is it really worth it then, better to sell decent solid products and give people what they want

There will always be a market for replica items and that traffic converts fairly easily which is why people sell those items. But of course you can make just as much money with whitehat products.

 

[MrWhite2018]

but you sound like the government or mainstream media when you use the word "scam".

I was referring to sellers that sell dodgy products and refuse to reply to customers about it. Anyways one thing I’d like to know is how do these dropshippers manage to keep the money with so many chargebacks and complaints.

Someone said they’re just banging and then shutting up shop and will rinse and repeat, I still don’t understand how they get that money to keep it and use a process like that.

 

[dennisyu]

I was referring to sellers that sell dodgy products and refuse to reply to customers about it. Anyways one thing I’d like to know is how do these dropshippers manage to keep the money with so many chargebacks and complaints.

Someone said they’re just banging and then shutting up shop and will rinse and repeat, I still don’t understand how they get that money to keep it and use a process like that.

Yeah, those are scammers and idiots, indeed.

They sell the items at least 3x its worth so they don’t care because they will still be profitable by the time their accounts get shutdown.

I’ve been watching one seller who keeps changing their domain like every other week so that’s obviously a fresh Shopify account.

My guess is they do that before they get shutdown and also to keep the chargebacks low by using multiple accounts.

 

[MrWhite2018]

Yeah, those are scammers and idiots, indeed.

They sell the items at least 3x its worth so they don’t care because they will still be profitable by the time their accounts get shutdown.

I’ve been watching one seller who keeps changing their domain like every other week so that’s obviously a fresh Shopify account.

My guess is they do that before they get shutdown and also to keep the chargebacks low by using multiple accounts.

Ah that makes sense thanks