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Nessel warns of drop-shipping scam during holiday season

Posted at 10:26 PM, Dec 15, 2020
and last updated 2020-12-15 22:26:24-05

LANSING, Mich. — Michigan Attorney General Dana Nessel is warning of another scam this holiday season, this time related to drop-shipping.

Drop-shipping is when an individual or entity sets up a website and sells products that the seller does not actually have, according to a news release Tuesday.

When an order is placed, the seller sends it to a third party, who then ships the product directly to the buyer.

Consumers are essentially paying more than what a product costs for someone else to order the product for them.

While drop-shipping is not illegal, there is a lot of room for problems and abuse for buyers and sellers.

“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 try to lure in customers with flashy websites and products that appear to be on sale.

Some will also use stolen photos from brick-and-mortar stores to trick customers into thinking the seller has a physical location.

In some cases, the product seen online may not be the product a customer receives – or worse, they may never receive the product at all.