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.