I found this online it describes this service exactly. It was on a websites scam watch page. That cant be good. Here is what it says:
Dealer Networks
In order to earn the most possible profits on the products you sell online, you must work directly with genuine wholesalers. Anyone who gets in between you and a real, factory-authorized Wholesaler is simply turning your order around to someone else, and taking a profit from it. That profit should you yours, not theirs!
The so-called Dealer Networks that you'll see advertising as Drop Shippers and Bulk Wholesalers are just that. They are middlemen who get in between you and the real wholesalers.
There are some Dealer Networks that claim to be wholesale suppliers of tens of millions of products. That's not true. There is no single wholesale supplier that is anywhere near that large.
There are some Dealer Networks that claim to be wholesalers of a huge variety of Brand Name products. That's not true either. They are simply passing your orders on to the real wholesalers of those Brand Names, and cheating you in the process by taking part of your profits.
There are some Dealer Networks who claim that you'll earn from 50% to 95% profits using the "Networks". This claim is simply ridiculous, and common sense tells us it simply doesn't happen.
There are some Dealer Networks who will tell you that they control the number of Dealers in the Network, so that the products you sell never get "saturated" (have too much competition). That's not true. They will sell to anyone who falls into their clutches, no matter how much competition it creates.
There are even some Dealer Networks who actually tell you to multiply your shipping charges to your Customer by up to five times the actual cost you pay for shipping. They tell you that this is how most profit is earned on the Internet. This is not only a lie, it is actually illegal on eBay.
That, though, is probably the only way you'll earn any real profit with a Dealer Network.By cheating your own Customers on your shipping charges. The people who tell you to do this know that they are telling you to cheat your own Customers.
How to tell if you're looking at a Dealer Network:
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The words "Dealer Network" may appear somewhere in their site pages.
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They may imply that they are a combined wholesale product source of millions, or even tens of millions of products.
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They may claim to control the number of "Dealers" in the "Network", so that your competition never gets too serious.
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They may claim to be a single wholesale source for dozens of unrelated Brand Names. Some even claim to use companies like Wal-Mart as a wholesale supply source. Wal-Mart is NOT a wholesaler; they are a retailer. They are (illegally) using the name recognition of companies like Wal-Mart in order to give you a false feeling of confidence in their "Network".
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They will not explain any fees associated with their "Network" until after you sign up with them. Then, you will most likely be charged a monthly or annual fee to be a part of their "Network".
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They may tell you to cheat your own Customers by raising the shipping costs you charge. Again, this is highly immoral at best, and it is illegal on eBay. It shows that these Dealer Networks know that you can't make money with them unless you cheat someone somehow. Check the Dealer Network's shipping policies or FAQ to see what they say about shipping.
This is a form of the dreaded Multi-level Marketing scheme, and contains elements of other internet scams as well. Some small group of people creating a web site that weasels into the middle of the transaction that should be between only you and the real wholesale supplier. It may not be illegal, but it is certainly immoral, and it is designed to take your money and leave you as nothing more than someone else's commissioned salesperson, possibly having to cheat your own customers in order to earn a profit.
Nobody lasts long in business that way, whether online or anywhere else.
This company claims to be a dealer as described and has RIPOFF OR SCAM written all over them.
Research before you buy and lose your hard earned money. They wanted me to pay just to talk to me. That was my first red flag. I did my research and my assumptions look to be true.
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