Wednesday, May 2, 2007

Shopster is Deceptive

I'm a stay home dad. I recently searched the internet for drop shipping companies to sell products online. I like the idea of using a drop shipping company because this way I don't have to worry about warehousing the products myself.

After searching for a few days, I happened upon a company called Shopster. What drew me towards this company was in their advertising. They claim that by joining their company, I could make "Unlimited profits".
This is how Shopster works: They offer members a website where you could sell items from their warehouse. Shopster deals with suppliers who will ship the item once sold from my website that Shopster provides. Shopster also advertises that they store over 700,000 products. That also sounded appealing to me because I new I should be able to find a product that I'd be able to sell with 700,000 to choose from. My membership cost me $330.00 for the year.

I bought a couple of domain names and opend up a couple of stores online and had Shopster host them. I designed the sites and between the two I was allowed to showcase up to 1000 products. I launched a sports autograph store first. Baseball autographs, football, etc. The site looked very professional and I designed a logo and was very excited about it. I advertised using Google adwords and allowed advertising on my site using Google adsense. I handed out business cards. I had a my space account and did everything I could to draw traffic to my site. In one month over 4000 people visited my online autograph store. No sales.

So I tried a second site selling a variety of different products. Electronics, video games, beauty products, music, etc. I paid an additional $99.00 a year for the second store. Again I advertised using Google. Still nothing. Shopster offered a community forum. I began posting. I made adjustments to my sites. Again, nothing. Then I began reading some of the posts. Some of the other members were posting that the prices that Shopster offers were too high. So, I began to research this myself. I found I could purchase many of the products that Shopster offers for a lower price at retail stores like Wal-mart, Best Buy and Circuit City.

I posted this information on the Shopster forums hoping to get a response. Shopster responded with, "I know our prices are high. It's not always about price. You have to give it a year. We are working on getting lower prices." Then I receive an email from an emplyee of Shopster stating he deleted my post about prices and that if my attitude didn't change, he would permenantly ban me from using the forums. Yes, I was being censored by Shopster. Two days later I was kicked off the forums because of a post I made about liability. To say that I was angry would be an understatement. After all, the forums are supposed to be for helping the members of the community.

A few days later I received an email from a potential customer telling me he was interested in a Mickey Mantle signed baseball but found it for half the price at another website and purchased it there. It turned out that nothing I was selling on my site was competitive. I don't expect to always have the best price but I expected to be in the ball park.

Shopster is basically stealing money. Before joining, I was sucked in because they claim I could make "Unlimited profits". In a recent ad, Shopster also claims to have 700,000 products at "Wholesale prices". When they say "Make unlimited profits" their prices need to be competitive in order for me to make any profits; Otherwise it would be like purchasing products from your local retail store and trying to sell them on the internet. You just don't do that. It doesn't work. Shopster is getting products from their suppliers at a low price, then they jack up the price 300-500% and expect their members to offer the products on their sites and make "Unlimited profits". For this, Shopster is misleading and uses deceptive advertising in order to get customers to sign up. This company is running a scam and I've reported them to the BBB amongst other consumer agencies. I've requested a full refund and their statement about making "Unlimited profits" is going to be challenged.






33 comments:

Mom23Girls said...

Yes, you are so right. I have had a similar experience with Shopster. Excellent Blog!!

Anonymous said...

I can understand how you feel but you did have 7 days to leave if you wanted to.

Randy said...

In the 7 days shopster gives you to decide if you want to continue with the membership, most of your time is spent building your website. Shopster misleads people with terms like "Unlimited profits" or "Wholesale". I took them at their word. By the time I figured out Shopster is a fraudulent and deceptive company, my free trial had already expired.

Anonymous said...

Well, I agree. You had seven days and shopster is NOT deceptive. There are many people using shopster that disagree with you. Just because your site didn't do well doesn't mean that shopster is the bad one here. You can't blame shopster if you don't know how to market online. Shopster is just like anything else online. It takes time to build traffic and customers. Then you get the good customers that keep coming back. You are very wrong about Shopster.

Randy said...

The thing here is Shopsters prices were not competitive. Many of their "Wholesale" items could be purchased at retail stores for less.

Anonymous said...

shopster's prices are not as outrageous as you have made them out to be. I have checked for myself.

Randy said...

Like I've stated before, 138 products from Shopster's Warehouse are documented to be cheaper at Wal-mart, Best Buy, and Circuit City. Of course I could not go through Shopster's entire inventory and I realize the invertory goes through changes daily but when Shopster advertises 700,000 products "Wholesale" and I can get selected Shopster items for less at retail stores then it would be like purchasing items from your local retail store to sell them on your website. People don't do that. Consumers aren't that dumb. Yet, this is what it's like when you join Shopster.

Anonymous said...

In this technologically advanced day and age, Shopster.com is the best and most user friendly ecommerce system I’ve come across yet. For someone who is a serial entrepreneur, always on the hunt for the next best thing, Shopster.com makes me smile all around. There really is no easier way to start and run a new ecommerce business.

Anonymous said...

It's funny how all of the "anonymous" people love Shopster. If you love getting robbed blind by hidden fees and jacked up "wholesale" prices, by all means, continue to allow yourself to be fooled by this much less than honest company. I had to complain to the BBB just to get Shopster to stop keeping my profits. Not only did they admit their Agreement was missing key terminology (that translates into Shopster keeping up to 75% of your profit), but they gave me my money back too. Complain to the BBB and you, too, will get your wrongfully kept profits back. The rest of you suckers can keep right on being suckered.

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