In the years of dealing with small to large internet businesses I have learned that fraud no matter what the size or budget still hurts.  Criminals will always find new methods to scam you out of your money. 

The world of Dropshipping, Wholesalers and Manufacturers are not immune to scams either.  Here is some ideas on how to avoid wasting your money and getting ripped off. 

1. Be Smart.  Do some research on the website or company you are thinking about signing up with.  Do they have a relationship with the Better Business Bureau?  Have you researched them out online to see what other people are saying about them? 
2. Most "dropship companies" you find from a regular Google Search are really not legit dropshipping companies.  They are middle-men that are marking up, and not giving you the true "wholesale" price.  Knowing what your product retails and wholesales at - is a must.
3. There are big lists of dropshippers, wholesalers and manufacturers with established companies such as Alibaba that will scam you faster then you could imagine.  (This is not saying that Alibaba is trying to scam you, but hear me out) Avoid being ripped off by even a "reputable" website by following thier own guidelines.  For Example Alibaba tells you;  "If the "company" is in thier database (which is free to register - a community of sorts), but not on thier "Gold" or whatever type list that you have to pay for to be careful".  I have had several clients and business owners get ripped off by sending alot of money to a company for products only to never recieve them.  The consistant factor with all of them?  They did not pay for the "Gold" membership and took a risk.  There are certain countries that you just have to ask yourself, "Am I honestly ever going to receive products from Honduras?"

Make it easier on yourself and find dropship directory companies (like the ones found in The Shipper) that have personally gone through and done background checks on every single dropshipper, wholesaler and manufacturer in thier list.  You will be paying much more for it later on if you chose to go the "cheaper route" in dropshipping.