SEATAOO Legit Dropshipping or SCAM? | Company Review

February 19, 2023
neilyanto

Today, someone requested me to check out Seataoo and see what I think about it based on my personal experience in dropshipping.

But before we talk about that, what exactly is Seataoo?

Seataoo is not a vegetable, okay? You might think I'm talking about a vegetable.

It is a dropshipping company based in Singapore since 2020, and they just expanded their operations here in the Philippines.

So, how do you make money with Seataoo?

There are two ways to earn money here in Seataoo.

First, by becoming a seller.

Watch the video

Second, by inviting people to become sellers on Seataoo.

Here, you earn 3% from each invite once they pay the pickup amount. For example,

Watch the video

So, this is how simple it is to earn within Seataoo.

Now, let's discuss whether this can be considered legitimate or just another type of scheme.

Before we answer that, let's first talk about the red flags I noticed on this website.

To identify if this is good or not.

But just a disclaimer, everything we will discuss today is based on my personal knowledge about dropshipping.

So, let's start.

The first red flag I noticed in Seataoo is the process of their business model.

In a normal dropshipping business, anywhere, even if you manually create your own dropshipping business, it works like this.

Let's say you have an online store or website.

One way to monetize your website is to start a dropshipping business.

Why?

Because your only cost here is really just your website, and there are many advantages to starting a dropshipping business.

The main challenge is that it is difficult to find a supplier or a legit dropship supplier.

That's why companies like Dropify, Bilisbenta, Aliexpress, CJ Dropshipping, and many others come in to solve this problem.

But you can also start dropshipping without having your own website, meaning, if you are good at marketing products

And you have TikTok, Facebook, YouTube, or any other social media account, you can use those without incurring any cost.

So, the main process in dropshipping is like this.

Let's say this is your online store, and all the products from the supplier are here on your website.

For example, the price of the product from the supplier is $30. Now, you sell the product on your website for $80.

This means you have a 166% markup price here.

Now, when someone buys a product from your website, let's say a customer buys from your website.

You will receive $80.

Now, when there is an order, it will enter your account like this.

You will pay the original price of the product to the supplier, and automatically you will have a profit of $60.

When you pay the supplier, the supplier will automatically send the product to the customer. So, this is how it works.

Now, the process in Seataoo is different.

Let's say this is Seataoo, and here is your online shop.

Now, your online shop is useless because no one will buy from it.

What happens is that all orders come from global.jd.com. So, all orders do not happen on Seataoo, making your online shop useless.

So, when an order comes from global.jd.com, even if the customer has already paid for the product, including the markup price,

The question is, what is the red flag?

What happens is that Seataoo will still pay for the product from global.jd.com before the product is delivered, which is if it comes from the seller, the seller will pay.

In dropshipping, we pay the supplier for the product because the customer does not pay the supplier directly.

Do you get it?

I will repeat, we pay the supplier for the product because the customer does not pay the supplier directly.

The customer pays us directly, to us who have the online store. That's why we need to pay the supplier before they deliver the product to the customer.

The problem I see and one of the red flags in Seataoo is,

Why do you still have to pay global.jd.com if the customer has already directly paid jd.com for the product?

Why does the seller have to pay Seataoo if the buyer has already directly paid for the product to the supplier?

Which is, all suppliers come from jd.com.

If this is the process, you only get the markup price. You don't need to pay anymore because the supplier has already received the money directly.

Do you get it?

Now, there is a big question for me, what is the offer of jd.com?

So, I checked jd.com and contacted them about the affiliation of these two companies. I am just waiting for their response.

Now, jd.com has something called JD Worldwide, which is a cross-border ecommerce platform.

What is this?

This is an ecommerce platform that provides a way for businesses, brands, or brand owners to sell to Chinese customers even if they don't have a physical store in this country.

Dropshipping and cross-border ecommerce are different.

Cross-border ecommerce is like a normal ecommerce system, the only difference is, it is a B2B system.

Meaning, for example, I am a brand owner, I will sell my product on jd.com to Chinese customers.

In short, jd.com will pay you once there is an order, not you paying them.

Do you get it?

But before you can start selling your product on jd.com, once approved, they have fees such as a security deposit of $15,000 and an annual fee of $1,000 for using their platform.

This includes the fulfillment system.

Because of this, I saw a red flag aside from their system, which is the useless online store of the seller.

Because why would you put an online store for each seller if no one will buy there? If all orders do not come from there.

Plus, another red flag I saw because of the useless online store, they are not transparent with their sellers.

What do I mean by this?

Maybe they need to answer to the sellers how they track the orders to ensure that those orders are for a specific seller.

Do they have an individual store on jd.com specific to that seller, and can they track or show people that the same person ordered from them on jd.com and the customer shown on Seataoo?

Why do they need to answer that?

To prove that they are legitimate. That they are actually selling products on jd.com.

Another red flag I noticed on Seataoo is that you earn without doing anything.

When I registered on Seataoo and published a product, I just slept, and when I woke up, there were already sales in my account without me doing anything.

I don't believe in the idea that you earn without doing anything, in this kind of system.

You are in the dropshipping business, but you don't do anything, and the company does everything for you?

For me, that's a red flag and a sign that it's too good to be true.

Another red flag I noticed is the force tactic, which is associated with something called “Advance Fee Scheme”.

This is a type of scheme where they force you to pay to get your profit.

This happens in scams involving account managers in forex, crypto trading, and the stock market.

It seems like in Seataoo, if you use common sense, you pay to have the product delivered even though the customer has already paid.

For me, wait, there seems to be something off.

That's just for me, based on my observation.

Their explanation here on why you need to pay is that they give you the opportunity to get your profit, which is why I said it is possible that this is an advance fee scheme.

The force tactic happens when you don't pay, they will delete your account or reject your account because you are not an active seller.

You become an active seller when you pay them.

Another red flag here is that all of Seataoo's traffic comes from the Philippines, 100%.

Why is this a red flag?

Because it's a dropshipping platform, but in order

Watch the video

I included this as a red flag because it's a dropshipping platform.

Dropshipping system and cross-border ecommerce are different. So, if we talk about dropshipping, this is part of the red flag.

Maybe if they become transparent, all these red flags will disappear.

As I said earlier, if they can show their store on jd.com, the backend, and the same customer who ordered on jd.com's backend and on Seataoo, the suspicions of people that this is an online scheme will disappear.

But for now, based on what we have discussed, this is possibly an online scheme.

How did I say this?

First, they promise earnings without effort in the easiest way.

Second, in this kind of system, they often partner with a well-known personality to show they are legitimate.

That this personality has no direct knowledge of what system they have.

If you remember Bitbank, they hired big vloggers to promote them to make it seem like they are a legitimate investment platform.

But in the end, it was a scam.

And third, in this kind of system, to build credibility, they often claim to be affiliated with a well-known and reputable company or business or platform.

But I repeat, if they can prove and be transparent with people and provide proof of their claims,

All these red flags will disappear.

So, you also need to study as an investor in this platform what a dropshipping system and a cross-border system really are.

Now, I ask you.

What do you think of this platform, do you believe it is legitimate?

Do you believe this is a true dropshipping business, or is it just one of the online schemes and scams that are popping up today?

Comment your answer to this question below this video so others who watch this video can also know your opinion about this platform.

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NEIL YANTO
Neil Yanto is a Video Creator and Online Entrepreneur. He helps Filipino Marketers and Online Entrepreneurs how to grow their marketing business from scratch across multiple marketing channels. READ MORE

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Hello! I'm Neil Yanto, I'm a Registered Master Electrician. I’ve been working for almost 4 years in Engineering Industry before I went to Online Marketing. I started making blogs because I want to help my fellow citizens as well as share my ideas and knowledge about Online Business. I believe online business is a business of the future. Read More

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