Have you ever seen a sponsored posts or advertisements on Facebook about some random gadgets available for free, where only you have to pay them is the shipping charge? It’s not a scam, but you are being fooled!
There are various posts claiming free giveaway and asks you to pay “only” shipping charge to get it. What’s the truth behind it? How can they give the watches, fidget spinners, fancy rings, pillow covers and many more things for free? Here’s the tricks behind it:
It’s not a scam though! You might get the item shipped to your location. For “internet entrepreneurs,” it’s a leverage of Facebook advertisements to make some money. How do they make profit? In simple words: They are selling you the cheap Chinese watches, rings, etc., which costs less (including shipping charge) than what you pay as a shipping charge to the advertisers.
These advertisers setup a website with a domain name matching the products they are selling with an attractive landing page. Sometimes, they use the drop shipping feature of some of the bulk online sellers in China such as Alibaba, Chinavasion, DX and many more. Drop shipping is a feature provided by the sellers where the advertisers can just refer the address and pay them and they will send the products on advertisers’ behalf!
These advertisers take risks sometimes and lose money though! Sometimes they miss the targeted advertising and they lose money to Facebook as a higher ad cost. But, before unleashing the full advertisement campaign, they test the targeting with a small cost to calculate the profit margin! It’s a business!
So, don’t be happy that you have got a Quartz watch for free with only the shipping charge of $20. You will not know that the same “replica” watch is being sold for $15 at a Chinese store including shipping charge!
Note that you are not losing any big amount here. But, the successful advertiser makes a lot of money through a fraction of profit margin from thousands of buyers!