The Hidden Truth About Ultra-Low Shipping Costs in the U.S. Market: What Every Dropshipper Needs to Know
- Flora
- Oct 28
- 6 min read
If you're a dropshipper or cross-border seller targeting the U.S. market, you’ve probably asked yourself:
Why are some sellers offering ridiculously low shipping costs?
How can AliExpress products with free shipping cost less than my sourcing price?
These questions often leave sellers scratching their heads, wondering how competitors manage to offer such low prices while maintaining profitability.
Today, we’re uncovering an industry secret that few talk about: fraudulent shipping methods like “Water Bills,” “Tech Bills,” and “Delayed Bills” in U.S. shipping. These shady practices exploit the USPS system, offering short-term benefits but posing long-term risks that can destroy your business.
This blog will dive deep into these fraudulent methods, the risks they pose, and how you can protect your business from falling victim to them.
Table of Contents
Understanding Fraudulent Shipping Labels
Fraudulent shipping methods revolve around exploiting USPS’s payment system. Unlike many other postal systems, USPS operates on a post-payment model. This means carriers pick up and deliver packages first, but payments are settled later. While this system is efficient for legitimate businesses, it creates a window of opportunity for fraudsters to manipulate the process.
Let’s break down the three main types of fraudulent labels and how they work:
1. Water Bills
Water Bills involve logistics companies signing credit contracts with USPS under a legitimate company name. During the credit period, they ship massive volumes of packages without paying upfront. Once the payment due date arrives, the company simply disappears, leaving USPS with unpaid bills.
This is essentially a “cyclical running away” scheme. Fraudsters use USPS services, avoid payment, change their business identity, and repeat the process.
2. Tech Bills
Tech Bills involve technical manipulation. Fraudsters use software or other technical tools to generate legitimate-looking tracking numbers that trick USPS systems into believing these are valid orders. However, no postage is actually paid for these shipments.
This is pure technical fraud, exploiting USPS’s reliance on automated systems and tracking tools.
3. Delayed Bills
Delayed Bills are the most malicious form of fraudulent shipping. In this method, postage is paid using stolen credit cards. While the payment initially appears legitimate, it is later flagged as fraudulent when the credit card owner disputes the charge.
This method not only defrauds USPS but also involves significant financial fraud, as it exploits stolen financial information.
These methods can reduce shipping costs by 30% to 50%, or even more. While this might seem like a tempting way to increase profit margins, it’s a dangerous game. Relying on these fraudulent methods is like walking a tightrope—you could fall and shatter at any moment.
The Risks of Fraudulent Shipping Practices
The consequences of using fraudulent shipping methods are severe, both for individual sellers and the industry as a whole. Let’s explore the risks on two levels:
1. Risks for Individual Sellers
For individual sellers, the risks are immediate and devastating:
Seized Packages: If USPS or e-commerce platforms discover fraudulent shipping practices, your packages will be confiscated immediately. This means your customers won’t receive their orders, leading to chargebacks, refunds, and damaged reputation.
Account Bans: Platforms like Amazon, eBay, and Shopify have zero tolerance for fraudulent activities. If your store is linked to these practices, your accounts will be permanently banned.
Revenue Loss: It’s not just about the packages that never reach customers. Payments for orders already in transit can be frozen or clawed back by payment processors. This can wipe out months of revenue in an instant.
Business Collapse: Many sellers unknowingly partner with fulfillment agents who use these fraudulent methods. When the truth comes to light, sellers lose months or even years of hard work overnight.
2. Risks for the Industry
Fraudulent shipping practices don’t just harm individual sellers—they damage the entire cross-border e-commerce industry:
Stricter Inspections: USPS is forced to upgrade its systems and strengthen inspections to combat these violations. This results in delays for legitimate shipments, as packages are subjected to more rigorous checks.
Impact on Compliant Providers: Legitimate logistics providers face increased scrutiny, leading to delivery delays and stricter customs clearance processes. This affects their ability to provide reliable service to sellers.
Erosion of Trust: The credibility of the entire industry suffers when fraudulent practices become widespread. Customers lose trust in cross-border sellers, making it harder for legitimate businesses to thrive.
The Hidden Danger: Unknowingly Using Fraudulent Agents
The scariest part of this issue is that many sellers have no idea their fulfillment agents are using these fraudulent methods. To attract your business, these agents quote incredibly low prices, making you believe you’ve found a cost-effective provider.
In reality, you’re planting a time bomb under your business. When problems arise, these agents will blame “logistics provider issues” or “customs delays,” never admitting the truth. Their profit comes from “saved postage fees,” which are gained through fraudulent practices.
By the time you realize what’s happening, it’s often too late to recover.
Why This Happens
The root cause of these fraudulent practices lies in the intense competition within the cross-border e-commerce industry.
Product costs for most sellers consist of two major components: sourcing costs and shipping costs. When sourcing costs are similar across sellers (as many source from the same suppliers or platforms like 1688), shipping fees become the key factor determining profit margins.
To gain a price advantage, some sellers resort to illegal shipping methods. This explains why you see products on AliExpress with absurdly low prices, including free shipping to the U.S. It’s not because these sellers have magical supply chains—it’s because they’re using fraudulent shipping methods.
But this is nothing more than drinking poison to quench thirst. While these methods might offer short-term price advantages, they come at the cost of long-term business sustainability and industry credibility.
How to Protect Your Business
To safeguard your business from the risks of fraudulent shipping practices, follow these actionable recommendations. Partnering with a trusted and professional fulfillment agent like ZQ Dropshipping can make all the difference in ensuring your operations are compliant and reliable.
1. Partner with Legitimate Fulfillment Agents Like ZQ Dropshipping
Don’t settle for the cheapest option when choosing a fulfillment agent. Instead, prioritize compliance, transparency, and experience. ZQ Dropshipping specializes in providing legitimate, high-quality sourcing and fulfillment services, ensuring your logistics are safe and efficient.
Why choose ZQ Dropshipping?
Verified Logistics Partnerships: ZQ Dropshipping works exclusively with reputable shipping providers, avoiding shady practices like Water Bills, Tech Bills, or Delayed Bills.
Comprehensive Services: From sourcing to quality control, fast shipping, and custom packaging, ZQ Dropshipping handles every aspect of your business with professionalism.
Proactive Communication: ZQ Dropshipping keeps you informed about the status of your shipments, so you can trust that your customers will receive their orders on time.
2. Ask Direct Questions
When evaluating service providers, don’t hesitate to ask upfront questions like:“Do you use Water Bills, Tech Bills, or Delayed Bills?”
By showing your knowledge of these fraudulent practices, you can weed out shady providers and identify legitimate ones, like ZQ Dropshipping, who prioritize transparency and compliance. Legitimate agents will appreciate your professionalism, while fraudulent ones will likely back off.
3. Monitor Your Logistics Data
Keep a close eye on your logistics data. If you notice abnormally high rates of lost packages, delays, or tracking anomalies, it could be a sign that your agent is using fraudulent methods.
With ZQ Dropshipping, you’ll have access to reliable tracking systems and detailed shipping reports, making it easier to monitor your logistics performance and identify any potential issues.
Why ZQ Dropshipping Is Your Trusted Partner
As a leading provider in the dropshipping industry, ZQ Dropshipping is committed to helping sellers succeed by offering compliant, transparent, and efficient logistics solutions. By partnering with ZQ Dropshipping, you can avoid the risks associated with fraudulent shipping practices and focus on growing your business.
Ultra-low shipping costs often come with hidden risks.
Long-term success in cross-border e-commerce must be built on compliance and integrity.
Protecting your business starts with choosing reliable partners and staying vigilant.
As a sourcing agent with years of experience, I’m sharing these insider secrets to help you avoid costly mistakes. If this information helps you, please share it with your peers.
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