Simplx Review: An Affiliate Site Posing as a Dropshipper

Earlier this year, I came across an interesting business called Simplx.com.

They claim to be “The Next Generation in Dropshipping.” That’s a pretty bold claim.

(At the time, I was considering adding my own inventory to ShoeSniper and using dropship suppliers to mail the products.)

Quick Definition: Dropshipping is when the perceived seller of the product online doesn’t actually have the product on hand; instead it’s shipped directly from the manufacturer or a wholesale supplier.

It’s an attractive model for retailers because they don’t have to inventory anything and really don’t have to even buy the product until it’s already sold.

The downside is customer service issues can come up between data discrepancies, shipping delays, and processing returns.

So, Is Simplx a Scam?

Simplx isn’t exactly a scam, because they’re fairly upfront about how their process works, but more importantly, it’s probably not something that will ever make you money.

Because the service is somewhat oversold on their site, I can see why some people consider it a scam.

Here’s what I found.

Wholesale Pricing?

Simplx is careful not to advertise they can get you wholesale prices.

Why? Because they can’t.

Instead, you can buy at “up to 65% off retail.” What they don’t tell you is their “supplier” is really just an ecommerce store and their price is only a tiny bit lower than the price the store is selling to general public.

Let’s look at an example. Sorry it’s going to be shoes; that’s what I know.

Simplx was kind enough to grant me trial access to their supplier database.

If you wanted to sell some Dr. Martens, Simplx has a supplier for you. Because of their super-insider hookup, you can get these $110 Docs for the low low price of $108.

I’m no mathematician, but that doesn’t leave much profit margin to play with.

How Does Simplx Work?

So how did they arrive at that “Member Price”?

First, know that the $110 is the exact price their “supplier” Sears.com is charging to the public. (at the time of this writing)

Second, Simplx is a member of the Sears.com affiliate program, which pays a 4% commission on Men’s Shoes. They keep 2.25% of that for themselves and “give” their members 1.75% as their dropship price.

So if you were to actually go through with this deal, you would actually have to buy the shoes from Sears yourself, for full price, with your billing information, and have them shipped to whoever your customer is.

Then, you’d have to wait 2-3 months for your $1.92 profit margin to be deposited into your Simplx account, because that’s how long it will take Sears to verify the sale, pay the Google Affiliate Network and for them to pay Simplx, so they can pay you.

But all that might be moot. I think you’d have a hard time making that sale in the first place, since the same shoes are already $20 less, with free shipping, from far more reputable sellers. (at the time of this writing)

Takeaways

I’ll hand it to Simplx for running a pretty ballsy business. They charge $69.95 for access to their “supplier network” (otherwise known as the “the Internet”).

On top of that, they make money on every sale that flows through their system, and they never have to touch any products.

It’s kind of beautiful, in a way.

As an affiliate, I was pretty excited when the lightbulb went off and I figured out their business model.

But what’s to stop would-be resellers from simply joining the affiliate programs of these various stores themselves, and keeping the whole commission? Or working out some actual wholesale/dropship relationships?

I’m sure there are people making good money using Simplx, otherwise they wouldn’t still be in business after 10 years. But it’s hard to see how exactly that would happen…

If you’re a Simplx member, please share your experience with the company!

Opt In Image
Join the Nation!
Free Report: The 5 Fastest Ways to Make More Money

Join today and download the free report The 5 Fastest Ways to Make More Money, plus get actionable tips and insight to advance your side hustle each week.

8 thoughts on “Simplx Review: An Affiliate Site Posing as a Dropshipper

  1. I signed up for the program and paid $4500.00, the sales team told me “if I did not make my money back in six months, my mentor would take it over and help me.” Well initially I seemed to be working, I sold many different items on this program. The way they told me I would make my money was a “kickback,” from siplex they even have a calculator in there site so you can figure out exact commission. I sold probably 50 items, some for as much as 1400.00$. They also charged me a $40.00 monthly fee to use there site. After diligently working this for six months. I received 1 check from simplex for $100.00 dollars, They kept of changing coaches on me and never gave me all the sessions promised. Now Im trying to contact them to reactivate my account. The $4500.00 was for a life time fee. Now I cannot log in, I contacted them six months back and they assigned me another coach, I spoke to him once and the 15min. phone call was a waste of time we scheduled another session and the phone number they contact you from is none returnable. Donot sign up with this company. The sales pitch I even spoke to the president of the company who promised if I had any issues he gave me his direct line. He said look up their BBB report. However all the sales training is a sister company and I called the President and the number was no good. They make all these promises and do not deliver. I worked this extremely hard because I lost my job and have a large family.

  2. NO, NO, NO, NO TO SIMPLX!!!!!!!!
    How do they sleep at night! There is a reason they do not answer the phone. They have not returned my emails, phone calls but keep taking my money. I sent a explicit email about canceling my account. They never responded and charged me again. I know there will always be dishonest people and they need to stop hurting people trying to make an income. Shame on You :O(

  3. If anyone has a good number for this scamming website I would really appreciate it. I canceled my membership before the trial ended and they still helped themselves to my bank account. I have a copy of the email I sent so basically what they have done qualifies as theft as they were not authorized to deduct anything from my bank account. I am beyond furious! These people are scam artists and nothing but slimy. Do not use these people for dropshipping. There are a ton of other companies that dont deliberately rip people off!

    • I did the same thing. I signed up with Simplx for a 10 day trial @ $1.95. On their site they say that they will not rebill you at the regular rate after that ten days if you cancel before the trial period ends. Then they make themselves unavailable to emails, phone calls, contact forms etc. They are huge scam artists. I have tried to contact them at least a half dozen times telling them not to rebill my credit card. They have not responded once. Their phone go right to voice mail so you can speak to no one. They do not answer the site contact form or respond to email hoping to rebill you despite you demanding that they do not with appropriate notice. My trial period ends on 12/21/2014. If they rebill me I will be beyond irate. I will go after them with a fury they have never seen with BBB, my card company, my bank, their and my states attorneys general with proof of my emails and calls.
      Why can no one on the Internet try to earn a living in an honest way. Maybe that sounds naive but I just don’t get it.

      • I am amazed, This is 3/2016 and the same thing continues from 2012 until now? How do they get away with this kind sick business practice for so long.
        I have fallen into the same unfortunate situation. I purchased a membership, and now I want to cancel . Want to cancel the membership, and cannot reach them by phone or email to cancel, What the hell do I do now? just continue to let them withdraw
        $49.95 every month? If someone have a suggestion to this kind of bold face scam please let me know. Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *