Is dropshipping legal? This is the kind of question that runs through the mind of many entrepreneurs when they come across this business model that involves selling items that you don’t physically own. After learning how the dropshipping model works, knowing how easy it to make a good amount of money, many beginners wonder how good the deal is and if it is even legal. If you are one of those people who are wondering if dropshipping is legal or not, this article is going to cover all legal issues related to dropshipping. Let us find the right answer together.
What is dropshipping?
Dropshiping is a type of business model that makes it possible for you not to buy any products in advance. What you have to do is to ask the original manufacturer or supplier to ship the required product to your customers directly. You just create a good-looking online store, do some research on niche and products so as to fill your website with the best possible goods that have high demand in the market. After this, you have to put in place some measures and strategies to attract possible customers and offer them your outstanding products.
The profit you receive here is the difference in price between what you set in your website and the original price that is set by the supplier or manufacturer of the product, minus advertising expenses if you have done so. This is how the whole process of dropshipping works.
We don’t have any form of illegality or wrongdoing in this model. It is for this reason, we have a lot of dropshipping websites on the internet right now, and the rate just keeps getting higher. If dropshipping was an illegal business, then it would not be very easy to get any useful information concerning dropshipping, make a dropshipping website or have software for dropshipping websites. Thus, this means it is legal for anyone to create their website and start a dropshipping business.
So is dropshipping legal?
The answer to this question is yes! We don’t have any laws or any policies or jurisdiction by any government or state that makes dropshipping businesses unlawful. The only thing that has emerged is regulations on its operations. As a dropshipping agent, we have some rules which you have to adhere to by some countries and the dropshipping platforms you will be registering with. Some platforms such as AliExpress are encouraging dropshipping as they’re working on widening their market base.
Is dropshipping allowed on leading online platforms?
All major online platforms allow dropshipping businesses; the only difference is that each platform has its own rules. Let’s look at some of them.
This is knowingly the largest marketplace platform. It has more than 6 million sellers. It is very useful for any dropshipper to consider Amazon to attain their dropshipping objectives. But is dropshipping legal on Amazon? Yes, dropshipping is allowed on Amazon, but it does not allow one to drop ship from other sellers who are already inside the platform or Amazon itself. You can only be dropshipping from non-member suppliers provided you adhere to its terms and conditions. These include;
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- Your name must appear in your slips, tags, receipts and any other relevant documents.
- It will be best if you bore the responsibility of the items customers return.
- It only allows you to sell your products and as a merchant fulfilled.
You can also do dropshipping with the eBay platform. What you have to do is to have your account with them, have the right supplier that is reliable, and begin to list your products on eBay. One of the regulations on eBay is to fulfill your product delivery order in less than 30 days.
There is an ongoing rumour that eBay is tracking down dropshippers and closing their stores. But to this day, drop shipped products are still evidently large in the platform. It is not clear if they are only after the obvious sellers who break TOS (Terms Of Service) or they are slowly eradicating dropshippers from their platform.
Dropshiping is legal here; this is another great platform where you can kick start your dropshipping business. It has an exceptional and unique structure that help drop shippers in two ways;
- Dropshiping on AliExpress
Under this structure, you create a shop on Aliexpess and use it as a point for selling your products. This option is, however, available for Chinese citizens.
2. Dropshipping from Aliexpress
Under this structure, you will have to create your eCommerce shop and link up with AliExpress as your supplier. This is an excellent chance for you, as you will enjoy the reliability of AliExpress.
It is now clear that dropshipping is a legal venture and is allowed on all major online trading platforms. If there is one thing to consider before opening an account to dropship, read TOS carefully to avoid future major headaches.