Is Dropshipping Legal? [2023] - Shopify Theme Detector
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Is Dropshipping Legal?

Last modified: June 15, 2023

Is Dropshipping Legal?
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There are concerns among people who are new to eCommerce world that dropshipping is not a legal way to sell online. So let’s look at some of the concerns and ask, is dropshipping legal?

Recommended: 24 Best Shopify Dropshipping Apps [Dec, 2023]
# Name Image
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AutoDS
AutoDS
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Spocket-World Wide Suppliers
Spocket-World Wide Suppliers
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Syncee - Global Dropshipping
Syncee - Global Dropshipping
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Printful-Sell Printed and Embroidered Items
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Sup Dropshipping
Sup Dropshipping
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Zendrop - Dropshipping & POD
Zendrop - Dropshipping & POD
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Dropshipman: Dropshipping & POD
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AO - AliExpress Dropshipping by FireApps
AO - AliExpress Dropshipping by FireApps
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Trendsi - Fashion Dropshipping
Trendsi - Fashion Dropshipping
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CJdropshipping
CJdropshipping
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DropCommerce
DropCommerce
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Modalyst-Sell Brand Name Products
Modalyst-Sell Brand Name Products
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Ali Orders-Fulfill Orders Easily
Ali Orders-Fulfill Orders Easily
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Blanka - Private Label Beauty
Blanka - Private Label Beauty
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Dropified-Automate Your Dropshipping Business
Dropified-Automate Your Dropshipping Business
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ProductPro
ProductPro
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Spreadr App
Spreadr App
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Importify
Importify
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Inventory Source
Inventory Source
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Roxie
Roxie
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Fulfillbot: Dropshipping Agent
Fulfillbot: Dropshipping Agent
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Oberlo-Get the Best Produtcts for Your Site
Oberlo-Get the Best Produtcts for Your Site
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1. Buyers Don’t Know the Selling Brand

In short, this one details that customers don’t know who the merchant is as they’re hidden behind the buyer. This is a genuine concern as there are laws about knowing who the customer is buying a product from. However, in dropshipping programs, the seller is the one responsible for all problems that the customer has.

This means that if the customer’s order is damaged, needs to be returned or something else, it is the seller and not the merchant who is responsible. Now some merchants will give guarantees, however, these will still have to be managed by the seller, not the merchant.

2. Taxes for Products from Merchant’s Country

Some people are concerned about the import or other taxes that might need to be paid when products are shipped from far away. This can be true in some circumstances and you can be worried about this, but these taxes can be included within the price of the product or as an additional cost within the checkout operation.

3. Products Don’t Meet Safety Laws

Many companies around the world will use the same set of standard safety checks to ensure that products comply with local regulations. If you’re worried about a product that can be sold on your website, there are two options. The first is that you don’t sell it. The other is that you buy one and send it for testing to get it regulated. This can be expensive, but if you’re the only one selling a good product, then the potential revenue can be worth it.

4. Returns/Replacements

The returns and replacement rules for all dropshipping companies must meet the expectations of the customer’s state/country. This is no different from other businesses. If you’re unsure of your legal obligations in an area, consult a lawyer or restrict access to that area from your website.

Keep Reading

Final Word: Is Dropshipping Legal?

Is dropshipping legal? Yes, but there are still laws and regulations that you’ve got to follow to ensure that you’ve got the best business you can have. While there are concerns, listed above, these are often the result of a poor understanding of what dropshipping is and the responsibilities of all three parties.

*Make sure to check out our Shopify dropshipping apps roundup

Keep on reading about Dropshipping on Shopify. For example Is Dropshipping Worth it? and How to Make Money Dropshipping. Both part of our Shopify Dropshipping Apps and Shopify Dropshipping Themes lists. You can read more about Dropshipping on Shopify with our ultimate Dropshipping on Shopify guide.

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