It is always a big concern of newbies to identify whether the business they are planning to start is legal or not and if you are dropshipping then definitely wandering to get an answer for Is DropShipping Legal or not?
I tried to find out answers from various forums and websites and even drop shipping websites too and listed my best of knowledge with the question on Is DropShipping Legal or not?
I am a drop shipper and while I started it was in my mind that what if this is illegal.
So everywhere, I found an only common answer for Is Dropshipping Legal?
Is Yes, DropShipping is a legal business.
There are certain points which might clear doubts on your most critical question Is DropShipping Legal and we will identify the potential risks parallel.
Check out this guide till the end and you will get an answer for the most sought question.
Let me brief first about Dropshipping.
How Dropshipping works?
DropShipping is a business where you can sell products without holding inventory.
You will connect with the seller or manufacture and sell his products on your own store by finding a suitable buyer and create a margin in actual buying and selling price.
In short, this is a money making process by creating a margin on actual selling of the products by finding the low-cost seller and high-cost potential buyer through your own online store.
If your seller or manufacture is registered seller then you are just helping them to rich his products to an audience and it is nowhere seems to be illegal.
I can assume that I have a clear bit of your mind on Is Dropshipping legal?
Now Coming back to the real point and will discuss How this is legal.
Is DropShipping Legal?
There are three most popular platforms to start such as AliExpress Dropshipping, eBay DropShipping, Amazon Dropshipping, so will check each of them.
How they are offering DropShipping and how can you start a legal business with all the three platforms.
Is AliExpress DropShipping Legal?
The simple answer is yes.
why because Dropshipping is all about fulfilling an order and here nothing illegal to provide customer or buyers best choice to buy from somewhere.
Yes but in that case, your actual manufacturer or seller must be a registered seller
So before planning to import products from a seller. Make sure that seller is legit otherwise you will be in risk or trouble while running an online store.
AliExpress is a subsidiary of Alibaba Group, where almost all the small or big wholesalers are registered with their own company and products.
They all are Chinese sellers, so in case if anyone wants to buy their products out of China and you are providing that service by building your own website is nowhere illegal.
Whatever charges included such as International trading, shipping and all other you are already paying for that.
Do not worry, you can start your own store by dropshipping from AliExpress.
If you are based in China then you can DropShip on AliExpress means you can register your own manufactured products with AliExpress and can make direct sell from there.
What if you are Outsider from China?
In that case, you can do DropShipping from AliExpress.
AliExpress will offer you to directly ship your products to customer ends and this business model is widely used by millions of drop shippers.
Here is nothing illegal to sell another product on your own store if the seller is allowing you but few risks involved to start AliExpress DropShipping.
Pros of AliExpress DropShipping
- Low-cost problem-solving products easy to available.
- Using epacket shipping service, you can minimize overall Shipping Cost.
- Every Wholeseller registered with AliExpress support DropShipping
- You can start an online store and Automate them using Shopify and Oberlo easily.
- Delivery of products Available for worldwide.
- No need to have your own Inventory.
- Chances of making a low margin for the right product sell.
Cons of AliExpress DropShipping
- Shipping time will be at least 2-3 weeks.
- Finding the right seller is way difficult.
- It will not be easier to handle customer queries.
- You will timely face more numbers of the customer’s refund request.
From the above Pros and Cons, it is clear that there is no any legal challenges which can prove that Is DropShipping is legal?
Is Amazon DropShipping Legal?
Amazon is one of the most famous online e-commerce store having billions of traffic per day worldwide.
Every product manufacturer is willing to have his own products on Amazon and of course drop shipper too.
So here many people stuck with the query on Is Dropshipping legal with Amazon?
I must say you can’t even run classic Dropshipping with Amazon.
Amazon is not made for doing DropShipping for AliExpress Products, it is made for doing Dropshipping of your own Products.
Yes, Amazon is to register your actual Wholesale store which has inventory and products to sell.
While you made any sell Amazon will charge you around 15% for each sell I am not sure but you can check this on Amazon Merchant Seller.
Amazon does not offer you any service through which you can ask the actual seller to drop the package on the customer end.
So this does not support the classical DropShipping model. But here are two ways.
Here is Amazon FBA(Fulfillment by Amazon), which helps you to sell your products but for that, you would have to create an inventory of your own.
Do register your own company and add products to Amazon FBA inventory and now time is to send products to Amazon Fulfillment center.
So you must have an inventory or products for that.
If you are confident enough about any products which can make you a large number of sell then do buy from AliExpress in a large order and send them to Amazon Fulfillment center.
Rest Amazon FBA will take care as a normal FBA program. Check policy and Guidelines of Amazon FBA before planning this.
Sell on Your Risk
Connect with the local small seller and make deal with him and register your company with the Amazon Seller program.
If any sells come from Amazon then it will be your responsibility to deliver that product on time and make sure you are with the regulations and compliance of Amazon seller.
You have to maintain receipts, bills, shipping, tracking everything as common Amazon seller does.
If you violate Amazon seller regulations and compliance then you will be banned to make more sells.
In short with Amazon you cannot start classical DropShipping unless you have your own inventory.
Is eBay Dropshipping Legal?
eBay is among the popular choice for DropShipper after AliExpress.
It also ships products worldwide and of course shipping duration can be a bit longer than usual.
If you do not want to build your own store and not concern about creating your own brand and just want to sell other products then eBay is the best option.
eBay won’t be limited for products sells it runs huge numbers of auctions to sell physical products.
Simply log in to eBay and create your own accounts and start listing your own products.
There are two ways to make sell with eBay.
Sell Others Products
In this case, you can connect with Wholesaler or drop ship offering wholesaler and list his product on your own eBay accounts.
Whenever if any sells come, you will ask wholesaler to ship that product to customer end.
In this case, make sure your supplier address on eBay for that product must be the actual supplier address from where the product will be shipped.
If there is any mismatch then there might be a possibility that your account will be ban.
Register other Products
It is another best way where you can search on eBay itself and pick other high selling products and make register on your store and try to create margin.
If you will be able to make sell then can create profit.
I must say eBay support a classical dropshipping business where you can sell products without holding inventory.
Pros eBay DropShipping
- You won’t require to have an online store.
- You can sell any products which is already listed with eBay
- It supports 100% classical dropshipping.
- Easy to start just single login required.
- You can create multiple accounts with eBay
- You can place auction for other product if you have any such physical piece
Cons eBay DropShipping
- DropShipping through eBay can minimize your profit margin.
- Only 50 products can register for free with eBay.
- You have to pay around 10% as a fee to eBay for each sells you made.
- You can not create your own brand or identity to sell.
- Every time you have to start afresh marketing strategy for each product because you do not have customer emails lists which you can create with your own store.
In summary, I must say you have to follow compliance and regulations of eBay seller policies until you do that there is no reason to ask Is DropShipping legal with eBay?
Which one is Best to DropShip?
From above all listed points, it is everywhere clear that DropShipping is a legal business and if you are planning to start DropShipping then I must say yes.
You should go for AliExpress Dropshipping one of the best ways to create your own brand and increase the profit margin.
Check our Ultimate guide, will help you to set up an online store in detail with AliExpress.
Here are a few bonus tips before closing, for the safe side.
Is DropShipping legal in the USA?
There are few potential blogs identified, which says yes you should have USA reseller permit to dropship in the USA. But I don’t think any drop shipper has any such permit or license.
Is DropShipping legal in the UK?
If you follow EU regulations to maintain legal trade then there is no such policy which bound you to not do drop shipping.
Yes, it is fair and legal business to do drop shipping in the UK.
Is DropShipping legal in the INDIA?
There are no such boundaries to start dropshipping in India it is a completely free and legal business.
Even AliExpress making millions of sales in INDIA.
Is DropShipping legal in Canada?
USA and Canada are the main places to make selles for drop shippers and in Canada does not have any such restrictions to make sells using DropShipping.
My Final thought on Is DropShipping Legal?
We have seen how dropshipping works and nowhere we have observed any issue with DropShipping business.
It is a process of helping the seller to reach out their product to potential buyers and if you help them to sell legal products then how this can be illegal?
To sell any products on the online store is a quite competitive job you will require to spend money on doing advertisement and need business level strategy using Social media such as Facebook, Instagram, YouTube etc.
To get more sells you can opt to set up your online Facebook page, here is a detailed guide for that.
This is the end of the ultimate guide on Is DropShipping Legal? and I hope you like this most if so do share with social friends.
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