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Is Dropshipping Legal?

Amber • What is Dropshipping?

May 13,2020 15 min read


Dropshipping is growing its popularity from time to time. Many people are interested in starting a dropshipping business because it offers huge opportunities for everyone in this business. However, some people still have doubts about dropshipping.

"Is dropshipping legal?" This article will look into the legitimacy of dropshipping. If you are wondering if dropshipping is legal or not, you can start reading this page now and know more about dropshipping legal requirements. There are also some explanations that you can read about a dropshipping business model.




5 Reasons Why Dropshipping is Legal

You may ask when considering starting a dropshipping business, "Is dropshipping legal?" Undoubtedly, the answer is positive - "Yes." Having completed so many purchases from online stores, you may still not be able to realize that some retailers are doing a dropshipping business. If you want to know is dropshipping legit or not, you can take a look at some of these reasons below.


a. Dropshipping works pretty similarly to the other brick-and-mortar stores

There are no such things as dropshipping legal requirements. Dropshipping is just a way to sell any products. This business model works similarly to the other regular brick and mortar stores. For example, if you visit a Walmart store for buying your favorite baseball bat, you will understand that Walmart did not make the bat. This store works with thousands of retailers from around the world.


The only difference between you and the other offline stores is the fact that you don't need to have any items in stock. You only buy the items from your suppliers when your customers buy any products from your store.


b. The sellers have their own rules

Before you start your dropshipping business, you need to contact some suppliers that you can work with. Dropshipping suppliers have rules and regulations that you are required to follow. This fact shows that the dropshipping scam is not true. As drop shippers, we cannot do anything that we want without following the rules from the sellers.


For example, some suppliers are going to enforce something that is called the MAP policy. This type of policy will prohibit any dropshippers from selling products below the minimum price range. All of these rules can create boundaries for all dropshippers, to build trust from all dropshippers and customers.


c. Most dropshipping sites have a real address, telephone number, and business hours

When you look on the Internet, you can find a lot of dropshipping companies that work very similarly to the other regular companies. They have a real address and telephone number. You can contact them at any time you want, so you can ensure that they are legit. One example of a dropshipping store is Outdoor King.


This dropshipping store has its store that is located in the New York area. You can call this store at any time you want to buy any products from this store. Many dropshipping stores also have business hours, just like any other business. Dropshipping stores have a lot of similarities with other regular companies that are available around you now.


d. Dropshipping stores are affiliated with trusted brands

This is another important thing about which most people are concerned. This business is legit because many stores are affiliated with popular product brands on the market. Take as an example. Thousands of sellers have chosen GoTen, partly because GoTen dropshipping platform provides them brand authorization of products in all categories to avoid trademark infringement. GoTen members can be worry-free as they only need to focus on sales.

Lighting Direct is another example, it might be the best place for you to find any lighting products. This store works with some other popular brands, such as Ginger, Global Views, Moonrays, Nora Lighting, Ove Decors, PLC Lighting, ATG Electronics, etc. These popular brands trust Lighting Direct for selling their products.


Many popular brands usually allow any other stores for selling their products after they trust the stores. Both parties should also sign an agreement before they can work together in building a business. All of these facts can show that the dropshipping business is legal. You should never doubt about the legality of the dropshipping business.


e. Some big brands start as dropshippers

You may not realize that some big brands start their businesses as dropshippers. Some of them can even start their businesses from their garages. One example of these top brands is Wayfair. This company started selling products from the owner's living room. The owner of this site had about 200 dropshipping sites before he combined them into an online store called Wayfair.


At present, Wayfair is very popular among many people. Now, this company can deliver more than a billion dollars in sales every year. Wayfair has become a successful company from starting as a dropshipper at the beginning.



Is Dropshipping Legal on E-Commerce Platforms?

Is it legal to dropship from some popular online platforms? How is dropshipping legal? In this article, we are going to discuss dropshipping in some online platforms and websites, such as AliExpress, Amazon, and eBay. You need to know their rules and regulations before you can start dropshipping from those sites.


1. Is AliExpress Dropshipping Legal?

Aliexpress is a platform that is dedicated to all Chinese citizens who want to run any businesses from their locations. As a dropshipper, you will be able to find a lot of Chinese suppliers from this website. You only need to contact some relevant sellers from this platform, so they can arrange product delivery to your buyers' addresses. It is legal for you to drop ship from AliExpress because this platform is specially created to help a lot of dropshippers from around the world now.


2. Is Amazon Dropshipping Legal?

You need to follow the strict shipping policy from Amazon. According to the terms of use from Amazon, sellers are not allowed to buy items from other retailers and send the products directly to the customers. It means that you cannot become a dropshipper by becoming a seller on Amazon. However, you can still sell any items from Amazon to your customers. You can act as a buyer in Amazon, then you can sell any items to your customers via your social media platforms, eCommerce sites, and any other channels.


3. Is eBay Dropshipping Legal?

Is dropshipping on eBay legal? There is no explicit law or policy that can prohibit this business model from the eBay website. You only need to register on the platform, find some reliable suppliers, and sell any items via your eBay account. However, eBay charges you with its listing fees. Only the first 50 product listings are free for you. Besides, the eBay platform also takes up to 10 percent of your sale price as a commission fee. It can be challenging for you to be profitable when you become a dropshipper on eBay.


The Verdict

"Is drop shipping legal?" you're asked by someone, you may reassure the person now by giving a perfect explanation now.

Generally speaking, dropshipping is a legal business that you can start today. It allows you to save a lot of your time and money if you want to run a successful business. You can start your dropshipping business by creating your store and deciding which dropshipping supplier to work with today.


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