Legal Affairs

Dropshipping: no inventory, but all the legal concerns

Dropshipping saves you inventory and logistics, but not the legal responsibility. You are simply the seller to the customer: consumer law, the right of withdrawal, and conformity rest with you, even if someone else delivers the product...

Published on January 20, 2022 by MKBjuristen.nl
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Dropshipping saves you inventory and logistics, but not the legal responsibility. You are simply the seller to the customer: consumer law, the right of withdrawal, and conformity rest with you, even if someone else delivers the product directly.

How does dropshipping work?

With dropshipping, your webshop is the shop window: you do not hold any inventory, and upon an order, the supplier delivers directly to the end customer. You focus on marketing and sales, while logistics are handled by someone else. Attractive, but the legal concerns remain with you.

You are and remain the seller

The customer enters into the purchase agreement with you, not with the supplier. Consequently, you bear all seller obligations: the duty to provide information, the right of withdrawal (the cooling-off period), the delivery period, and conformity. A defect, a delay, or a return is your responsibility, even if you have never seen the product.

Risks with suppliers outside the EU

Many dropshipping suppliers are located outside the EU. Long delivery times, defective products, and difficult returns then become your responsibility towards the customer. Import duties, VAT, and product safety can also be issues. Therefore, evaluate your supplier critically and make firm agreements.

This is how you cover yourself

Ensure you have terms and conditions tailored to dropshipping, a proper webshop with a right of withdrawal and privacy in order, and clear agreements with your supplier regarding delivery times, returns, and liability. This way, you reduce the risk of facing financial difficulties.

Frequently Asked Questions

Am I liable for the products when dropshipping?

Yes, you are the seller to the customer and responsible for conformity, delivery, and returns.

Does the right of withdrawal also apply to dropshipping?

Yes, as a consumer, your customer generally has a fourteen-day cooling-off period. You arrange this with the customer, regardless of your supplier.

What if my supplier is located outside the EU?

In that case, long delivery times, returns, and defects will be at your expense towards the customer. Make clear agreements and evaluate the supplier critically.

Is your dropshipping webshop legally in order?

Our legal experts draft general terms and conditions for dropshipping and perform a legal scan of your webshop. Schedule a free consultation.

Please note: an article provides general information, but your legal situation may turn out differently.

A contract, conflict, or legal risk must always be assessed based on the facts, documents, evidentiary position, and interests. Are you in doubt? Have your situation assessed before you act.

Legal question regarding this article?

A blog provides explanation, but your situation often requires a concrete legal choice. MKB Juristen helps entrepreneurs with contracts, terms and conditions, GDPR documents, employment documents, disputes, and customized legal solutions.

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SME Lawyers at the Chamber of Commerce Source: Chamber of Commerce 2019
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