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With dropshipping, you sell products that you do not keep in stock yourself: the supplier ships directly to your customer. It is a legal and efficient model, but as the seller, you remain ultimately responsible — for the duty to disclose, returns, warranties, trademark rights, and privacy. Below you will find the most important do's and don'ts for dropshipping legally and safely.
What is dropshipping?
Dropshipping is a business model where you, as a retailer, sell products that you do not keep in stock. You purchase the product from a third party (often a wholesaler or manufacturer) and have it shipped directly to the customer. This way, you do not need to maintain inventory . Through integrations, you connect the supplier's inventory data to your webshop and automatically pass on orders.
Do: comply with the duty to provide information
List the mandatory information on your website. You do not need to state that you are a dropshipper, but you must include details such as delivery time, return policy, and the statutory right of withdrawal. This transparency builds trust and prevents sanctions.
Don't: bad agreements with suppliers
A common mistake is failing to properly coordinate agreements with suppliers. Make clear agreements regarding delivery times, product quality, and what happens if something goes wrong. You are responsible to the end customer: if something goes wrong between you and the supplier, you are left with a dissatisfied customer.
Do: Think about returns and warranties
As the selling party, you are responsible for returns and defects. Establish a clear policy and bear in mind that you must be able to receive returned products—so you may need your own storage space. Also, make agreements regarding what happens to returned products; sometimes the supplier takes them back.
Don't: act like it's an exclusive product
Do not pretend that your product is unique and unavailable anywhere else. If customers discover that it is for sale elsewhere as well, it damages your reputation. You do not have to mention that you are a dropshipper or that the product is cheaper elsewhere, but do not lie about it.
Do: check for trademark infringement
Check whether your products infringe on trademark rights or other intellectual property rights. Caution is especially advised when importing: there is a lot of counterfeit goods in circulation. Even if the supplier ships directly, you remain responsible. Selling counterfeit goods can lead to serious legal problems and reputational damage.
Don't: just pass on personal data
You have access to sensitive customer data (name, email, address, telephone number). You may not simply pass this on to the supplier. You need a sound privacy policy that complies with the GDPR, must inform the customer about which data you process and pass on, and must agree with the supplier that they will not misuse that data (for example, via a data processing agreement).
Frequently Asked Questions
Is dropshipping legal?
Yes, provided you comply with the rules: duty to inform, returns and warranties, trademark law, and privacy. As the seller, you remain ultimately responsible to the customer.
Do I need to mention that I am a dropshipper?
That is not mandatory, but you must not mislead customers. However, you must provide the mandatory information (delivery time, return policy, right of withdrawal).
Who is responsible for returns and defects?
You, as the selling party, ensure a clear return and warranty policy and good agreements with your supplier regarding returns.
Am I allowed to share customer data with my supplier?
Only to the extent necessary and with the appropriate agreements (such as a data processing agreement) and a GDPR-compliant privacy policy. Abuse is not permitted.
Start dropshipping safely?
We help you with sound supplier agreements, a return and warranty policy, a GDPR-compliant privacy policy, and advice on trademark law, so that you can dropship without legal worries.
View our expertise in commercial law or schedule a no-obligation intake consultation.
