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Dropshipping? Great, but don't get ripped off

With dropshipping, you build a webshop while a supplier delivers directly to your customer. This is attractive because you do not have to purchase inventory — but legally, you are simply the seller. The full consumer law, such as the...

Published on September 17, 2020 by MKBjuristen.nl
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With dropshipping, you build a webshop while a supplier delivers directly to your customer. This is attractive because you do not have to purchase inventory — but legally, you are simply the seller. Therefore, full consumer law, such as the right of withdrawal and conformity, rests with you.

What is dropshipping?

With dropshipping, you sell products through your webshop but do not hold any inventory yourself. When a customer places an order, you place the order with your supplier, who delivers directly to the customer. Therefore, you do not need to invest in inventory upfront.

You are the seller, with all obligations

Legally, the customer enters into the purchase agreement with you, not with the supplier. Consequently, all the seller's obligations rest upon you: the duty to provide information, the right of withdrawal (the cooling-off period), the delivery period, and conformity. A defect or a return is your responsibility, even if you have never held the product in your hands.

Beware of 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 play a role. Therefore, evaluate your supplier critically.

This is a good start

Ensure you have good general terms and conditions tailored to dropshipping, a proper webshop with the right of withdrawal and privacy in order, and clear agreements with your supplier regarding delivery times, returns, and liability. Do not be tempted by courses that conceal consumer law.

Frequently Asked Questions

Am I liable for the product with dropshipping?

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

Does the right of withdrawal also apply to dropshipping?

Yes, as a consumer, your customer in principle 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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