Dropshipping is a business that connects people from different parts of the world. Many people want to get into this type of business. However, many of them are unaware of its legal aspects. Because of this, their idea of an additional income drifts away. So, let’s find out together: Is dropshipping legal?
First off, what is dropshipping? It is a business model that does not require the seller to manage inventory, hire employees, or even ship the products to the customer. You sell the products through an online store without buying them in advance and their original supplier ships them to your customers at your direction.
Why is dropshipping so popular?
It is important to bear in mind the benefits of dropshipping:
● Low risk
● Easy to start
● A broad selection of products
● No physical inventory
More and more people try to find an additional source of income. Looking for the options, they consider trying dropshipping as it is a fairly popular online business model. Which bears the question: is dropshipping legal and what are the risks?
The answer is: yes, it is legal.
It is merely a business model where the seller promotes, manages and maintains an online store.
The rest is the responsibility of the dropshipping supplier who handles the packaging, distribution and shipping process. Dropshipping suppliers are abundant on the internet and there is one for almost every imaginable product. There are even apps that can help you find a dropshipping supplier.
However, certain aspects need to be brought to your attention.
What is most commonly viewed as dropshipping risks?
Besides the legal aspect of dropshipping, as was mentioned before, newcomers might stumble upon various challenges like selecting reliable suppliers, picking high quality products, and dealing with a long shipping time. Keeping this in mind, online retail platforms offer some solutions for drop shipping vendors. Among all the platforms available we heavily recommend you to search for dropshipping suppliers on AliExpress.
Let’s look at the reasons why this online retail platform is the best choice for dropshippers.
● The products
There is a wide variety of products available. You can find almost any type of product that you’d want to sell. This is now more true than ever, with everything from wholesale vegan elderberry gummies being created to pre-workout capsules. There is something out there for everyone – you just need to find the right manufacturers. Besides that, there is a big variety of suppliers for you to choose from that sell the same products. If you don’t like the service that one supplier is providing, you can always find another.
Products on AliExpress have ratings and reviews. This allows you to pick the products that are more or less of high quality based on the reviews and ratings left by other customers.
● The suppliers
Entrepreneurs that are new to dropshipping are often concerned about encountering fake suppliers who may try to scam them or sell counterfeit products. Worry not, AliExpress is free of these troubles and everything is done legally.
The key to a successful dropshipping business is a reliable supplier. Luckily for you there is an abundance of suppliers on AliExpress. The question is: how do you choose a supplier? The process is similar to choosing products.
All you need to do is find a reliable supplier, is to check the rating of the seller and the number of products ordered from the store. For the seller to be considered reliable it is commonly recommended to look for stores that have a rating of 4 and above, and have at least 500 ordered products.
● The shipping process
The shipping process is one of the components why AliExpress stands out amongst its competitors. The reason for this is that most suppliers offer free shipping and relatively quick delivery times. This platform also provides a service known as ePacket. The price of this service usually ranges from $3-5$ and it takes approximately 16 to 18 days for the customer to receive their product.
In addition to the advantages that Aliexpress provides, it encourages drop shippers. After you’ve contacted a supplier simply specify that you are a dropshipper. This will significantly simplify the process of doing business with dropship suppliers.
In this type of business, customers can come from any part of the world. Some countries even encourage ecommerce business with different ecommerce shipping solutions. Make sure to research countries that will be involved in the business process. Even though dropshipping is considered to be a legal business, it is important to know about local laws regulating import and taxation..
So, is dropshipping legal for ecommerce entrepreneurs looking for a gainful business idea? Of course it is! And is it safe and riskless enough to encourage you to give it a try? We hope so!
