Is Dropshipping Legal? 5 Things You Need to Know About Dropshipping

Online e-commerce has become a worldwide trend not only in these days, but in recent years. Due to the epidemic of COVID-19 and with the development of online e-commerce, people seek ways to make big money without actually going aboard to purchase in real wholesale markets.

Dropshipping is one way to develop your business online with low investment and low risk, but high profit. It’s not a fresh term. People may hear of it years ago. But in recent years, it embraces its flourishing.

This article is going to answer the question: Is Dropshipping Legal? And furthermore, we are going to tell you what you need to notice when doing dropshipping.

Before a starter steps into dropshipping business, this question is frequently asked: is dropshipping legal? The answer is without doubt dropshipping is absolutely legal if you play by rules.

And how does dropshipping work? In simple, dropshipper got a online store on his own websites or on other platforms, like AliExpress, Amazon, eBay or others. Then they take orders and fulfill their orders based on such wholesale websites, without holding inventory.

The good thing about dropshipping is that you don’t have to invest too much, as you don’t have to hold stock in warehouse. And you just need to take orders, with all the rest steps left to platforms like AliExpress, for example shipping, packaging and others.

The bad thing is the rather competitive market. As more and more people are running dropshipping right now, how to surpass your competitors and take more share in the market is the most important thing to consider.

Therefore, in the rest of the article, we are going to share with you some tricks to make you out-stand your competitors. Now, let’s get into it.

5 Things To Know About Dropshipping

#1 Choose a trustful dropshipping platform to establish your online store

There are pretty much platforms on the Internet claiming that they are professional dropshipping platforms. Are they really what they said to be? The answer is doubted.

Normally, people would turn to big platforms, like AliExpress, eBay, Shopee. These are great dropshipping platforms without doubt. Yet the market place is really competitive on these platforms.

Another way to find reliable dropshipping platform is find it on Shopify. There are quite a number of dropshipping web App on Shopify. And the reason why we recommend it is that Shopify got strict rules for Apps launching on it. Most of its dropshipping platforms are rather trustworthy.

You can test some dropshipping platforms and then select the most trustful ones. Or you can run your dropshipping over several dropshipping platforms based on your needs.

#2 Choose dropshipping platforms through test orders

How to test if a dropshipping platform is trustful and worth working with? Simply place a test order on it. By placing a test order, you can see how it response to your order, whether timely or not. You can also check the shipping time through a test order and see if it’s shipped out from its oversea warehouses.

Warehouse is an essential factor to see if the dropshipping platform is powerful. With several global warehouses means less shipping time to your customer, which will attract more customers for you.

Another thing with dropshipping platforms is how they response to refund. It can show the ability of the platform to handle such problems and how is their custom services.

#3 Do a complete market and product research before you get into real business

Market and product research are rather important before you get into real business. You don’t want a short-term business, do you. Running a long-term business means you need to be keen to market trends and product trends.

A complete market and product research helps get away from the overnight booming success and establish a long-term steady business. There are several tools to do such researches, and you can refer to our article: 23 Useful Tools on How to Do Product Research.

#4 Careful for branded products

When doing dropshipping, branded products is one thing you need to pay special attention to. The reason is that branded products may cause you law issues if you don’t do it the right way.

Normally, most suppliers don’t hold authorization from the branded products. It would be simple if you have the authorization. If you don’t, you need to ask suppliers to give you such authorizations.

Custom has been really strict with infringing products. And you would get fined for such products, or even worse get involved in lawsuit for it. Therefore, don’t take the risk if you don’t want it.

#5 Market your store through advertisement

To make big money with dropshipping, you will need to take time marketing your store. And the most efficient way is to advertising store. A steady stream of traffic will get you more customers and orders.

By now, most dropshippers tend to use Facebook ads and Google ads. These are good ways to let people know about your store and get some traffic to your online store. You can also marketing your online store through other media platforms, which can be rather useful.

Final Words

Making big money through dropshipping can be difficult but easy if you got tricks. Here you can refer to more articles on our sites for help.

And we will do more research on dropshipping and write more articles about it. So keep tuned.

Hope you find this article helpful on your dropshipping business. Leave us a comment if you have any questions or suggetions. We are ready to get better. Thanks for supporting.

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