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Dropshipping

When you dropship products through Shopify, you need to comply with the laws and regulations that apply to the sale of products as if you’re a retailer of those products. These laws and regulations depend on the region where your store is located and the regions where you sell. Use the information on this page to learn about policies, laws, and regulations that might apply to your business.

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What is Dropshipping?

Dropshipping is a fulfillment method where you don’t keep the products that you sell in stock. Instead, you purchase the item from a third-party supplier and have it shipped directly to the customer. As a result, you don't handle the product directly during individual transactions. Learn more about dropshipping.

Product safety

If you’re dropshipping products, then it's your responsibility to make sure that you’re offering products for sale that are safe. Before dropshipping a product, complete the following safety checks:

  • Review any product safety laws and regulations.
  • Make sure that your products have the proper licenses, certifications, markings, safety warnings, or other documentation, such as instructions, in any jurisdiction where you want to sell those products.
  • Make sure that any safety warnings and instructions are written in the official language of the jurisdiction where the product is sold.

Although you might have the appropriate licensing or certifications in one jurisdiction, these licenses or certifications might not carry over to other jurisdictions. Because product safety laws vary by jurisdiction, you should consult with a lawyer before selling products in a new market.

If you’re a merchant selling products in the United States, then you should review the Consumer Product Safety Commission’s Small Business Resources and the Regulatory Robot to help you identify important safety requirements that might apply to your products.

If you're located in the European Economic Area (EEA), or if you're targeting customers in the EEA, then European laws apply to you. You should review the following resources to help you identify important safety requirements that might apply to your products:

If you're located outside of the EEA, but you target customers in the EEA, then these laws might apply to you. For example, if you advertise using local media in a European country, use a local EEA language other than English, or if you create a website with a EEA based domain name, then these laws might apply to you.

Learn more about the European Economic Area (EEA) and relations with the European Union.

Product liability

Although you might not handle a product directly when using the dropshipping fulfillment method, you could be held liable for products that don’t meet the safety standards in any jurisdiction you're selling where those products are shipped.

Before using the dropshipping fulfillment method, ensure that you choose a reputable supplier. You can do the following to help you choose a reputable supplier:

  • read reviews of a potential supplier
  • read the supplier's policies
  • talk with the supplier about their business
  • purchase products from the supplier so that you can assess their quality

Before you sell a product using the dropshipping fulfillment method, review the product safety and compliance laws and check for product recalls in any jurisdiction where you want to sell those products. Learn more about choosing suppliers and choosing products to sell when using the dropshipping fulfillment method.

Product recalls

A product recall is when defective or unsafe products are retrieved from customers. Recalls often occur because of safety concerns over a manufacturing defect. A product recall may happen when a company reports their product to the government or after the government receives a report from customers or other sources.

You're responsible for adhering to legal requirements about recalls in any jurisdiction where you conduct business.

If you’ve been selling a product that’s later subject to a recall, then you’re responsible for removing that product from your online store. If it’s required by law, then you might also need to notify customers who purchased that product and advise them of next steps.

If you become aware that a product you’re selling has a possible health related or safety related issue, then you should consult with a lawyer about whether you have a legal obligation to report that information to the government. If you do, then the government will evaluate your report and determine if a recall is appropriate.

If you think that you might need to conduct a product recall in the future, then you should consider whether to have a recall plan in place. A well thought out and well executed recall plan can prevent injuries to your customers and minimize the negative impact on your business.

Shipping and processing timeframes

Under Shopify’s Terms of Service, you must add publicly accessible processing and shipping information to your online store. You must communicate order details such as shipping times, and additional fees, including import or customs charges, before the customer completes a purchase. After the customer places their order, you should let them know if there’s a delay or change to their order.

If you use the dropshipping fulfillment method, then it’s good practice to tell your customers that products will be shipped by a third-party and the shipping origin. Before you choose a dropshipping supplier, it’s good practice to order products from the supplier so that you can determine how long it takes them to process and ship an order, and how long it takes for products to arrive.

Order fulfillment and delivery requirements in the European Economic Area

The European Economic Area (EEA) has laws related to order fulfillment, shipping information, and the disclosure of import or custom charges:

Review the following resources to learn more about laws related to order fulfillment in the EEA:

If you're located outside of the EEA, but you target customers in the EEA, then these laws might apply to you. For example, if you advertise using local media in a European country, use a local EEA language other than English, or if you create a website with a EEA based domain name, then these laws might apply to you.

Processing refunds

Under Shopify’s Terms of Service, you must add a publicly accessible refund policy that's current and accurate for your online store. It’s good practice to include the following information:

  • the timeframe in which a product must be returned
  • the address where a return needs to be sent
  • the cost of returning a product, and who pays for the return
  • that the time it takes to get a refund might depend on where the customer lives in relation to your location
  • contact information that a customer can use to contact you in case they don't receive a refund in a timely manner.

If you're located in the European Economic Area (EEA), or if you're targeting customers in the EEA, then European laws might apply to you. In your refund policy, you must also provide customers in the EEA with information about their basic rights, including the right to withdrawal and conformity of goods. For example, customers in the EEA usually have 14 days after the delivery of an online product to return the product for a full refund.

Review the following resources to learn more about EEA customer rights:

You should review the laws of your jurisdiction and your customers' jurisdiction for legal requirements regarding refunds. If you fail to provide a current and accurate refund policy, then Shopify might take action against your account, up to and including termination.

If you're located outside of the European Economic Area (EEA), but you target customers in the EEA, then these laws might apply to you. For example, if you advertise using local media in an EEA country, use a local EEA language other than English, or if you create a website with a EEA based domain name, then these laws might apply to you.

Cost-inclusive pricing

If you're using the dropshipping fulfillment method to import products from abroad into another country, then it's important to accurately state that the products are imported and might be subject to customs clearance.

If you're located in the European Economic Area (EEA), or if you're targeting customers in the EEA, then European laws might apply to you. You must also provide EEA customers with information about the total price of goods and services, including taxes, delivery costs, and shipping costs, if applicable.

Review the following resources to familiarize yourself with EEA customers rights:

If you're located outside of the European Economic Area (EEA), but you target customers in the EEA, then these laws might apply to you. For example, if you advertise using local media in an EEA country, use a local EEA language other than English, or if you create a website with a EEA based domain name, then these laws might apply to you.

Resources

Review the following resources to find specific information about product safety online:

Review the following resources to find specific information about product recalls online:

Review the following resources to find specific information about refunds online:

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