For those entrepreneurs who wish to start their own enterprise, dropshipping could be a great way to be your own boss, ditch the 9 to 5 and be in control of your income.
According to those in the know, the U.S. online retail sales of physical goods during 2019 reached an incredible 343.15 billion US dollars and is projected to reach upwards of 476.5 billion US dollars in 2024. So with eCommerce stores and dropshipping ventures set to rapidly increase over the next few years, many business owners might be asking the question, is dropshipping legal? So let’s hit the ground running with the definitive answer before we head into more details. Is dropshipping legal? Dropshipping is legal in the US and many other countries. Always check if you intend to set up your store in a different country. Be sure not to sell any replicas, counterfeit, copyrighted, or banned goods such as medicines or drugs. Follow standard business set up procedures and register for tax. So that’s the short takeaway nailed, so we can better understand whether dropshipping is legal, let’s start by exploring a little more about the dropshipping model.
What exactly is the dropshipping model?
Dropshipping is a type of eCommerce method where an online store doesn’t actively keep the products it sells physically in stock, such as in a warehouse. Instead, when a store sells a product using the dropshipping model, it purchases the item from a wholesaler or other business and then has it shipped directly to the customer.
Using the dropshipping method, the seller doesn’t handle the product directly. One of the main differences between dropshipping and the more usual way of conducting a retail business model is that the seller doesn’t own any stock or inventory. One of the main benefits of the dropshipping model is, according to Shopify is,
“Not having to worry about fulfillment is incredibly convenient and frees up your time to concentrate on your marketing plan, customer service, and operations.”
