Dropshipping rules you need to be aware of

Are you thinking about starting a dropshipping online store?

Dropshipping has become increasingly popular, and we at Vendino understand this, as it offers flexibility, increased customer service and strengthens your business. At the same time, dropshipping gives you the opportunity to start running an online store with no inventory or you can supplement your current inventory with products that don't pay to keep in stock, but provide a stronger customer experience. However, it's important to remember that there are certain (unwritten) rules that must be followed when dropshipping. These dropshipping rules will be discussed in more detail in this article, so you'll be well-equipped to run a dropshipping store!

We will cover the most common dropshipping rules, but since the setup is very individual, there may be situations that we have not covered in this article.

Customer's right of complaint and return

Dropshipping rule number 1! By law, your customer will be entitled to a 14-day return policy. In simple terms, this means that the customer has the right to request a return of the product and get their money back 14 days after receiving the order. In most cases, your dropshipping supplier will not accept returns if the item is intact and basically faultless.

For you as a dropshipper, this means that you will have tied up capital in the item in question, which can be financially difficult if, for example, you have sold an expensive item and haven't budgeted for the risk of returns. Therefore, you should always make sure you have funds set aside in case of returns. You should also consider which products you choose to dropship, as some items are more likely to be returned than others. A good example of products that are often returned is clothing and accessories.

In addition to the 14-day return policy, your customer will also have a 2-year warranty if the product is faulty or defective at the time of purchase. However, it's worth noting that as a retailer, you must rectify faults and defects in the first 6 months. If the customer complains about a product 6-24 months after purchase, the customer will have to prove that the defect was present at the time of purchase. This is because the customer must prove that the defect was not caused by misuse of the product. In many cases, your dropshipping supplier or the manufacturer of the product will offer you a warranty, but not necessarily for 2 years. You can read more about the rules for complaints in consumer purchases by click here

Be aware of customs

Have you chosen a supplier outside the EU (e.g. China)? Then you should be aware that the customer may be required to pay customs fees, import fees, VAT and possibly other taxes in connection with their purchase. You should therefore make this clear when the customer buys from you. Or you can choose a supplier within the EU and avoid the hassle.

Avoid out-of-stock items from your supplier

There's nothing worse than having to tell your customer that you can't fulfil their order. However, you'd be surprised how nicely most people take such a message. In fact, it's considered good customer service and if you're solution-orientated in your approach, it can potentially have a positive impact on your reputation. Of course, it shouldn't become a habit, but mistakes can happen.

There are a number of things you can do to avoid selling products that are out of stock with your supplier. One of them is to create an integration between your dropshipping supplier and your online store. In many cases, this will be a costly affair, as you'll need to hire a developer (if you can't access feeds, import CSV, XML, etc.) Another option is to choose a few products that never or almost never go out of stock. A third solution is to use Vendino's dropshipping platformwhere integration between your online store and the supplier has already been arranged. However, you will generally only have access to the suppliers that are already connected to Vendino. This means that if you have a supplier that is not a Vendino supplier, it will not be possible to integrate unless the supplier becomes a Vendino reseller.

Product liability when dropshipping

You should be aware that you may be liable if you sell a defective product that causes damage to your customer or an object. This could be a poor quality charger that causes a fire, electrocutes the customer or damages a phone that has been charging, for example.

Often you will find that products purchased within the EU will have a higher quality standard than products from China, as there is increased regulation within the EU. This helps to safeguard consumers when they shop in stores. Similarly, as an importer, you will have more liability if you sell goods from China than if your manufacturer, supplier or intermediary is located in Europe, as liability can be passed on to them in certain cases. It will also be easier to prosecute a manufacturer, supplier or intermediary located in Europe than in China. Learn more about product liability by click here.