Are you thinking about starting a dropshipping business but still skeptical about its legitimacy? Dropshipping is always misunderstood by many as a scam, but the truth is, it is not.
What is dropshipping?
Dropshipping is an online retailing business wherein the seller does not need to have an actual store or do inventory. Dropshipping involves 4 things:
- The e-market website that allows dropshipping method.
- The seller.
- The customer.
- The supplier.
In dropshipping, you need to sign up to an e-market website that allows dropshipping method. And then, create listings on products that you want to sell. However, beginners should sell at least 2-3 types of products to guarantee focus when promoting the product.
Next, get a reliable supplier that supports the dropshipping method. If you have customers, you have to provide the details of the purchase, including applicable tax and fees.
Lastly, to ship out the product to the consumer, it is the job of the third party to do the packaging and the shipment of the product directly to the customer.
In other words, in dropshipping, sellers do not need to need to exert too much effort when it comes to product packaging and shipping.
Isn’t it too good to be true?
It is, but dropshipping is legal. And here are the top reasons why it is legal:
Reason #1: Dropshipping have policies
Like in many e-commerce transactions, in dropshipping, each business owner and customer has to follow strict e-market policies to protect the rights of both parties.
In dropshipping, the sellers should not miss the policies on;
- Selling products with and without trademarks.
- Guarantees and returns.
- Proper information dissemination about additional tax and fees.
- Prospective supplier’s policies about product warranties and damaged and missing shipments.
Breach of policies in dropshipping could result in cancellation of dropshipping listings and or e-store.
Reason #2: Dropshippers are found in trusted e-commerce sites
There are legit dropshipping websites that you can start your dropshipping business. But did you know that other e-commerce websites such as eBay, Shopify, and more allow dropshipping on their websites? However, dropshippers should follow the strict policies on dropshipping, placed by these e-market sites.
Reason #3: They guarantee refunds
Did you know that dropshipping also offer refunds? As per dropshipping general policies, dropshippers should guarantee refunds to their consumers. This is not only to gain customer loyalty and increase customer turnout but also to guarantee the rights of consumers. Plus, dropshipping practice good customer-seller relationship, which is one of the reasons why most of dropshippers guarantee refund.
However, consumers should also understand that there are return policies that protect the rights of the sellers.
Dropshipping is legal.
It may not have an actual store where the sellers do inventories and hire workforce, dropshipping works as a real business company. In dropshipping, the dropshippers need to understand the dropshipping policies before starting a dropshipping business. Also, dropshippers have to look for reliable suppliers that support dropshipping business. Lastly, dropshippers have to pay extra attention to promoting their business.