Hello, future entrepreneurs! Ever heard of dropshipping? No worries if it's new to you! This business mode can make things much easier for you. 
If you want to find out more,  check out our blogs! We'll explain dropshipping step-by-step and share some handy tips to help your business grow.

<details open>
    <summary><strong>Table of contents</strong></summary>
    <ul>
        <li><a href="#chapter1">What Is Dropshipping?</a></li>
        <li><a href="#chapter2">How does dropshipping work?</a></li>
        <li><a href="#chapter3">Where to buy?</a></li>
        <li><a href="#chapter4">Is dropshipping agent worth it?</a></li>
        <li><a href="#chapter5">Where to sell?</a></li>
    </ul>
</details>

## 1.What Is Dropshipping? {#chapter1}
![What_Is_Dropshipping_and_How_Does_It_Work_2024_Version_02.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_2024_Version_02_15eed4293b.png)

Have you ever wondered how some stores sell things without having any stock themselves? **That's dropshipping!**

Here's how it works: Imagine you run an online store. A customer orders a cool hat from you. Instead of keeping hats yourself, you work with a supplier who has them. You send the order details (like size and color) to the supplier, and they ship the hat directly to your customer. You never have to touch the hat yourself! Basically, you connect the customer to the supplier and take a cut of the profit.

**Dropshipping might be a good fit if you are thinking of starting your own business.**

Here's why:

-**Low Startup Cost:** You don't need a lot of money upfront to get started with dropshipping, unlike businesses that require keeping inventory.

-**Easy to Manage:** You can run a dropshipping business on your own, without needing a big team in the first stage.

-**Flexible Schedule:** You can set your own hours and work whenever you have time.

**But please remember:** Dropshipping success isn't guaranteed. It takes effort to make real money. Keep learning and improving your skills to increase your chances of thriving!

## 2. How does dropshipping work? {#chapter2}
Imagine you have an online store, but you don't keep any products at home. Here's how dropshipping works:
 
**Step 1: Customer Orders**
Someone sees something cool on your online store and places an order.

**Step 2: Forward the Order**
You send the order details (like what they bought and where to send it) to your supplier.

**Step 3: Supplier Takes Over**
Your supplier then packages and ships the product directly to your customer.

Take a look at the diagram below to get a visual understanding of the dropship model simplified.

![What_Is_Dropshipping_and_How_Does_It_Work_02.PNG](https://strapi.crossborderstudio.com/uploads/1280_X1280_0dbc287197.PNG)


## 3.Where to buy? {#chapter3}
As a thriving e-commerce retail business model, dropshipping offers several advantages, including the following:

There are two key questions to answer before you jump into dropshipping. **where to get your stuff (to sell) and where to sell it to customers.**

Think of your supplier as your team partner. They'll store, pack, and ship the products you sell in your online store. Below list mentions 13 popular platforms where you can get your dropshipping products: 

### 3.1 Aliexpress {#chapter3.1}
 
 
![What_Is_Dropshipping_and_How_Does_It_Work_03.PNG](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_03_bd353fff01.PNG)
 
With an average of over 400 million monthly visits throughout recent years, AliExpress is undoubtedly one of the most well-known site that connects ecommerce platforms to dropshipping providers and products. There are more than 100 million products on AliExpress, in categories such as fashion, toys, consumer electronics, skin care products, jewelry, furniture, and even cars and motorcycles. The majority of goods are made in China. Dropshippers can use AliExpress to find trending products, do market research, build relationships with vendors, and order wholesale.
It’s a good place to start when testing out your niche and researching potential competitors. Still, it can be difficult to manage since you have to find suppliers that cater to dropshipping independently.

### 3.2 Alibaba {#chapter3.2}

![What_Is_Dropshipping_and_How_Does_It_Work_04.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_04_2a42b5a6ba.png)

Alibaba is the parent company of AliExpress and one of the largest eCommerce platform with more than 2.8 million suppliers and more than 5,900 categories. The difference between the two is that Alibaba functions as a B2B eCommerce marketplace, which is more suitable for wholesalers than single sellers, and facilitates transactions directly with manufacturers. 
Dropshipping might be a bit more tricky on Alibaba than AliExpress since it’s not made for single orders. Alibaba is ideal for finding direct manufacturers to produce an original design with consistent shipping times. 
It's recommended to advanced dropshippers who prefer private label manufacturing and want to buy bulk goods at the distribution level to sell as consumer items.

### 3.3 SaleHoo {#chapter3.3}

![What_Is_Dropshipping_and_How_Does_It_Work_05.jpg](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_05_2c8d1d5c2d.jpg)

If you’re comfortable paying an annual membership, SaleHoo might be worth a look. SaleHoo provides a directory of over 8,000 verified wholesalers, dropshippers, manufacturers, and liquidators. This gives you a large pool of potential suppliers to find dropshipping products. Also, product research tools are offered to help you find winning products. This can help you to figure out what niche you want to target.
SaleHoo’s inventory source is AliExpress. You can find pre-vetted dropshipping providers from a variety of trending and profitable niches, then import items directly to your Shopify store.  They also have resources like articles and courses to help you learn about dropshipping, e-commerce in general, and how to run a successful online business.

### 3.4 Doba {#chapter3.4}

![What_Is_Dropshipping_and_How_Does_It_Work_06.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_06_dbc481951d.png)

Doba is another platform similar to Salehoo for finding dropshipping suppliers and products for any category and niche. Instead of simply listing dropshipping vendors, Doba integrates with suppliers, allowing you to place orders with multiple warehouses using its centralized interface. Membership also includes a Push-to-Marketplace tool that automates the process of listing items on eBay. 
Pricing is one of Doba's distinctive features. It consistently offers discounts and sales on the wholesale price of seasonal items and bulk deals. Many of the products have low enough prices that you can compete with Amazon and pass on some savings to your customers. 
If you want more automation and features specifically designed for dropshipping, Doba might be a better choice. Their order fulfillment automation and wider range of platform integrations can save you time and effort.

### 3.5 Sunrise Wholesale {#chapter3.5}

![What_Is_Dropshipping_and_How_Does_It_Work_07.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_07_068345a113.png)

If you are merchants in the US and Canada looking for fast shipping times, Sunrise Wholesale may be a good choice.  It offers more than 10,000 dropshipping products and ships directly to customers in the US and Canada, with shipping times averaging at about one to two days. 
In addition, Sunrise offers sales reporting tools, product data, inventory updates delivered via email, and automatic price adjustments to ensure your profit remains consistent, even when suppliers change their prices.

### 3.6 Wholesale2b {#chapter3.6}

![What_Is_Dropshipping_and_How_Does_It_Work_08.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_08_bd8b87d4ff.png)

Wholesale2b offers real-time inventory automation, so orders and tracking updates are easily imported into your Shopify store. With more than a million dropship-ready products from multiple niches, it’s easy to create unique product collections.
With a single account, you can import up to 10,000 products. Wholesale2B offers dropshipping plans for eBay, Amazon, Shopify, BigCommerce, and multiple other platforms. It also has educational courses for dropshipping beginners and a curated list of top-selling dropshipping favorites. Overall, Wholesale2B can be a good option for those who are new to dropshipping or want a convenient way to manage their online store. 

### 3.7 Megagoods {#chapter3.7}

![What_Is_Dropshipping_and_How_Does_It_Work_09.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_09_6be9f6b01a.png)

Founded in 2004, Megagoods is a reliable dropshipping supplier specializing in consumer electronics. They have a vast selection of brand-name electronics and offer custom private labeling. Despite being a wholesaler, Megagoods offers dropshipping services without any minimum purchase requirements, meaning you can ship products directly to your customers without any risk of overstocking. It is a good choice if you focus on business of electronic equipment and want to ship internationally. 

### 3.8 Wholesale Central {#chapter3.8}

![What_Is_Dropshipping_and_How_Does_It_Work_10.jpg](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_10_f11bbfb0fc.jpg)

Wholesale Central prides itself as America’s leading B2B directory and is one of the oldest running companies on this list, connecting wholesale suppliers with online sellers. Unlike many other directories, there’s no charge to search Wholesale Central for vendor dropshipping options, because it charges suppliers a fee to be listed and displays ads on its site. There’s no registration required, and the website is easy to navigate. The platform boasts almost 100 US-based wholesale dropshipping suppliers that are fully screened and verified, with new options added frequently. It is recommended for dropshippers who need US-based vendors for quick delivery.

### 3.9 Modalyst {#chapter3.9}

![What_Is_Dropshipping_and_How_Does_It_Work_11.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_11_9365b79526.png)

Modalyst is an automated vendor dropshipping app, which makes dropshipping and print-on-demand easier for online sellers. It’s known for offering products from brand names like Calvin Klein, Dolce & Gabbana, and more well-known brands that shoppers love. Modalyst also offers a curated list of independent and trendy brands, print-on-demand items for every target audience.

The platform offers direct integrations to eCommerce platforms and marketplaces like Shopify, Wix, and BigCommerce, and a comprehensive digital inventory for all your product updates. With a focus on luxury and trendy brands, Modalyst is also a part of the AliExpress Booster Program, which gives dropshippers access to an endless catalog of products. 

### 3.10 Spocket {#chapter3.10}

![What_Is_Dropshipping_and_How_Does_It_Work_12.png](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_12_f3b5f3d544.png)

Spocket simplifies dropshipping by connecting you with reliable US and European suppliers. It allows you to quickly find and connect with suppliers who are closer to your customers from their vast marketplace, allowing you to take advantage of their 2–14 day shipping delivery. Their marketplace is known for offering high-quality goods at up to 60% off, leaving you with a higher markup on each item. With their one-click import button, You can have a fully automated dropshipping store with Shopify and WooCommerce. 
Spocket's user-friendly interface makes it ideal for new dropshippers. It's especially suited for those interested in fashion and beauty products, offering a wide variety to choose from. The best part is that you can get started with Shopify and Spocket for free! They both have a free trial period where you can try out the platform.

### 3.11 CJDropshipping {#chapter3.11}

![What_Is_Dropshipping_and_How_Does_It_Work_13.jpg](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_13_20c7428ea7.jpg)

CJDropshipping is another wholesale supplier directory with a huge list of products and automatic listing integrations. You can easily import products into your Shopify store, normally at a price lower than on AliExpress, sourced directly from 1688 and Taobao marketplaces. The 1668 and Taobao marketplaces are home to independent designers and small-business owners in China. There are hundreds of millions of listings you can access through CJDropshipping, and products range from mainstream items to hard-to-find items and even virtual products.
CJDropshipping uses US-based warehouses to execute same-day processing for your store. It works with USPS, UPS, DHL, and FedEx. If you are shipping from China, it has its own shipping line called CJPacket, which can deliver products to the US in about eight days.
CJDropshipping is recommended for retailers who want a one-stop place for all things dropshipping, including product sourcing, order processing, order fulfillment, and quick shipping to the United States.

### 3.12 Dropified {#chapter3.12}

![What_Is_Dropshipping_and_How_Does_It_Work_14.jpg](https://strapi.crossborderstudio.com/uploads/What_Is_Dropshipping_and_How_Does_It_Work_14_94c0dcdaca.jpg)

Dropified is a web-based tool designed to simplify and automate dropshipping, especially for Shopify stores. You can use the platform to automate your dropshipping process, from order fulfilment to delivery. The built-in Dropified Private Label On-Demand Plan is offered to help you launch your brand. 
You can use Dropified’s AliExtractor research tool to find profitable products. The platform enables multi-vendor product listings — multiple vendors with different variants, such as size, colour, and style, can be added to one product. Users can also bulk edit prices, tags, categories, and descriptions and add product videos.

### 3.13 Conclusion {#chapter3.13}

Dropshipping can be a profitable business, but finding the right partner is crucial. The type of goods you want to offer your customers, the quality of their suppliers, and how well they'll integrate with existing elements, such as your website, all play a role in determining the best dropshipping company for you.
Ultimately, the best choice depends on your specific needs. Analyze your priorities and choose the partner that best complements your vision.

## 4. Is dropshipping agent worth it? {#chapter4}

While working with platform is a good starting point, there are other options! You can also consider working with a dropshipping agent for these benefits:

### 4.1 Convenience {#chapter4.1}

Let's be honest, starting an online business can feel overwhelming. Dropshipping agents are like your awesome personal assistants, taking care of all the behind-the-scenes stuff: finding cool products, negotiating killer deals, keeping track of inventory, and getting those orders shipped out to your customers. This frees you up to do what you love – building your brand, marketing your store, and watching your business take off!

### 4.2 Expertise {#chapter4.2}

Dropshipping agents are like seasoned explorers who've already mapped the dropshipping landscape. They can connect you with the best suppliers who offer top-notch products, help you snag amazing deals, and keep you in the loop on all the latest industry trends. It's like having a secret weapon to navigate the dropshipping world with confidence, even if you're a complete beginner!

### 4.3 Reduced Risks {#chapter4.3}

Dropshipping agents will do product quality control and advance order fulfillment.  This can help you reduce some of the risks associated with dropshipping, such as receiving poor-quality products or dealing with unreliable suppliers. So less stress for you.

### 4.4 Trade-off {#chapter4.4}

**Of course, there's a trade-off:** Dropshipping agents typically charge fees for their services, which can eat into your profits. These fees can be a fixed monthly cost, a commission on each sale, or a combination of both. However, considering the potential increase in sales volume, it can be a worthwhile investment.
But please remember: it's important to choose a reputable agent that meets your specific needs.

Here are some additional things to consider:

- **The reputation of the dropshipping agent**: It's important to choose a reputable dropshipping agent with a good track record. Be sure to research the agent thoroughly before doing business with them.
- **The types of services offered by the agent:** Not all dropshipping agents offer the same services. Make sure the agent you choose offers the services that are important to you.
- **The cost of the agent's services:** Compare the fees charged by different dropshipping agents before making a decision.

Ultimately, the decision of whether to use a dropshipping agent is up to you.  Carefully weigh the pros and cons, and consider your specific business needs before making a choice.

## 5. Where to sell? {#chapter5}

Now, let's talk about where to sell your dropshipping products! This is your virtual storefront where customers will find your products. 

Here are some popular options:

### 5.1 Large Marketplaces (Ebay, Amazon, Etsy) {#chapter5.1}

Marketplaces like Ebay, Amazon, and Etsy are bustling with potential customers thanks to their massive built-in audience. This makes it easy to get your products seen quickly. However, the flip side is cutthroat competition. Price wars can be common, potentially squeezing your profit margins.

### 5.2 Independent Website {#chapter5.2}

Building your own website gives you complete control over branding and pricing.  This allows you to create a unique shopping experience that reflects your brand identity and lets you set competitive prices without the pressure of marketplace wars.  However, the downside is that attracting customers to your website requires more effort. You'll need to invest in marketing and SEO (Search Engine Optimization) to drive traffic and build brand awareness.

### 5.3 Saas Websiet Building Platform (Shopify, WooCommerce) {#chapter5.3}

Platforms like Shopify and WooCommerce offer user-friendly tools and templates to create a professional online store, even if you're not a tech whiz. Shopify is known for being particularly beginner-friendly, getting you up and running quickly.

### 5.4 Social Media {#chapter5.4}

Instagram and Facebook are great places to showcase your products with beautiful photos and videos. This is especially effective for products that are visually appealing, like clothing, homeware, or accessories.  If you have a strong brand identity, social media as a personal channel can help you build a community directly with potential customers.

**Remember:** Choosing the right supplier and sales channel depends on your target customers and the products you want to sell. Do some research to find the best fit for your dropshipping business!

No worries! We'll explore these topics in detail in future articles. To learn more, please follow us!

Click here to [start a dropshipping business](http://crossborderstudio.com) now with **Crossborder Studio**.

What Is Dropshipping and How Does It Work? (2024 Version)

While dropshipping is a popular choice, you may wonder if dropshipping is legal or not. The answer is yes, dropshipping itself is a legal business model in all countries. However, understanding the legal landscape is crucial to avoid problems. This applies to both beginners and experienced dropshippers. Let's dive into what you need to know!

<details open>
    <summary><strong>Table of contents</strong></summary>
    <ul>
        <li><a href="#chapter1">What is dropshipping?</a></li>
        <li><a href="#chapter2">Is dropshipping legal?</a></li>
    </ul>
</details>

## 1. What is Dropshipping? {#chapter1}

Dropshipping is a retail method where you, the seller, don't keep inventory yourself. A customer places an order on your online store. You relay the order details and customer information to your dropshipping supplier. The supplier packages and ships the product directly to your customer. Essentially, you act as a middleman connecting the customer to the supplier, and your profit comes from the difference between your selling price and the wholesale cost you pay the supplier.  
Dropshipping is a cost-effective way to help you avoid a lot of these expenses, such as storage space rent and inventory costs. You can just focus on marketing and customer service while the supplier handles fulfillment.

To learn more:
What is dropshipping and how does it work?

## 2. Is dropshipping legal? {#chapter2}

Yes, dropshipping itself is a legal business model in all countries. Like in any business, you must adhere to local, national, and international laws regarding the sale of merchandise. Meanwhile, you must avoid legal troubles typically involved with false advertising, infringing on copyrights, etc.   
So before starting your dropshipping business, it's crucial to gain a solid understanding of the legal landscape.  

### 2.1 Business Registration

You may wonder if dropshippers need a business license or not. A dropshipping business is a retail business. If your state or municipality requires a business license for retailers, you probably need one for your dropshipping store.   
There are several common business structures to consider for dropshipping.  
**Sole Proprietorship:**  Simplest and most common structure. You own and operate the business, with all profits and losses reported on your personal tax return.  The downside is that you have unlimited liability, meaning your personal assets are at risk if the business incurs debts.   
**Partnership:**  Two or more people share ownership and management of the business. Profits and losses are passed through to each partner's personal tax return. Similar to a sole proprietorship, partners have unlimited liability. 
Limited Liability Company (LLC):  Provides limited liability protection for owners (called members). This means your personal assets are generally shielded from business debts. LLCs offer more flexibility in management structure than corporations and can be taxed as a pass-through entity, similar to a partnership.    
**Corporation:**  Most complex structure, with a clear separation between the business and its owners (shareholders). Offers limited liability protection and the ability to raise capital by selling shares. However, corporations come with more regulations and paperwork.    
The best structure for your dropshipping business depends on your specific needs and goals. If you're running the business alone, a sole proprietorship might suffice. For multiple owners, a partnership or LLC is more appropriate. The advantage of setting up an LLC is that it separates your personal assets from your business assets. If something goes wrong and someone decides to sue your business, you can’t be held personally liable. Moreover, your personal assets can't be seized either.     
If you are not sure, you can also consult with a legal or tax advisor who can help you determine the best structure for your situation.

### 2.2 Tax

Like any business, dropshippers are liable for taxes. Let's take an example to show the potential taxes you need to pay to help understanding.  
Imagine you're a dropshipper based in the United States selling custom-printed mugs. You find a supplier in China who can create these mugs at a good price. But before you start selling, there are potential customs duties and import taxes to consider.   
**Scenario:**  
- You order 100 mugs from China, and the total cost (including materials and production) is $1 per mug, for a total cost of $100. 
- Shipping from China to the US costs $50.  
**Customs Duties:**   
As you source products from outside your country, you are responsible for customs duties and import taxes. The rates depend on the specific product and its country of origin.     
- The mugs are classified under a specific code in the Harmonized Tariff Schedule (HTS) of the United States, which determines the duty rate. Let's say the HTS code for custom mugs has a 5% duty rate.  
-  Duty = (Total Cost + Shipping) x Duty Rate = ($100 + $50) x 5% = $7.50  
**Import Taxes:**      
- In addition to duties, there might be import taxes like a federal merchandise processing fee or harbor maintenance fee (depending on how the mugs are shipped). These fees are usually a percentage of the total value of the goods. 
- Let's assume a combined import tax rate of 2%. 
- Import Tax = (Total Cost + Shipping + Customs Duty) x Import Tax Rate = ($100 + $50 + $7.5) x 2% = $3.15  
**Total Cost:**   
- So, before you even sell a single mug, you've potentially incurred $7.50 in customs duties and $3.15 in import taxes, bringing your total cost per mug to $1.1065.  
**Sales Tax (US):**      
In most areas, you'll need to collect sales tax from your customers on the products you sell. The specific rate will vary by location. You then act as an intermediary and remit this collected tax to the government.  
Let's say you sell the mugs at $19.90 in California . California has a statewide sales tax rate of 7.25%. When a customer in California buys a mug from your store, you collect 7.25% of the sale price as sales tax.   
$19.90 x 7.25%=$1.44275  
This money doesn't belong to you; you hold it temporarily and then send it to the California government.
**Income Tax:**   
You'll pay income tax on the net profit (your revenue minus business expenses) of your dropshipping business. Let's say if you sell all 100 mugs, and your net profit is Net profit = Revenue - total cost- sale tax- business expenses( such as employee, store charge etc., for example 15% of the revenue)
$1990-$110.65- $144.275-15% x $1990=$1447.225 

The tax rate you pay depends on your taxable income and falls within the federal income tax brackets ranging from 10% to 37%.   
Let's say if the rate is 15%, the income tax you need to pay is

$1447.225 x 15%=$217.08

Since you're likely considered self-employed as a dropshipper, you'll also owe self-employment tax on your federal return. This tax covers Social Security and Medicare contributions.
This is a simplified example. Tax laws can be complex, and it's always best to consult with a tax professional to ensure you're filing and paying the correct taxes for your dropshipping business.  It's important to factor these potential costs into your pricing strategy.

### 2.3 Copyright

Copyright is a type of intellectual property right that protects original works of authorship, such as written works, music, art, etc.  
As a dropshipper, you can't sell products that infringe on someone else's copyright. This includes things like:
  
- **Counterfeit items:** Fake designer clothing, electronics, etc. If a product's price is significantly lower than the typical market value, it might be a counterfeit.
- **Products with copyrighted designs or logos** (unless you have permission from the copyright holder)

![](https://strapi.crossborderstudio.com/uploads/11_b7bc781472.jpg)

- **Music or movies** (these require specific licensing agreements) 

### 2.4 Trademark

Trademarks protect words, symbols, or designs that identify the source of a particular product or service. You can't use a trademark on your products or marketing materials if it's too similar to an existing trademark, especially for related goods or services. This could confuse consumers and lead to legal action.    
Before selling a product, check if any trademarks are associated with it. You can use online trademark databases or consult with a lawyer.   
In one of the more shocking examples of international trademark infringement, is a South Korean fried chicken restaurant Louis Vuiton Dak vs Louis Vuitton. The court ruled in the designer’s favor after determining that the restaurant’s name of Louis Vuiton Dak was too similar to Louis Vuitton. Not only the name infringement, the restaurant’s logo and packaging closely mirrored the designer’s iconic imagery.   

![](https://strapi.crossborderstudio.com/uploads/22_e12549ec0d.jpg)

You can also **create your own brand identity**. Develop a unique brand name, logo, and product descriptions to avoid any potential trademark conflicts. You can use shopify logo maker tool- Hatchful to create a logo for free. They will generate versions for different uses, such as Facebook cover and profile, linkedin banner, twitter header, even transparent version of logo.   
If someone are unfortunately suspected of infringement, the trademark owner can demand them stop selling the infringing product. A lawsuit for damages needs to be faced by infringement. Online marketplaces like Amazon may suspend the seller's account.

### 2.5 Truth in Advertising

In dropshipping, truth in advertising is a must. Building trust with customers is essential for long-term success. It's crucial to avoid misleading customers or making false claims. When customers feel misled by advertising, they're less likely to return or recommend this store. There are laws and regulations around advertising that protect consumers from deception. Violating these laws can lead to fines or even lawsuits.  
Let's see some real cases to help you better understand:  
In its ads, Lumos Labs claimed its app, which offers users access to games and brain training exercises, that it would help prevent Alzheimer's disease or help students perform better in school, though it had no proof. The company was fined $2 million by the FTC.  
The Kellogg Company claimed Frosted Mini Wheats improved children's attentiveness by 20%. But attentiveness did not increase as much as promised in the vast majority of children who ate cereal. Kellogg agreed to a $4 million settlement and to stop using the ads.  
Coca-Cola falsely claimed its Vitaminwater products could promote healthy joints, reduce the risk of eye disease, and have other health benefits. The company agreed to change Vitaminwater labels.  

To avoid violating the law of truth in advertising, better follow below tips:  

- Clearly describe the product's features, materials, size, and functionality. 
- Use clear and accurate photos or videos of the products. 
- Avoid exaggerating its benefits or capabilities. 
- Don't make unrealistic promises about the product's performance or results. Focus on what the product genuinely offers. 
- Be upfront about any limitations, warranties, or potential risks associated with the product.
If you're unsure about a product's details, be transparent with your customers and let them know you're verifying the information. Keep up-to-date with advertising regulations that apply to your location and target audience.



### 2.6 Consumer Protection

Consumer protection laws are a set of regulations designed to safeguard shoppers from unfair and deceptive business practices. These laws apply to dropshippers just like any other retailer.  
Even you are not the one making the products you are selling, but that doesn’t mean you are not responsible for the quality and safety of the products shipped to your customers. If your product hurts someone, you could face personal injury litigation.  
You can check below Important Protections for Consumers:  
  
- **Accurate Information:**  Customers have the right to clear and accurate information about the products you sell, including price, features, warranties, and potential risks. 
- **Fair Return Policies:**  You must have a clear and fair return policy that outlines the conditions, timeframe, and process for returning unwanted or defective items. 
- **Cancellation Rights:**  In some cases, consumers may have the right to cancel an order before it ships and receive a full refund. 
- **Deceptive Advertising:**  False or misleading advertising is prohibited, including exaggerated claims about product benefits or deceptive pricing tactics.
Consumer protection laws can be complex, and it's wise to stay informed about any updates or changes. 

### 2.7 Legal requirement pages

So now that we've known the fundamentals, let's take a look at some legal requirement pages that you'll need in your online store.  

**Refund policy**

While not legally required, offering a transparent refund policy is a great way to build trust with your customers.  By outlining your return process, you show a commitment to customer satisfaction and encourage them to shop with confidence.   
Many online resources and stores offer return policy templates to get you started.  Customize one to fit your dropshipping business and clearly display it on your website.  

**Terms and Conditions**

A terms and conditions policy is a legal document that business owners use to protect their companies.  It clarifies both your rights and responsibilities, and those of your customers.  
It might not be legally mandatory. However, if you face any legal issues, it may help your dropshipping business. Think of it as a user guide for your customers. It can act as a safeguard for your dropshipping business and contribute to a smoother customer experience.  

**Privacy Policy**

A privacy policy is a legal document that explains how a business collects, uses, discloses, and protects its customers’ data. If you collect personal information from your online store’s visitors, then you must have one on your site.  

## **Conclusion**

Overall, dropshipping is legal as a low-barrier entry point for ecommerce beginners. But with opportunity comes responsibility. Protect yourself by understanding these legal requirements, prioritizing customer satisfaction, and choosing suppliers wisely.   
Better work with reputable suppliers, they can help you save a lot of time by vetting products thoroughly to avoid counterfeits, copyright infringement, or safety hazards. Review and sign dropshipping supplier contracts to clarify responsibility for different stages (sales, shipping, product liability).  
Click [here](https://www.crossborderstudio.com/) to start a dropshipping business now with CrossborderStudio.  
Meanwhile, legal knowledge is an ongoing process.  As your business evolves, staying informed about relevant regulations will be essential for long-term success.  

Is Dropshipping Legal in 2024?

<details open>
    <summary><strong>Table of contents</strong></summary>
    <ul>
        <li><a href="#chapter1">About us</a></li>
        <li><a href="#chapter2">Dropshipping Workflow</a></li>
        <li><a href="#chapter3">Contact us</a></li>
        <li><a href="#chapter4">Follow us</a></li>
    </ul>
 </details>
    
## 1. About us {#chapter1}

## **Please jump to section 3 if you are only looking for contact methods  :)**

**CrossBorderStudio** is your one-stop service provider for launching a successful branded dropshipping & wholesale business.
  
- We will provide you with reasonable prices and high-quality products；
- Individual customization, in accordance with your request. (For example, packaging, logo& etc.);
- We can make molds according to your product requirements.
- We can help you send the products directly to your customers. We have efficient shipping companies to cooperate with us.
- We can also check the quality of each product to ensure that your customers receive their package worrilessly.
- We can provide oversea warehouse fulfillment: 1-3 days shipping time available.
- We can also assist you with your after-sale service. Our team will try our best to provide you with outstanding service and in-time feedback.
- We can give you business advice based on market research/current store status and so on.

## 2. Dropshipping Workflow {#chapter2}

Below will be an example of how dropshipping works and how we will work together.

![](https://strapi.crossborderstudio.com/uploads/output_2209f54824.png)

## 3. Contact us {#chapter3}

- Our website to get complete view of CrossBorderStudio
https://www.crossborderstudio.com

- Our help center to get more information about what we do
https://www.crossborderstudio.com/help-center

- Reach out via email and we'll get back to you as soon as we can.
contact@crossborderstudio.com

#### - We also recommend that you join Lark with us to get systemtic help, this is also how we work with most of our clients.

Here's the download link:
<a href="https://www.larksuite.com/en_us" target="_blank" class="underline text-main-blue">
Download Lark</a>

Please add account number: 18324411931 (Name: Steve - XY Studio) or add using the QR code below.

<img src="https://strapi.crossborderstudio.com/uploads/lark_330f1005ab.png" alt="QR code for Lark | CrossBorderStudio" width="100" height="100" class="lg:w-1/2-important mx-auto-important" />

- Need Immediate Help? You can also scan our Whatsapp account below or add +86 18324411931 with WhatsApp.

<img src="https://strapi.crossborderstudio.com/uploads/whatsapp_94ca0983e9.jpg" alt="QR code for Whatsapp | CrossBorderStudio" width="100" height="100" class="lg:w-1/2-important mx-auto-important" />


- Our blog to get the latest articles related to dropshipping and wholesale business: 
https://www.crossborderstudio.com/blog

## 4. Follow us {#chapter4}

You can also try to contact us through the following social media but it may takes a long time for us to reply.

<div class="relative">
    <div class="flex mt-4 space-x-6">
    <a href="https://www.facebook.com/crossborderstudiofficial" alt="CrossBorder Studio Official Facebook"
      class="w-6 h-6 bg-[url(&quot;/img/footer/footer_icon_social_1_24x24.svg&quot;)]">
    </a>
    <a href="https://www.tiktok.com/@crossborderstudio" alt="CrossBorder Studio Official Instagram"
      class="w-6 h-6 bg-[url(&quot;/img/footer/footer_icon_social_2_24x24.svg&quot;)]">
    </a>
    <a href="https://instagram.com/crossborderstudio" alt="CrossBorder Studio Official LinkedIn"
      class="w-6 h-6 bg-[url(&quot;/img/footer/footer_icon_social_3_24x24.svg&quot;)]">
    </a>
    <a href="https://pin.it/3a8mAms" alt="CrossBorder Studio Official Twitter"
      class="w-6 h-6 bg-[url(&quot;/img/footer/footer_icon_social_4_24x24.svg&quot;)]">
    </a>
    <a href="https://www.youtube.com/@CrossBorderStudio/featured" alt="CrossBorder Studio Official Youtube"
      class="w-6 h-6 bg-[url(&quot;/img/footer/footer_icon_social_5_24x24.svg&quot;)]">
    </a>
  </div>
</div>




How to Contact CrossBorderStudio

E-commerce, or electronic commerce, refers to the buying and selling of goods and services over the internet. It involves the use of digital technologies to facilitate transactions and enable businesses to reach customers globally.

Learning basics, browse tutorials and articles or contact for help

Help Center

Add our WhatsApp account +86 18324411931 for immediate contact!

WhatsApp Immediate Contact

Read our blogs to get all ways to contact us. 

Want to get in touch?

We will contact you at your request and at the most convenient time!

Contact Us

In the Dropshipping model, you don't need to hold inventory. Instead, you simply forward customer orders directly to the supplier, who is responsible for shipping the products. This flexible retail method allows you to easily start an online sales business.

A guide to Dropshipping, a retail fulfillment method without inventory. Learn how to run a successful Dropshipping business. Start with CrossBorderStudio.

Product sourcing refers to the process of identifying and selecting suppliers or manufacturers to obtain goods or raw materials for a business. It involves researching and evaluating potential suppliers, negotiating prices and terms, and ensuring the quality and timely delivery of products.

Inspiration is the process of being stimulated or influenced to think creatively or come up with new ideas. It can be triggered by various sources, such as experiences, observations, conversations, or exposure to new information. Inspiration often leads to creativity and innovation, enabling individuals to generate unique solutions or approaches to problems.

Marketing is the process of promoting and selling products or services to target audiences. It involves understanding consumer needs, developing strategies to communicate the value of a product or service, and creating engaging campaigns to attract customers.

Loading...

E-commerce

E-commerce

What Is Dropshipping and How Does It Work? (2024 Version)

Is Dropshipping Legal in 2024?

How to Contact CrossBorderStudio