Dropshipping : our advice before purchasing
Dropshipping, or the process of selling a product without actually having stock, is a legal form of business. However, there are some inherent risks for the consumer. Long delivery times, hidden fees, and counterfeit or bad quality are all possible complications when purchasing from dropshipping websites. It is better to know how to spot dropshipping sites and to protect yourself from the possible risks.
- What is dropshipping?
- What issues come with ordering from a dropshipping website?
- How to detect a dropshipping site?
- Dropshipper or supplier: who is responsible for my order?
- Dropshipping and value added tax
- Influencers and dropshipping
- What to do when you have a problem with a dropshipper?

What is dropshipping?
Dropshipping is an online selling method where the dropshipper does not manage or hold any inventory. Instead, the dropshipper creates an online store. The online store advertises products that different suppliers made in other countries and created and/or shipped. As soon as you place an order, the dropshipper sends the order to the foreign factory or another intermediary. The dropshipper won‘t even be in charge of the shipping. This is known as ‘direct shipping‘ or ’direct delivery’.
Dropshipping has existed since the beginning of the internet. Recently is has become even more popular because of social media. Internet coaches often create online dropshipping programs, promising young adults quick money.
What issues come with ordering from a dropshipping website?
Most online sellers upload products that they don’t actually own. Therefore, you tend to take risks when ordering from dropshipping sites.
Products may not be the same quality as advertised
A seller will advertise high quality products when in reality they can‘t control or guarantee the quality of the product. Therefore, you risk receiving products that are defective, bad quality or are simply not as advertised. Even worse, some products can be dangerous since they do not respect safety standards of the European Union. To make sure, it is imperative that you look for the CE logo on the product. Other sites also sell counterfeit products. You can incur fines if you possess these products.
Lack of inventory
A classic problem of dropshipping. The online site advertises available inventory but in reality, the actual supplier does not have any product. Since the dropshipper does not manage their own stock they aren’t able to guarantee your order. Nevertheless, dropshippers will immediately charge you the price of the product.
Consult the terms and conditions to find out from what country the products are shipped
This inquiry often provides detail into where the dropshipper is operating from. You can also find helpful information in the privacy statement/information on the protection of your personal data.
Long shipping delays
Dropshipping sites often advertise quick delivery within only a few days. However, often the product isn’t actually made in the European Union. Therefore, the delivery times can vary a lot depending on the country where the product is coming from, issues with transport or entry into the EU.
Extra fees
Since many products come from countries outside of the EU, European custom agents may control any product entering an EU country if it exceeds 150€ of value. If customs blocks your item, you may have to pay a fee to the customs office or pay the shipping company for the incurred fees. Before ordering, make sure to look at the seller’s terms and conditions to know whether you must pay these fees.
Complications with returning the product
Returning the product can be a tricky process. As the dropshipper doesn’t handle inventory, you may need to send your product back to the actual supplier. This can cost a lot of money if the supplier is on the other side of the world. In case you change your mind, and the terms and conditions provide for you to take in charge the return costs, the price of sending it back can often be even more than the price of purchasing the item.
How to detect a dropshipping site?
It is not easy to spot dropshipping sites. Most sellers do not include this detail in their terms and conditions. Often you don’t realise that the site is a dropshipping site until you have already placed your order and see that the package comes from a country outside the EU.
Here are some tips on how to detect a dropshipping company.
Make sure to verify the identity and the contact details of the online seller.
You should find these details in the general terms and conditions of sale or the contact page. If the address sends you to a central part of Paris, for example, then it is likely that the seller does not manage their own stock. It is probably just a postal address.
For sites that end in ‘.fr‘ or ‘.com’, you can search for the site via WHOIS or AFNIC. This allows you to see if the seller is transparent on who registered the site and when. Be aware if the real identity of the shop owner is hidden behind the registration office.
More advice in our article ’How to check the trustworthiness of a website ?’.
Check the official trade register
With a quick search in the companies’ register accessible via the e-justice portal, you can be sure that the seller is in in good standing and is officially registered. It is also important to check the date of registration. For example, if the online site states that they have been an expert in a certain field for 10 years but the site has a registration of 2 years then you might want to reconsider your purchase intention.
Compare images of the product
Make sure to do research so that you pay the best price for the product. It can be helpful to search for an image. You will often find dozens of other sites selling the same product. If this is the case then it is very probable that you are purchasing from a dropshipper.
Always compare prices before you purchase
Verify the price of the product on multiple different websites. Make sure to also compare the product with a competitor’s brand or product. If the advertised price is considerably lower than other sites then be cautious. The same applies for a promotion or discount code given by an influencer.
Beware of manipulative sale techniques
Dropshipping sites often have comments saying ‘5 other people are interested in this product‘. There is often a countdown of a certain discount, to try and persuade you to purchase it quickly without taking the proper time to think about it. Don’t fall for this pressure of ‘dark patterns‘. Often you can simply reload the site and see that the countdown is no longer there which indicates that there is actually no real urgency.
Consult product reviews and internet forums
Other consumers have often already left reviews on their experiences with the company. Make sure to distinguish between the fake positive reviews which the seller often publishes himself or buys them.
Read the seller’s terms and conditions
If they don’t exist, are contradictory, very short, and do not include any details on the company’s identity, stay away!
Dropshipper or supplier: who is responsible for my order?
From a legal standpoint, a dropshipper has the same obligations as a ‘classic’ online seller.
Good to know: before check out, the seller must provide certain information.
- The total price of the products with taxes included and any custom obligations. The amount of customs duties can give you an indication of where the product is coming from. If there is a mistake with the total price (delivery fees, import fees you have not been informed about, etc.), you have the right to refuse the delivery and can request to cancel your order and receive a full refund.
- Two-year legal guarantee of conformity
- Your right of withdrawal
The dropshipper is responsible for the delivery of your order and any intermediary in case of an issue.
Good to know: dropshipping and value added tax
Faced with more and more questionable dropshipping practices, France has created a new tax system. This system applies specifically to ‘imported foreign goods’. Even if the online seller indirectly intervenes in the delivery of the product, they must declare their finances and pay the value added tax for the imported good. This measure focuses on dropshipping as well as other e-commerce platforms.
More information in our article Purchases and VAT.
Influencers and dropshipping
To boost their sales, dropshippers often recruit influencers. There are many different influencers on social media that create adds such as ‘this product changed my life’ or even telling you to take advantage of a bargain now before an ‘exclusive discount ends’. These convincing messages usually lead to a link affiliated with a dropshipper business.
Influencers targeting a French audience must preface their posts by stating that they are paid to promote these products. For example, they may introduce a ‘partner’ or a ‘sponsor’ of their video by adding hashtags to their post. According to French law, they are also obligated to inform the consumer of the availability of the product they are promoting, in the same way as other online sellers. Nevertheless, many influencers do not respect these laws.
Make sure not to fall into the traps of a ‘good deal‘! Try to find more about the site promoted by your favourite influencer. More importantly take time to compare prices, as you can often find better deals elsewhere.
What to do when you have a problem with a dropshipper
- First try to find a solution with the seller directly, in writing if possible.
- If you live in France and have a dispute with a seller in another EU country, Iceland or Norway please do not hesitate to contact us. Please note that we do not intervene in cases of fraud.
- If you paid for you order with a bank card and you have not received anything, contact your bank. You are obligated to ask for a reimbursement via a process called chargeback.
- If you are a victim of fraud, report it! In France you can report fraud to the French fraud consumer authority on the SignalConso platform.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.