Is Dropshipping Legal?

Can you get in legal trouble if you dropship? Is it allowed? Even if dropshipping is legal, is it allowed? If not should you do it anyway? Find out in this video!
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Disclaimer: This video is not legal advice. It is for entertainment purposes only. By watching this video you are not entering into an attorney client relationship with Paul Lipsky.
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[@808T]

Most old school mail order catalogs were drop shippers back in the day.

[@nancyross3964]

if not then most of this country will be in jail real fast

[@applesaucedog2642]

Not really. It’s borderline tax fraud because of how you aren’t paying the import taxes.

[@ChristaBenjamin]

Thanks Paul. Always motivating to hear from you! Keep it up!

[@frankg.6958]

Another great short sweet informative video!

[@ellectrokingg5899]

So how do you provide information about a product you never had in your possession? By reading the description in the ali express site you are ordering it? Dropshiping is a "business model" that tricks the consumer to buy something that has no direct information about that's why in my country IS ILLEGAL. It's also illegal because the provider of the item you are selling, sells the item to a person and not a company and if the tax official check your actions you will be in jail. So dropshiping IS ILLEGAL

[@PaulJLipsky]

There are so many things that are wrong about what you wrote here. First, big companies sell products every day that they've never looked at themselves. They (just like me) use the product description given to them by whoever they bought it from. There's nothing wrong with that. Second, dropshipping is not illegal. Full stop. Third, I have no idea what you're trying to say about taxes. That's not true either.

[@izaacjoeston6545]

Hey paul, i have a dumb question. Can you get sued for doing it when your not supposed to?

[@KrisMcCauley]

So I want to make sure I am understanding this correctly - it's not illegal and it's not allowed but you are advising that people still do it? I am all for advocating dropshipping the right way on Amazon but the way that is not allowed, ie - dropshipping from retailers, will most likely in account suspension. Often times when I have heard individuals reference account suspensions it is without warning. So if I did understand that correctly that sounds like terrible advice. Interested to see if I misunderstood what you were saying though.

[@PaulJLipsky]

I'm not advising people to do it or not do it. I'm just talking about what I'm doing and why I'm doing it even though it's not allowed.

[@Arthur-Silva]

You definitely misunderstood this video.

[@T47]

My amazon account closed because dropshipping

[@relizh8792]

I ask eBay and they said it is allow !

[@theEntropologist]

Let's say that dropshipping is illegal in one state i.e. CA. That means that all California's residents aren't allowed to dropship. What I want to know is if you're living in an other state, will it be legal to dropship items to CA. My second question is if Dropshipping is illegal in the USA. Will it be legal to dropship from another country (I live 4800 Miles from the US)

[@PaulJLipsky]

It's not illegal

[@theEntropologist]

I know it's legal. I just wanted to know how US laws work.

[@WuhTF]

Hi Paul, can you please make a video about what is illegal to drop-ship? Patented design etc.

[@larschokier9294]

Love the vid but have a question can you drop ship from aliexpress?

[@PaulJLipsky]

It's not a great supplier

[@ecruz1542]

Great video! Will you be making a training about Amazon drop shipping?

[@MichaelGreenhaus9404]

Great explanation and video, Paul!

[@walkingandcyclingtours3114]

Hi , I have got a buyer that has received an item and send me an eBay message requesting to return the item, a mini torchlight, because his dad didn’t like it, he wanted me to send a return label. Are buyer able to request for return if they don’t like it after receiving it? I have a 30 day refund business policy in place with eBay. What is your advise on this? And if I have to do a return, will the Amazon seller accept it ? Thanks

[@anitamitchell6434]

Awesome video.Thank you!

[@MoisBallin]

I know this isn’t related to this video but, how many total listings do you have in DSMtools to reprice? Thanks in advance

[@Arthur-Silva]

Paul, thanks for all the content! I’m trying to get started in this business and I see some people listing thousands upon thousands of random items and it’s overwhelming, don’t they have to pay listing fees? It’s about 0,30 cents per listing, right?

[@PaulJLipsky]

Yes that is the model for some people but not what I do

[@druryzymo8195]

Okay please can you answer me question. Can i just go onto ali express and pick anything to droppship? At the moment i am not asking them if i can dropship, i am just listing items on my shopify. Also i am only listen ite.s which dont have any logo or names on them

[@davidmuller3768]

hi thanks great video! do i need a re seller permit to sell an x box or a braun shaver on my own website when i am dropshipping it from amazon to my own website? thanks

[@PaulJLipsky]

I am not sure. I would not sell products in your own website. It’s too difficult.

[@Feriin]

Just a nit pick here, but legal and lawful are two very different things.

[@PaulJLipsky]

You're right. I should have said *illegal* at 1:19 Thanks for catching that!

[@KirkBuchanan]

Great video

[@johndevaux1254]

If I where to advertise stuff from Ali express on shopify and purchase and ship it when they purchase of shopify is it allowed

[@PaulJLipsky]

Yes

[@johndevaux1254]

Thanks for the reply!

[@mr.medina4967]

Paul, do you recommend making a store for each source, Home Depot, Walmart, Overstock...etc?

[@PaulJLipsky]

That's not necessary imho

[@marzoval9551]

When dropshipping on Amazon, do you just rely on credit cards or pocket money to fund customer orders due to their 14 day pay periods?

[@PaulJLipsky]

Credit cards but I'm working on a better solution

[@Seamonkies321]

Excellent Video

[@visionz7076]

Hey Paul I’m a new seller and I have already sold 7 items and shipped all of them out and eBay holds on to my funds for some items do you know how I could get eBay to not hold my funds and just release them right away because I am drop shipping and I need the money right away to pay for the supply

[@PaulJLipsky]

If you keep uploading tracking numbers on a regular basis and keep up good metrics, the hold will be released eventually

[@user-pm8pp3jb3b]

Do you have to declare the company to the tax office

[@PaulJLipsky]

You have to declare your profit

[@BradleyC]

What does a customer say if they bought on amazon and it come in a walmart box? I might be confused. If i bought on ebay and it came in a walmart box not so confused. How does that work? Thanks

[@Urziel99]

That's one difference between FBA (Fulfulled by Amazon) and FBM (Fulfilled by Merchant). Any dropshipper listing will be FBM. FBA comes in Amazon boxes (and is eligible for Prime shipping) FBM in that respect is just like Ebay.

[@PaulJLipsky]

check out this video: www.pauljlipsky.com/invoice

[@stacyjeffress9807]

Hi Paul. You said in a previous video that you have your virtual assistant just copy and paste the listings. So when do you optimize your titles and how?

[@PaulJLipsky]

They optimize the titles before they list them

[@stacyjeffress9807]

Thanks Paul. Love the videos!!

[@stacyjeffress9807]

Thanks Paul. Love the videos!!

[@stacyjeffress9807]

Thanks Paul. Love the videos!!

[@SantiagoBuiles17]

Hello Paul, do you have an email so i can contact you. I would pay for some guidance please about dropshipping. Thank you

[@pacthor277]

Sharp looking Champ

[@omerashkenazi3459]

Hey Paul, do you know what to do with the return new policy of home depot?

[@PaulJLipsky]

If you ask for a return during the daytime in the USA it has been working

[@omerashkenazi3459]

Ask them for return label, please tell me what they say.. they talked about new return policy: i need to go to return the item via home depot.

[@merrittdotson90]

Love your stuff. How do you handle sales to states where you are not tax except? Is there something that should be set up in EBay or DSM to cover the extra cost?

[@PaulJLipsky]

Yes there are many steps involved but there is a way to account for that on eBay.

[@zahidhussain-306]

Do we have to run ads for eBay like in shopify?

[@PaulJLipsky]

Nope

[@zahidhussain-306]

Paul J Lipsky then what do we do when we don't get any sales(for a newbie)?

[@Wikidpalm]

Amazon very smart it's not allowed in case some shit happen

[@T47]

korill mac yeah my prime account get closed yesterday after they find I order for multiple shipping adress

[@joshuakeck9923]

U didnt adress photos its all copyright and all illegal if you copy and paste a picture that isnt yours and sell it especially trademark

[@kellysesny4165]

Yes...this is what I am interested to know as well. I am ready to purchase your course Paul, but wanted to find out about the copyright and legal issues with that before I begin dropshipping! Thanks Paul!

[@PaulJLipsky]

Great suggestion for a future video

[@NickSandt]

Not just photos but if you’re dropshipping a branded product!

[@raivons]

Definitely some decent jail time

[@MadnessInsane]

First

[@Dawn-S]

First!

[@PaulJLipsky]

Winner :-)

[@PaulJLipsky]

In my account it shows she was first :-)