Starting a dropshiping business may need a small capital but that does not mean it is a walk in the park. There are lots of other things that you will need to consider such as managing your sales and your business operations. There are also several other logistics involved in this business and one such important aspect is the legal liability issues. Since you will be delivering products from one supplier to a customer, it is you who will have to deal with the complaints and issues, if any. You cannot ignore it because the customer will know you and not the supplier to contact them.
Legal liability issues
Yes, this is not a common issue faced by the dropshippers but this is something that you cannot be completely ignorant about. If you go through the amazon fba courses you will see that it features there and therefore implies that it is worth knowing and mentioning. This is an important aspect because there are a few suppliers who are not legitimate irrespective of their claims made. In addition to that, if you work with these suppliers there is also a chance that you will not know where the merchandise comes from. Here comes the need to know the legal liability.
Liable as the vendor
In ecommerce dropshipping you are as complicit as your vendor. This is automatic and is irrespective of the type of vendor you are working with. You are a party to whatever illegal activities they are up to. The wort part is that more deceptive and illegal the supplier is, your liability is more as well. Sometimes, their illegal activities may be to the extent of using a trademarked logo illegally or using the intellectual property of another company. This happens more often than not which will put you in a tight corner.
Dropshipping agreement contractYou can avoid such issues and stay away from legal hassles and penalties by having a solid agreement contract with your vendor for dropshipping. This will put you in a safe position even when there is such a potential problem. This is something most of the dropshipping upstarts do not know and ignore thinking it to be an additional or unnecessary expense for their goten dropshipping business. However, this should not be the approach. It is ideal that you keep in mind to have a proper agreement while choosing your suppliers.