Who do you actually e-shop from? Warning finger raised for dropshipping

The Swedish Consumer Agency warns now for the risks of drop shipping. Dropshipping is a business model where the manufacturer sends goods directly to the end customer on behalf of the seller. The seller thus does not function as a regular reseller but more as a broker who does not touch the goods or have a stock.

The Swedish Consumer Agency writes that even though dropshipping sellers can give the impression that the goods come from the Nordic countries or the EU, they are in fact often from Asia. If there are problems with the delivery or if you regret the purchase, dropshipping is therefore seldom beneficial for the consumer. There may also be additional costs for the consumer, for example in the form of customs duties. Goods delivered from Asia also often have other rules for product safety.

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– If you buy a product that is delivered from, for example, Asia, it can mean that you get home a product that is illegal in Sweden and directly life-threatening. Children are particularly vulnerable because more and more cheap toys are bought online that can lead to serious injuries or worse, says Nora Shoki, legal adviser at ECC Sweden (which is part of the Swedish Consumer Agency’s information service Hello Consumer) in a press release.

The Swedish Consumer Agency points out that dropshipping may be involved if the information about the delivery time is deficient, the company address is unclear or the website is to a private person. Another warning signal is if there are spelling mistakes or strange translations. The request is to read the terms of the agreement before making a purchase. If there is information about customs and VAT charges, the goods are guaranteed to be outside the EU.