Is Dropshipping Legal? And Common Mistakes That Break The Law

So, you’ve decided to get rich with dropshipping? Fantastic! Dropshipping is a great business venture to get started with in 2025 and can help you get to where you want to be financially… If you do it right. But before you dive in head first you’re probably wondering - is dropshipping legal? Don’t worry, we’re not going to teach you how to do this if it's going to lead to legal consequences further down the line. In this blog from SuperDS we answer the burning question: is dropshipping illegal? We’ll tell you how to play by the rules as well as explore the common mistakes newbies make that could land you in deep trouble. Keep reading and with our guidance you will finish knowing how to legally start a dropshipping business with confidence and finally get to the fun part: start making money!

What Is Dropshipping?

Dropshipping is basically when you sell products but a third party handles the manufacturing, supplying and delivering the products. You don’t have an inventory, you just list the products and they will handle the rest. One of the big benefits of this is that you’re not losing money if your stock doesn’t sell since you’re not the one supplying the inventory, you will just make money when one of the items listed on your site gets sold. It is a low risk business model, so if you’re thinking about starting a new business and are worried about losing money, dropshipping is a relatively safe venture to test out.

Is Dropshipping Legal?

In the UK, the US, and most other parts of the world, dropshipping is legal. You’re basically an online middleman. However, "legal" doesn't mean "do whatever you want." It’s also important to note that since customers are buying from you, you are the one responsible for the safe delivery of the items that you sell.

However like with any business there are things you need to be aware of. For example you will need to pay taxes, and this will be different for every country. You will also need to read the terms and conditions for the platform you're using to dropship as they will have different policies.

For example Shopify allows you to dropship as long as you’re not breaching any government or marketplace policies or guidelines whereas you can only dropship on Etsy if your products are crafted items or antiques. Whatever platform you're using you need to make sure you read and follow their terms and conditions thoroughly or you could run the risk of your account getting banned and your business to be shut down.

Is Dropshipping Legal On eBay

So, is dropshipping legal on eBay? Yes, if you’re wondering how to legally start a dropshipping business eBay allows you to dropship on their platform and it’s a great option for those looking to start this kind of business as long as you’re following their guidelines. If you’re dropshipping where you’re fulfilling orders directly from a wholesaler then that’s okay but you’re not allowed to sell a product then buy that said product from another retailer that ships to your customer. See the user agreement for ‘is dropshipping legal on ebay?’ And start your dropshipping business on eBay today.

How Is Dropshipping Illegal? Risks To Be Aware Of

You didn’t come here for how to be almost legal. You came here to avoid getting your PayPal account frozen while customers demand refunds. Here’s what not to do:

Selling banned products

Common sense says you can’t dropship weapons or drugs. What’s less obvious is tobacco, alcohol, and anything that looks remotely hazardous. eBay has a handy banned-products list – read it before you list that pepper spray keychain.

Copyrighted products

Thinking of dropshipping Marvel t-shirts or knock off Nike trainers? Think again. Selling anything with a brand name or logo that you don’t have permission for is a fast track to getting sued. eBay has something called the eBay VeRO page, which is basically a list of things you really shouldn’t be selling unless you own them.

Breaking Shipping Policies

Different countries have different laws about delivery times, consumer protection, and returns. If your shipping times are estimated arrival: 3-8 weeks, you’re asking for trouble there. Also, refund policies aren’t optional – if your customers don’t get their stuff, they will demand their money back. And they will leave a review saying you’re a scammer.

How To Legally Start A Dropshipping Business

If you want to make sure that you don’t run into any of these issues then there are steps you can take to ensure that you’re following the rules and your account isn’t going to get suspended.

Make sure that you always source your products from reputable suppliers Always check that the products you're dropshipping aren’t copyrighted by checking the eBay VeRO page. Always comply with the shipping policies so you don’t get a ban.

Avoid Mistakes And Dropship With SuperDS Today

Now that you know how to legally start a dropshipping business, SuperDS is here to help you take this one step further. We are an automated dropshipping tool for eBay, helping you to elevate your dropshipping business. We have a 1 click lister option so you can easily add products to your eBay store with just a click of a button. This means that you don’t have to spend hours sifting through products and manually adding them to your store, our tool handles all that for you! You will also have access to our reputable suppliers, so if you want to make sure dropshipping is legal then with our tool we can give you access to our legitimate sellers so you are dropshipping correctly. Doesn’t this sound so much easier? Do you want a streamlined dropshipping to eBay business? Get started with SuperDS today and watch your business grow!