Is dropshipping legal? Is Dropshipping Legal on eBay and Amazon?  We’re going to find out in this article. Today’s question comes from one of my students.  He asked me “is dropshipping illegal? Is Dropshipping Legal on eBay and Amazon, as I heard that it’s not allowed on amazon.com.” This is a great question because it allows me to not only answer whether or not drop shipping is legal or not, which is a question I get quite a lot; but also to explain the difference between whether something is the illegal or legal and if it is legal, whether it’s allowed.

There is a big difference. The information in this article is not legal advice. It’s just general information for knowledgeable purpose only. Now that, we got that out of the way, let’s begin to answer this question.

Is Dropshipping legal?

I’ll break it down for you guys is dropshipping legal? Now in order for something to be illegal, generally speaking, there has to be a federal state or local law declaring it to be unlawful and I’ve done a lot of research on this and I can say without a doubt that drop shipping is not illegal.

Now if you think about it, there are big websites like wayfair.com, for instance and their primary business model is dropshipping. So if dropshipping was forbidden or wasn’t allowed, surely a huge company like Wayfarer would have been shut down a long time ago. But it hasn’t been shut down because it’s perfectly legitimate business model that’s been around for a long time and is legal now.

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Is Dropshipping Legal on eBay?

That’s only part of the story here because whether or not is legal is irrelevant in some circumstances because the real question is, is dropshipping legal on eBay?

They are allowed to set up their own Terms of Service, create their own rules for their platform. They’re allowed to decide whether they want to allow dropshipping or not so for instance if we look at Shopify, it’s very clear that dropshipping is allowed. They in fact encourage it quite a bit. They always have webinars about how to set up dropshipping stores on Shopify. They have plenty of articles all about how to set up a Shopify dropshipping business on eBay, if their terms are met accordingly by the dropshippers.

As well we know that it is allowed. If you go into their Terms of Service and their common questions and just general information on ebay.com or amazon.com, you’ll find articles explaining that “is dropshipping legal on eBay”, as long as you are providing good customer service, which sounds pretty good to me. So, I’m going to give those articles, thumbs up and if you like this article makes sure to give this article thumbs up as well.

Is Dropshipping Legal on Amazon?

Then we have amazon.com with the question in the mind that “Is dropshipping legal on Amazon”. Now Amazon’s a little different, because Amazon does allow drop shipping. This is only possible, if you have a good relationship or a proper agreement with the manufacturer directly.

Now what’s not allowed in Amazon, is retail dropshipping, so that’s when you get items from Walmart and ship them directly to customers on Amazon. That is not allowed. However that doesn’t answer the third question.

The third question is- “if it’s legal and even if it’s not allowed, do you still want to do it, and with Amazon dropshipping for myself and for many others?” The answer is yes, we’ve been doing it. We’ve had success doing it. So we’re going to keep doing it and the reason it still works even though Amazon doesn’t allow it is because they kind of turn a blind eye to this as long as you are providing great customer service and that means uploading tracking numbers, answering customer questions, making sure to respond to all the disputes, that are opened up just providing the level of customer service that buyers expect when they come on to Amazon.

Now, it is very difficult on Amazon. So, I wouldn’t suggest you just jump into this without some sort of training but just know that you can do it. Even though it’s not allowed because it is legal and the worst that can happen is that they tell you, that you can’t do it anymore.

Keep that in mind too because dropshipping is not Illegal on Amazon if Amazon finds out, you’re doing it and you’re not going to go to jail. You’re not going to get arrested; the most that could happen is that they can tell you you’re not allowed to do it anymore.

So the second part of this that I want to discuss is, okay, we know we can do dropshipping on eBay and Amazon. But where can we dropship from and again this is up to the different retailers. So for instance overstock.com is totally fine with you dropshipping from them. Walmart is also fine with it, however if you go into their terms of service they do state that they reserve the right to prohibit sales to resellers but in my experience they never enforce that same thing with Home Depot.

And with Amazon they again do not allow you to dropship from them but people do it anyway because Amazon doesn’t ban you if you do it. And my thought is because Amazon sees that you’re getting a lot of sales for them so why are they going to complain about it right.

So we know that dropshipping is legal, dropshipping is legal on eBay and Amazon. We know that we’re allowed to do it onto eBay, onto Shopify and that you can do it onto Amazon as long as you know what you’re doing and we know that there’s a bunch of different online retailers that you can dropship from.

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Product Research for Dropshipping on eBay and Amazon

Though, you can use normal product research tool, as they will suggest the bunch of products based on the trending level of the product. But the trending level of the product is not everything while dropshipping on eBay and Amazon. You have to keep in mind, the terms and conditions of the products to be dropship on eBay and Amazon.

You can even choose the products for dropshipping directly from Aliexpress, or Alibaba but, still, the terms of service of these websites comes in between while doing product research for eBay and Amazon.

Though I can suggest you some best tools, which you can use for dropshipping but taking the mind about the compliance policies of these sites, what I can suggest is only one tool- e-Sniper, which is a super tool for product research and is embedded with 6 more sub tools. Though the tool not completely suggests the policy compliant products, but still, it never dissatisfied me, with its choice, while doing dropshipping on eBay and Amazon. You can take the trial of the tool e-Sniper now: Click Here

So I hope this answers your question about is dropshipping legal, is dropshipping legal on eBay, and is dropshipping legal on Amazon, what the difference is between being legal and whether it’s allowed, which products to choose for dropshipping on Amazon and stuff like them.

You can check out Our Post on How to start dropshipping business for free on shopify with no moneyand can have the idea about how to start your own dropshipping business. Also, if you want to start Dropshipping on eBay, then you can check out this one- eBay Dropshipping Business Masterclass 2021. Hope the articles going to help you with your queries.

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Thank you.

The Blog Mentor.

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