How To Not Get Sued When Drop Shipping!
ฝัง
- เผยแพร่เมื่อ 25 เม.ย. 2018
- I've been getting more and more emails about the legalities of drop shipping so I decided to cover this topic in this weeks episode of Drop Ship Weekly! 🚀 Free Training Webinar + Our List of 237 Product Ideas: dsl.life/ZR4G6rmVMXA
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Voted “Best eCommerce Course” by Shopify, Drop Ship Lifestyle is an online eCommerce coaching program that has helped more than 8,000 students in 25 countries. Created by Anton Kraly in 2013, Drop Ship Lifestyle gives students the knowledge and tools necessary to create freedom through entrepreneurship by leveraging the power of drop shipping.
Since the beginning, Drop Ship Lifestyle has found great success while building an international community of digital nomads and entrepreneurs through adhering to core values of passion and authenticity.
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The biggest issue is the fact that no one warns us on the biggest way of getting sued, by selling knock offs. People just think knock offs only apply to big brands but the reality is, any "generic" product can end up being a knock off. So any product even if they are generic products could get you sued. The biggest problem with dropshipping.
Thank you Anton. I'm part of DSL and i appreciate your integrity.
Solid “good to know” advice on setting up a real business. Thanks again!
You are the best one talking about Drop Ship! Thank you so much for all your help and the knowledge you share with us.
Appreciate that, Hassan!
Thanks Anton. Really useful information for dropship beginners
Thanks for this video and I have to learn some more before going into this dropship business.
Number one you’re on point as always Anton. Thank You for the information... this was a BIG concern for me ❤️❤️❤️
You're welcome, Phyllis! Happy to share :)
First video I’ve seen of yours, ill be sure to stick around, useful information, I have asked other people in the ecommerce business & they haven’t said anything other than it’ll cost me like $200 to get an answer
real world advice. Thank you.
Thank you! I was nervous about this at first but your video was really helpful
Did you plan on doing it now based on this info? Cause I was gonna do it but I didn’t know if I would get in trouble or not
super in depth value man! Thanks for the vid
Thanks, Brian!
Thanks so much! This has been my biggest hesitation with starting.
Glad it was helpful!
Bro I got your ad on your video, amazing 😂🤟
Appreciate the info!
TH-cam recommended your vids after I watched some Alex Becker vids... Becker has been on a blitz recently.
Anton, will you be making a video on setting up a Shopify store? There are a bunch of videos out there with contradicting content.
Thanks for this huge information, you saved me from huge loss.
would you also let me know how to check product licensing and certifications requierments and where to check them from?
for example
I want to sell in US, but i dont know if the products are required to have license or not. I would really appreciate your help on this.
Great info! thank you very much!!!
You're welcome!
Thank you Anton.
The video was very helpful. My only question now is do you need product liability insurance?
Hi Anton,
Please do a video for us in diaspora, countries, not in the US, but want to do business there, dropshipping in the US. Am struggling to know what legalities I need before I launch the store on Shopify. How do I even pay taxes?
Is it possible to just work with my taxable business opened here in Kenya?
Love your work!
Thank you! Cheers!
Hey there, I have a question. I am on way to start a dropshipping store but then I watched some video about copyright infringements and trademark. After that, I saw that this supplier has a registered US trademark. I asked them can I dropshipped their product and they say yes. But what about copyright and trademark? I do not understand can I dropshipp product that has their logo on it? 😁
Thanks but other than ip, im worried about a product that can burn a house down like what hapened with hoverboards, or a product that might need to meet some standard or have specific labelling.
Product indemnity product liability insurance etc necessary for me to risk my house ive spent 30 years paying off...
So the effort in finding low risk products, researching every product contacting government authorities snd checking standards labelling etc ..having to do a full recall of all sales, nor good...lots of work. I have a lot to lose. Easier if i was 18 years old and broke ha ha...
Any advice would be good. You only scratched the surface.
what about patents? Aliexpress/baba sellers love to rip off patents and sometimes it can be hard to tell
Hey Anton, I'm a new member of DSL. Loving the course. The information is priceless. However, do most drop shippers, that are not using your system of pre-approval, just list items in their store, swipe the pictures and description then sell at or for a few dollars more than the list price? I feel a little uncomfortable doing that, especially since there seems to be no or minimal profit in that. This is my first online store. I ask only because I am anxious to get started and getting approvals does take a little finesse and time to develop a dialogue. Do I wait? DO I run with it? Any advice would be very helpful. Thanks for all your efforts.
Hey Chris, I'm happy to hear that you're loving the course! I understand that your anxious to get started but I would 100% recommend doing things "the right way" and getting approved first. You've just got to keep in mind that you're playing the long game here and that you're building a business that should be growing for years to come. Hope that helps!
This is why I don't sell merchandise like game of thrones hoodies. I work with companies directly and I don't have to worry because I have permission and i've signed documents to work with them. Gotta be smart!
wooow...you so smart...
Lol
Where do you source your items from
Asia? America?
@@Mistyfgdf Canada, right now
@@LaurensHazelEyes So you contact a company "Hey im drop shipping.... Can i get rights to sell your products" They send a form or something? No way they just say "Ok"
What he isn't tell you that if you co mingle, your corporation will not protect your assets. The first thing is they will sue the corp and yourself to find out if you have co mingle. If you have than you will be personally liable. If you do not, they will drop the lawsuit against you but proceed against the corp or llc.
What if i dropship for example an electronic product and it burns and the client gets wounds because if it what would happen . Do they sue me or the supplier?
Iv'e watched countless drop shipping videos and haven't heard anything about the legalities. Be careful out there I just about had everything up and running until I thought about the taxes.
sammeeeee
Hi do you have any ideas what to sell then? Everything seems like this branded now and I don't know what to do thanks!
How do you withdraw money from an LLC? I've read that you cannot withdraw money for personal use as it belongs to the Company unlike sole trader. Can you open an LLC and being operated by 1 person just like a sole trader?
What about say your product causes a fire then are you still liable or is the manufacturer liable?
When selling high ticket products, can I start selling courses on drop shipping or social media marketing as well, will that count as high ticket?
hi great video!
do i need a reseller permit when i dropship from amazon to my own website?
When is the time you will get a business license for drop shipping online store?
I am new in this , less a month ago..
Still in learning..
Thanks a lot for the valuable information, how can I get in touch with you for a website review?
I'm confused because you can purchase something and turn around and sell it on eBay maybe I'm not understanding correctly??
so would it be required to have an llc to dropship or as long as you do it right you dont need one?
I really need this question answered. How would I get aproved to resale wayfairs stuff on shopify? Do I have to email or call, or sign up for something?
How do I get in contact with someone before selling their products I never get a reply
What the heck is the difference in resell and infringement
Hey Anton Great Video !!! Quick Question , what if there is a logo in the background of one of my shopify images like Pantene product next to a Shower Faucet? Is trademark infringent? Can it get you into trouble?
Hey Quinton, you should only use images that are provided by your suppliers, or that you get from stock photo sites.
Scenario: bob gets someones product ad video off youtube and re-uploads it under creative commons without permission. 1 year later charles made a dropshipping store and edits, and uses bobs creative commons upload but put the link to bobs original video in the description. Is charles safe?
What if I have a contract with an authorized reseller?
How can you contact the brands to ask for permission
better than all the paid courses by those fake gurus
Do you need liability insurance for dropshipping?
you sound like a very professional guy, I have a few questions.
I just started dropshipping, is was more of like a test experiment. I made 5k in 1 month and am deciding on continuing or not because all the tax stuff and permits sound hard and i dont have anyone to help me fill out forms or anything like that. Should i have charged sales tax? should i have registered for a sellers permit or a sole ownership business? I have so many questions that i need answered!
Hey, I am also just as anxious as you are, so I found a video (th-cam.com/video/dPpUn4-JvDQ/w-d-xo.html&ab_channel=KerryEgeler) that might help. But I have a quick question, was it hard to get 5k, and then what did you do with the money? Did you put it on your personal tax or what did you do? It would make me really happy if you could respond since I am a newbie and I have to do this for a school project.
Wow u made 5k in one month ? Did u run ads or was this just of general traffic ?
Does a dropshipping business need any insurances? Nobody talks about it, but when asking google or AI, they highly recommend getting insured in things like general liability, product liability, cyber liability
You don't need it but many people get it to protect their assets. Knock on wood through - I've been doing this over 10 years and have never had any issues where it was needed.
I am 😃 in North Austin.
good to know
tHANK YOU NO ONE EVER TALKS ABOUT THIS.
hello Anthony, I would like to say thank you for clarifying this info for me. do you feel it is better that I start with one or two products that are selling well and then start the shopify store?
Just don't lol
Jk yeah that's a good plan I'm not Anthony and I'm 4 years late
I just got a cease and desist order from one of my products. My question is i found exact similar generic products from china being sold on Amazon? Feels like they are nitpicking me? Any thoughts on this?
If the person/company that send the letter owns the rights to the product I’d remove it sooner rather than later to not cause any big issues down the line.
THANKS!
You're welcome!
How do you handle "Product Recalls"? Are manufacturers legally required to notify you?
Hi Kathy, We've never had to do with that... but yes, I would assume that the suppliers / brands you sell for would notify you.
Question, if my business needs money what is the correct way to put money into the business bank account? Would just a transfer from person bank be ok or do we have to loan it?
You can start by investing your own money into your new business. That is how most of us do it.
Thanks for your video. Can I use pictures with people (adults, kids using the product)...? I am not sure if these people gave permission to be on my supplier or mine webpage. Thanks
If in doubt, you should ask your rep at the supplier.
Hey Anton! I bumped into this video, what are your thoughts on international dropshippers who are based outside of the united states. Would you recommend them to base their company on their country of origin or should they base it in the US. How would you go about tributes to the IRS and dealing with potencial domestic lawsuits when someone based in a completly diffrent country. I think I would get a lot more traction from dropshipping in the US but im international. Any suggestions? thank you
Hi, Verdict741! Anton recommends that dropshippers, regardless of their international location, base their company in the country where they plan to do business. He covers the details of setting up a dropshipping business in his FREE training. You can click here for more info: www.dropshiplifestyle.com/learn/.
- Myra
what about car brands ?
Let's apply same for something else. Let's assume that there are two Disney stores one in UK and the other one in Denmark, and both have same item, but in Denmark there is sale of 20%.
It is illegal for me to offer to buy and ship the product from Denmark to the customer, charging them for the price of the product, and let's say additional 5$ fee for the service I provided by researching the Web and ordering the same item from different store, and I know that both stores have paid their copyright use?
To further say. I will go to Denmark Disney shop which is in Danish language, and my client doesn't speak Danish, so I will place order for him and send the product to him, and in return he will give me $5 because I made an effort for him. He will still get the same item cheaper, and I will earn extra $5. Or I am not allowed to do that?
I don't see why not... people sell stuff like that on eBay all the time. However, I don't sell in E.U. so there may be laws I'm not aware of.
Quick question. If somebody buys a product off of my store and it malfunctions, resulting in an injury, is the liability on me or the supplier?
What are you selling? Pace makers?
@@ludvigbergsaker8745 lmao
@@ludvigbergsaker8745 kitchen knives and razor blades
Good question , ever get an answer?
The serious answer is "AS I UNDERSTAND IT AND I AM NOT AN ATTORNEY" that anyone can sue anyone for anything. Even if the suit gets thrown out each of the parties is going to have significant costs associated with the suit. But my GUESS is that the plaintiff is going to go after the party with the deepest pockets. And again as I understand it that's why a corporation (typically an LLC in the US) is the way to go because it shields the defendant's personal assets against seizure, where as a sole proprietorship or partnership provides no protection. However, it is VITAL that the LLC and the owner's personal assets not be co-mingled, otherwise the LLC's protection may be voided. Any attorneys jump in here please...
Would you still get sued by selling products off of like temu or other websites that seem cheap and they have like knock off products like those “viral” TikTok products? I was looking into starting a business and start selling like those cheap knock off product from like tik tok of something. Could o still get in trouble?
Hi! Anton strongly advises against selling knock-off or counterfeit products. Instead, he emphasizes the importance of focusing on high-ticket niches, which can provide better profitability and legal safety for your business. In his free training, he thoroughly covers how to identify profitable high-ticket niches and source genuine products from reputable suppliers, ensuring legal compliance and long-term success for your dropshipping business. You can join here: www.dropshiplifestyle.com/learn/.
- Myra
Hey Anton, as a completely beginner, thinking to building a store, is it conveniente for me to register it as a business in advance already? I live in Europe (I am italian). Thank you very much!!
Hey AP, I love your country! Are you planning on doing business in the states or in Italy? If in the states, you will need at least an EIN# to get started.
Drop Ship Lifestyle thank you very much for your answer Anton. My situation is a bit of peculiar. I am italian but living in Poland right now. So I would stay in european union. The only problem is that the infos about ecommerce taxation and stuff and very few compared to the knowledge around US. I'm trying to learn before doing any mess..
What type of insurance should I look to get for my store? I sell fashion and accessories.
DJ Stennies .....why u need insurance ur afraid someones going to break into ur online store? Im asking cuz i want to know.
I am form Indonesia
Mistake.need immediate help
HI I am a small ebay seller dropshipper
I never sold products "pj masks"
but got a court order form them
they froze my paypal and i dont have anything now
help me please
what can I do?
Dian Arista Im not sure... but if you do get it back you should never sell any copyrighted products. You need to get approved with different suppliers and brands so that you are authorized to sell their products.
Have a drop shipper, that will not give refund. To customers who purchase from my website. But only exchange for defects.
What should I do? Should I leave the supplier?
Thanks
Yes, that sounds like what I would refer to as a Bronze Supplier. I would ditch them and stick with Silver and Gold suppliers only.
Should ask for permission from the ali express supplier before building a store around the product?
Yh do u?
I have a drop-shipping Baby store, if one of my products causes injury, do I get sued, or the manufacturer? If yes, how do I protect myself?
Just say you’re not liable for injuries
So if I sold a jersey and clearly labeled it as a replica or fake, that would be infringing on the legit manufacturer IP or organization?
Can't do it... regardless of whether or not you say it's a replica or fake.
s there any legal problems with putting the trademark (tm) next to the brand name on the website?
Hello, Awkwrd! Learn more about the legalities of drop shipping by joining Anton's free training today! Here's the link to join: www.dropshiplifestyle.com/learn/.
- Myra
How about a video that clearly explains a how to guide on paying taxes
He is not an accountant. He does not know how you will structure your business. Go visit a CPA..
@@johnpublic75 im not an accountant either so therefore I dont have to worry about taxes for my store DERP
Austin TX?
Okay what if you resell course that was bootlegged somewhere else? Meaning it's not drm protected. Also means I didn't sign any terms and conditions upon downloading the material. How could you make a copyright claim against that?
It would be the same as selling bootlegged versions of a movie you downloaded as a torrent, or selling a stolen car that was stolen by someone else first... you'd be totally liable.
@@dropshiplifestyle Yeah I was just curious because it's also educational material not completely stealing creativity like a movie or song.
Can you still be sued if they are second hand brand products, like from Thrift stores
Selling 2nd hand items is fine, but that's a totally different business model...
Do you have any recommendations for llc for people in europe? In Denmark i need to have 7.000 $ on my account to even make one.
ApS?
Can some one please answer but if I buy it from the actual company will I still get sued because I buy it from the company first
Hi, Relaxd! Learn more about drop shipping by joining Anton's free training today and see how he does it differently! Here's the link to join: www.dropshiplifestyle.com/learn/.
- Myra
Hi thank you for your video, actualy i have a store from 4 months now please i need you to review if its possible
I review a store every other Friday. Feel free to post your store URL under my most recent store review video. Here's the link: th-cam.com/video/ZRKu8eRKYqc/w-d-xo.html
Drop Ship Lifestyle ok thank you because i think there is somthing wrong in checkout because people come to my store clicking in add to card but no sale i want to send you the url but in private can you hide my logo please if you choose to review it in public 😓 thank you
Lethal Zero thank you 😊👌
Lethal Zero yes tried it on ebay.
Can i put genuine cellphones like Huawei or iPhone on my store on dropshipping?
If it is genuine you are OK. If it is a licensed product and modded to violate the license you may not be. You cannot sell Intel engineering samples for example as you cannot own them. You also want to make sure that you are not selling QC rejects that should have been destroyed.
@@matthewmckenzie7687 so Mr. Mathew I can put licensed new geniue products?
How can I start a dropshipin business .
Check out my webinar! It's the perfect starting point :) www.dropshiplifestyle.com/ls/webclass
Stealing other businesses images, ad copy, etc, and posting it up on eBay to drop ship is not a "business", its pathetic. Those who can't do, drop ship
Hello fellow austinite...
so can I not just make a website, find a product, put it on the website for more than I buy it for, and then sell it for that much? instead of getting into all of this stuff
How can I learn dropshipping business?do you teach that.
Hi.
Where we can open LLC company?
You can do it online yourself (just Google how to do it in your state), or you can use a service like LegalZoom. We also help our members set them up for free inside of www.dropshiplifestyle.com/
Someone people sell supreme pet clothes.
If they get big enough they will get sued.
Drop Ship Lifestyle thank you for replying. I stared my store too a week ago and I added this items thinking it was okay.. I’ll delete them. Also I checked out your course but is way out of my budget at the moment I’ll look into in the future:)