Yo it's getting serious. It's going down
with Shopify dropshipping. a friend of
mine who's also a lawyer he sends me
industry updates from time to time and
he let me know that more and more people
or should I say more and more Shopify
stores are getting sued around the world
and on top of that governments around
the world as well I sign in a crackdown
on drop shipping more vigorously oh you
know you're asking to get lit up
somebody wants to get delivered so in
this video today we'll be going over
together a well known Australian dropshippingstore that was recently sued
and how you can avoid setting up an
illegitimate drop shipping store that
goes well beyond just copyright
infringement what is up asses welcome
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Time so today's topic is rather
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video off with a more positive note so I
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of each other so moving back to today's
question is a surefire option being
illegal here on out well I'm gonna
answer that let's jump into my laptop to
discuss this article that put my lawyer
my friend sent me the other day
detailing how exactly this Australian or
this well-known Australian drop shipping
business was sued and this is very
important for you to understand because
I want to discuss why governments around
the world why authorities around the
world are cracking down on drop shipping
so let's get into my laptop so here we
are on the exact article that I want to
discuss with you and this was sent to me
the other day the first few paragraphs
by the way a kind of pointless or what
is drop shipping advantages and
disadvantages of drop shipping now I
hope you do understand what is drop
shipping already and fYI the reasons why
this this section is in this article is
because obviously this company legal
vision wants to rank on Google for
dropshipping the term but this is the
juicy stuff let me zoom in on this as
direct is the company that we're talking
about so the facts as direct was an
online retailer of electronic goods that
operated using a drop shipping model or
customers paid for the orders before
receiving their products when a customer
pay for an order a direct will pass it
on to its supplies now that's pretty
common sense that's drop shipping a
whole and we should all know this here's
the juicy stuff
Oz direct had an agreement with its
suppliers that if it exceeded its credit
limit suppliers were under no obligation
to fulfill the orders now despite this I
was direct submitted several orders
while it was in credit hold this is the
important part
resulting in customers not receiving the
orders or not receiving them in a
reasonable timeframe after making
payments and I want to discuss this in a
second but now let's talk about the
legal decision at the time as Direct
accepted the orders it new or oughtn't
have known that it would not be able to
deliver the orders within a reasonable
time because it was
crédit hold furthermore oz director made
various misleading and deceptive
statements about customers rights to
refunds now that's really interesting so
essentially what they've done here is
contravene the CE CE a which is an act
here in Australia therefore as long as
retailers can deliver the goods
customers pay for there's nothing
illegal about drop shipping what is
illegal is accepting payments for
products you do not reasonably intend to
supply on making misleading and to set
this statements about customers rights
and refunds so the reason why a thority
czar cracking down on trop shipping is
because it's a business model with such
low barriers to entry almost anyone can
start and unfortunately it's attracting
an unethical crowd and unethical crowd
that's willing to make a very quick buck
off the expense of the customers that's
why drop shipping stores are being shut
down there's legal action taking against
bigger drop shipping stores at the
moment and there's a lot of red flags
across the board and I know this because
I receive a lot of questions that relate
to legalities dodgy practices of drop
shipping so I'm gonna get straight into
these questions that I get asked because
they're frequently asked questions and
it's quite important for you to
understand the answers as well so the
first common question that I get around
drop shipping in legality is do I need
to tell the supply that I am drop
shipping is this illegal if I don't now
the short answer is no it's not a legal
but should you do it totally yes you
should tell you supplier that you are
drop shipping there's a lot of perks of
telling your supply that you are drop
shipping your product to a location
other than your own and you can simply
do this via the checkout page of
Aliexpress or even better you can do
this with Oba low in the back end the
settings page and just insert that
automated a message that you know
automatically processes once you set out
to fulfill that product my default
message to supplies is generally along
the lines of please do not include tax
receipts or invoices in this order I am
drop shipping this order to a different
it's as simple as that now I do go more
in depth for certain orders and but
that's another different pro tip for a
different video but message as simple as
this allows the supplier to understand
that hey you are drop shipping and
frankly they are used to drop shippers
especially if you're using Aliexpress
and and this will allow you to drop ship
and white label that service so really
you want to just establish credibility
and transparency with both the customer
and the supplier you don't want to be
unethical in any sort of way or form by
basically lying to the supplier and is
it legal to not tell you supply yeah
sure it is but should you do it I don't
think so
the second question a very common
question is can I sell counterfeit
products and the answer is a very
astounding note if you're taking
intellectual property in any shape or
form whether that be a design that is
linked to a very popular sneaker or if
that's literally a product that has a
famous logo that is copyrighted already
then you need to stay very clear of that
product and very clear of that supplier
as well because that is completely
illegal I'm not even gonna bother
elaborating on this specific question
because the answer is an astounding no
and look I'm gonna save you a lot of
money here and tell you that if you're
thinking about selling copyrighted
products then just stop right there
just stop and move on to genuine
products products that you can create
yourself that a white label because
there is a lot of money to be made in
that space and it is completely legal so
go down the right ethical path the third
question is can I get away with not
providing a returns or refund policy and
now I believe this is based on the
country that you drop shipping from but
overall no you cannot it is illegal at
least in Australia not to provide a
returns or refunds policy or exchange
pro
and you do need to provide some sort of
policy and and I highly recommend
providing customers a robust policy
where they have a peace of mind this is
very beneficial from many points of view
so a lot of people I find tend to think
that they're gonna lose money with their
refunds or exchange policy but that
really isn't the case yes you are going
to get Tigers that come in buy your
product and then ask for a refund for
any stupid reason but the only capital
wants 2% of people really what a refunds
and exchange policy does is establish a
very credible business and it actually
boosts conversion rate because they've
got peace of mind they know that's your
a legitimate business you're not here to
scam people which you shouldn't be in
the first place and but that's the
that's the point really you want to
provide them with peace of mind so
they're gonna make that purchase and
they're gonna come back as a return
customer on top of that there is SEO
benefits and I mentioned this in a
previous video but I mentioned it again
of having a return policy at the footer
there actually is a dual SEO benefits
COO who does give that a green tick they
do realize that you have a return policy
it's a must need for a shopping campaign
a Google Shopping campaign but if you're
interested in that video then go check
it out and it's all about organic and
how to set up your store in a way that
is compatible with Google so to wrap it
up drop shipping is a completely legal
genuine and authentic business model if
you're doing it right it is a business
model at the end of the day but in light
of drop shipping --zz new popularity and
it's bad reputation a lot of authorities
are cracking down on it and keeping a
close eye on drop shippers including
shall fire itself but all it's doing is
stopping those dodgy drop shippers who
were destined to fail anyway sooner or
later it's very simple guys if you look
at drop shipping as a legitimate
business bottle which it is and a chance
to create a brand with the customers at
the forefront then you've got a very
good chance at creating a five six seven
digit revenue business
in the drop shipping niche so there we
have it guys I hope you or dropship as
legally as possible and be ethical about
your business that is very important
because if you're on an ethical you're
going to be weeded out sooner or later
and it's just not worth it so guys I
hope you enjoyed this video if you did
give it a thumbs up as always and if you
haven't already subscribed and subscribe
to this channel there's videos coming
out every single Wednesdays 4 p.m.
Eastern Standard Time but as always guys
thanks for watching and keep one
hustling
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