Dropshipping retailers are online stores that use a logistics model where the online retailer receives the order, but the products are shipped to the customer by a wholesaler or directly from the manufacturer - with no further involvement from the retailer. Dropshipping is a legitimate and increasingly common logistics model that can save retailers a lot of time and money.
At the same time, the use of dropshipping by less reputable online retailers, presumably attracted by the lure of fast money in e-commerce, has brought dropshipping into the spotlight of consumer protection. Dropshipping is constantly being promoted on social media as a unique opportunity to make a lot of money quickly. People, some of whom have no experience in e-commerce, are then enrolled in expensive coaching sessions. These sessions sell the idea of setting up and running a functioning dropshipping business as a simple undertaking. Consumer protection regulations and ensuring adequate customer service are often ignored. As a result, consumer complaints are on the rise, such as:
- problems with exercising the right of withdrawal
- delivery of inferior goods
- long delivery times
- unexpected customs charges
- denial of legal rights such as warranty
- poor service or lack of availability
Test orders are carried out to gain in-depth knowledge of dropshippers in Austria and Germany. All suppliers' terms and conditions, legal notices, cancellation policies, shipping information and delivery times were analysed for any anomalies. In addition, each order was cancelled to evaluate the entire cancellation process. The results were analysed in a study.