I want to start a dropshipping business. I am a resident of India with a registered OPC Pvt. Ltd. I want to use Shopify for creating an e-commerce store which sells ceramic products (vase, plates, mugs etc) to customers exclusively outside India (US/UK, Australia etc) via dropshipping. Shopify provides app integrations for apps like Modalyst, Zendrop, Spocket. All of them have these products but they are also sourcing these products primarily from China. So how should I proceed? Is it legal since ALiExpress and Alibaba are banned in India? If it is legal and I can do it, what are other legal things I should take care of or get done?
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You have already registered yourself as a OPC and therefore a gst registration is also necessary.
Yes you can sell ceramic products via your website even outside India.
Gst registration and contact your CA who will help you tide over tax compliance issues.
Dropshipping is a business model that allows you to sell products online without having to own or operate the physical location where those products are stored and processed. This means you can start an ecommerce store and sell a wide range of products without handling inventory and fulfillment.
In a dropshipping business model, you promote products and provide an online storefront. When a customer places an order, you send the order to the dropshipper and inform customers the products are on the way.
The rest of the physical fulfillment process is out of your hands. In some dropshipping agreements, you may also handle customer service, while the dropshipping service manages the physical goods and fulfillment.
The exact logistics of dropshipping depend on your arrangement
The dropshipping process starts with you. As the seller of record (SoR), you’re the individual identified as selling the product to the end consumer. You set the price, record the purchase as revenue, and assume responsibility for the sales tax on a particular sale. Even when a third party stocks and ships the items, you’re the seller of record because you own the products before they ship to the customer.
In a typical product supply chain, wholesalers buy from manufacturers and sell to retailers at a slight markup. They function as middlemen; generally, they do not sell to the end consumers but may provide dropshipping services to retailers.
Determine which dropshipping providers could be right for you based on your business model and fulfillment requirements, among other factors.
With dropshipping, you’re still responsible for your reputation and keeping customers happy. If things go wrong with the fulfillment process, managing customer support might be up to you.
dropshipping is "a retail fulfillment method that allows entrepreneurs to start an online business and sell products to their buyers without actually stocking the items themselves.
it ls legal in India
3) you would be liable for accepting, processing, returning processes of your products.
4) it is legal .it is also the reason why many huge platforms such as Amazon, Shopify, Chinabrands, and more are all doing dropshipping in India.
Dear client dropshipping is legal. It's a legitimate order fulfillment method that thousands of business owners use worldwide. However, you need to be careful not to do business with fishy suppliers who illegally use another company's intellectual property.
Ok. Thank you all for the information. Based on the 4 answers above, I conclude that dropshipping is legal and I can do it. I can sell products from a supplier to customers. My other question was, since I am an Indian resident and India banned AliExpress/Alibaba, If I sell products from these platforms to customers, is it legal? The customers are outside of India but I am in India. And secondly. Let's assume I ditch these Chinese suppliers and go for US/EU suppliers and sell in those countries itself, then, do I have to register in those countries as business or I can operate from my current registered firm.
While into a legal trading business you have to observe the law of the land, if Indian laws have restricted certain entities within Indian territory, you cannot do any such business through such forbidden agencies on their behalf.
For your second question, you are doing an online business, in that case you may be flouting any country's laws or regulations, you have to ensure that there is no infringement of other's rights in the course of your business, besides you have to make sure that your business activities do not violate the laws of the country where you enter into business transactions.
Dont sell products from Ali baba /Ali express
2) take other suppliers
2)for instance if you sell products on Amazon
You must follow all Amazon seller policies and agreements.
You must be the seller of record (also known as authorized seller) of the products listed on Amazon.
3)
To do dropshipping in the US, sellers must have a USA Reseller Permit for e-store owners based outside the USA
Dropshippers whose stores based outside the USA cannot qualify for credit with US-based suppliers
If you are based in India and selling products to customers outside of India, you may need to register your business in the country where your customers are located, depending on local laws and regulations. Operating a business in a foreign country typically requires registering your business with the local authorities, obtaining any necessary licenses and permits, and following local tax laws.
It is recommended that you consult with a local attorney or tax professional familiar with the laws and regulations in the countries where you plan to do business to determine your legal requirements.
In general, it is best to have a clear understanding of the legal and tax implications of operating a business in a foreign country before starting the process to avoid any potential legal or financial issues down the road.
You can operate from our current registered firm
