Question Dropshipping return policy - doable setup with IBC + UK ?

[wheelspin]

Hello,

just from a theoretical point of view for dropshipping and some returns I may encounter. In EU customers have the right to withdraw from contract and return the goods for 14 days if buying from a EU registered company.

How do you handle such returns? Do you let it return to your supplier?

Who would be the effective seller, if an offshore company (for example Seychelles or Belize or some non blacklisted offshore juristiction) would launch a store AND a UK Ltd. registered on behalf (with EMI+ Paypal/ 2CO/ Worldpay) handles the payment?

Between which parties exist the contract? Customer and UK Ltd or Customer and Offshore? In the first case, EU return policy is mandatory for UK Ltd, in second not.

 

[polonieth]

If you are processing payments via the UK limited, then customers in Europe will be covered by the EU Consumer Rights Directive.

If you are trading outside the EU with and processing payments with something outside the EU then the laws of the country you are trading from usually apply. If you are specifically targeting EU consumers then it's a grey area. Ideally, you would offer some similar rights, but it's clearly going to be difficult for a customer to enforce if it came down to it. But you'll likely get stung with chargebacks / negative reviews anyway, so you can't really win.

What type of product is it? Depends on size, where it's being sent from etc as to what the best option would be for returns etc.

 

[wheelspin]

Thanks. It don't sell any products yet. Just wondering how, if I would step in, handling returns efficiently without much headache.

 

[polonieth]

Thanks. It don't sell any products yet. Just wondering how, if I would step in, handling returns efficiently without much headache.

Many drop shippers will handle returns themselves, and assuming the product is resaleable, just ship it themselves a new order comes in for the same product.

 

[tsu458]

1. The 14 days return right is something you got as a consumer living in the EU. It's not related to jurisdiction of the seller. But buyers can confirm that they waive that right while buying. I don't know the english wording but something like "I confirm that I waive my right to return the item within 14 days", a lawyer can word that correctly. Should be done with a checkbox I think.

2. New EU customs laws will come into effect on 01.07.2021. Right now, you can send something to germany for example, and if it's worth below 22€ customs will ignore it. If your business is based on importing stuff for customers this way at scale, it's not legal and essentially tax fraud. I know no one cares and I think that's ok right now. But next year, customs will charge even if it's worth 1€, so every dropshipping customer would have to go to customs to pick it up. However with a EORI-number you could prepay the tax and customs fee for the buyer I think. But then you are on the radar for more compliance, a lot of product safety laws and so on, very strict at least in germany, austria, switzerland.

Some more infos:
https://ec.europa.eu/taxation_customs/business/vat/modernising-vat-cross-border-ecommerce_enhttps://www.avalara.com/vatlive/en/...-22-import-exemption--import-oss-returns.html