 Our question of the day is, is dropshipping legal? Let's find out. Dropshipping is an easy way to make money. But is it all too good to be true? Is reselling a product you don't own legal? The answer is yes. Dropshipping is a completely legal business model. At the end of the day, all it is is a fulfillment method. When a dropshipper gets an order from a customer, they just have their supplier ship the product directly to that customer. It's the middleman method. And plenty of retail stores use this method, mainly because it's faster, cheaper, and overall the least risky fulfillment method in comparison to investing in inventory. Overall, dropshipping is legal, but the key is to avoid any illegal pitfalls that you might bump into along the way. So let's go over those pitfalls. Number one, not paying taxes. Dropshipping is just like any other business. So just because you're an online store doesn't mean you don't have to pay taxes. That means your sales tax and your income tax. Most selling platforms will pay your sales tax automatically, but it's always good to double check. And as for income taxes, that's usually up to you to file yourself at the end of each year. Number two, sharing customer information. Privacy rules exist for dropshippers too. Most countries require that you keep all customer details private, especially payment info. To make things easier for yourself, it's actually standard practice to write a privacy policy and have it available for your customers to read. Number three, selling copyrighted products. This is a super common mistake I see a lot of dropshippers make. As a rule, just avoid selling any products you know are copyrighted. That means big brands like Nike or Apple. But you can also check the eBay Vero page, which has a full list of products you can't sell without special permission. Link will be in the description below. If you sell a copyrighted product, you can have your listing removed, account suspended, or even face legal action. So if you're asking me, it's just not worth it. Number four is selling counterfeit products. Selling knockoffs of popular brands is illegal, even if you didn't know it was. So do your due diligence, make sure whatever you're selling isn't a knockoff in that you're using reliable suppliers. If you need any good suggestions, check out our video on the top dropshipping suppliers. Link will be in the description below. Number five is selling age restricted and forbidden products. This can have even harsher consequences than a copyright violation. Most countries have strict laws when it comes to selling age restricted products to minors. Just as an example, in the U.S., selling alcohol to a minor is considered a misdemeanor that could lead to a fine or even potential jail time. Even when it comes to selling to adults, it can get complicated too. For example, in most cases, you usually need a special license to sell tobacco, weapons, or certain medical supplies. And I don't know about you, but jail doesn't sound like such a great time to me, so it's probably best to avoid these categories altogether. Number six, price gouging. Usually during a natural disaster or global pandemic, we see major supply shortages. For instance, at the beginning of COVID, we saw a shortage in hand sanitizer and for some odd reason, toilet paper. So when supply is down, that's usually a great opportunity to up your prices and earn a bit more than usual. But if you overdo it, this can actually be considered price gouging. It all depends on the level of the price increase and your local laws. Still, you'll definitely want to avoid price gouging since it's considered illegal. But in most cases, when it is legal, I'm a big advocate of raising prices when you can because it's a good strategy to increase profits and sales. So there you have it. I hope this video answers your question. Dropshipping is in fact completely legal and many platforms even promote it, like Wix, Amazon and Facebook. If you found this video helpful, make sure to hit that like button and if you have any other questions about dropshipping, drop them down in the comments and we'll be happy to answer them. Thanks so much for watching and I'll see you next time.