Is High-Ticket Drop Shipping Legal?

Hey, guys. Trevor here with eCommerce Paradise and today's live video is going to be all about is high-ticket drop shipping legal. Now this is a question a lot of people ask, so I thought I'd approach it with a six step guide to understanding the legalities behind high-ticket drop shipping. First of all, a little bit of housekeeping. If this is your first time watching this channel, I definitely recommend that you subscribe. Hit that subscribe button below, so you'll be notified for all of our content that's released. Hit the bell icon if you want to get notifications on your smartphone and your email.

Also if you guys would please leave a comment below and let me know what your thoughts are on this video, that would be greatly appreciated. Any of your needs, any of your obstacles you are having to get started with high-ticket drop shipping, I can help. Leave a comment below and let me know and hit that like button. With that, let's get into the video. My first point to make about is high-ticket drop shipping is that drop shipping is simply a fulfillment method, right? It's a fulfillment method where you have your suppliers, ship the product directly to your customer. It's really simple and easy. Okay?

This fulfillment method is a very simple method and is used by a lot of different people. Big businesses out there like Wayfair.com, Hayneedle.com, Amazon.com, all these big websites, what they do is that they don't have to inventory the products themselves. Amazon has huge fulfillment centers now, but in the very beginning they did a lot of drop shipping. Wayfair.com, they inventoried their own brands, but they don't inventory all the other brands that they have. The deal with high-ticket drop shipping is you'll be dealing with a lot of different brands that have big heavy products like bath tubs or sofas or outdoor dining sets, electric fireplaces, these kinds of things.

Big heavy products require freight shipping and special caring and warehousing. It doesn't really make sense to me moving these products around so much. Usually what happens is they get imported from China and then they stay in one fulfillment center warehouse in the United States and that's that brand's fulfillment center. Then that brand either ships it to a retail store front to be on display, to be sold to a customer that walks in, or they just ship it directly to the person who buys it through eCommerce. Us as online retailers we take care of the sales and the marketing to get those transactions and then the supplier who ships that to customers.

That's how it works. It's perfectly legal 100%. The only issue with this, right, is that some people don't understand that you will need to be an authorized dealer for the brand you sell. Okay? Classic drop shipping, which is more like price arbitrage which is where you go to like a retailer like Walmart.com or Amazon.com or any online retailer out there, Overstock.com is another great example, and you pull any product off that website that's around 100 bucks or 50 bucks or whatever and then you mark it up double and post it on Amazon or eBay and sell it, and then you have that retailer ship it to your customer. You're not an authorized dealer for that brand, right?

Usually you want to do that on products that are cheaper because then if there's an issue with the product, you're not going to be the one the customer has to go to. The issue is is that when you sell something when you're not an authorized dealer, you're basically removing the customer's ability to have a warranty with that brand's products. A lot of warranty will say you can only get the warranty if you bought it directly from an authorized dealer. Okay? When you're doing that, you're negating that fact. Just understand that you're putting yourself in a precarious position when you do that kind of business model.

That's why they always recommend you sell cheaper products because it's not going to happen that often. When it does happen in that business model, you can just refund them their money if it's 30-40 bucks, whatever. You have tons of other orders and profits to make up for that expense, right? Just understand we are doing high-ticket drop shipping. You need to be an authorized dealer. I do not recommend you sell anything online that's high-ticket without first becoming an authorized dealer for that brand.

To become an authorized dealer, all you have to do is give them a call or shoot them an email and say, "Hey, I would like to become an authorized dealer," and they'll send you their dealer application form. You fill it up and send it back, and now you're an authorized dealer. You have an agreement with them, a contract. This contract will include all of your shipping terms, all of your return policy terms, your warranty terms, things that they expect from you as far as marketing goes, as far as customer service goes.

Then you know what to expect from them when you go to run your business and fulfill sales and stuff like that. Okay, guys? That's pretty much the legalities behind it. Other than that, high-ticket drop shipping is just a business model based on the price of the product that's sold, the platform in which you're selling it, and the fulfillment method in which you're fulfilling those orders, right? High-ticket drop shipping is perfectly legal. Just understand that fact about being an authorized dealer and always stick to that, right?

Do the most that you can for building a relationship with the brands that you work with because they'll be able to give you better deals, better discounts, faster shipping, all these types of things as you grow and make more sales for them, as you make more content and stuff like that as well. Guys, it is now September, right? It is the end of summer. What's happening is all the big brands are ramping up for the holiday sale season. Okay? Holiday sale season is somewhere around end of October it starts. People get ramped up for Black Friday. Black Friday is huge. Cyber Monday is huge.

Then there's the entire first two or three weeks of December that's huge for Christmas as well. Now is the time to start getting ready, guys, building out your stores, scaling, getting more suppliers onboard in the next two to three weeks, 30 days, so that you can start really optimizing your site, getting everything into the ads, getting all your marketing going, so that you can just capitalize the heck out of the Black Friday and Christmas sale season. Hey, Emily. Thanks for being on the video. All right. Woo. You made it. Thanks so much for watching. Appreciate you being here.

Emily, I'm so excited for you because you have this awesome store and you already have a lot of suppliers. You're just ready to go out. I can think for you is just get more suppliers and add more products and get those ads going and do the little things in your website that help optimize conversions. Like adding reviews and adding question and answers. Anything else, any questions you ever get from your customers, add those into the product descriptions. Things like that will help optimize your site in the long run. You can do lots more like adding videos, adding unique pictures and stuff like that, and trying to improve your site load time.

There's all sorts of little tweaks you can make here and there, but if you just focus on the basis of scaling, you'll do perfectly fine. I don't want to detract from the subject too much of legalities in drop shipping, but I think that's just kind of the number one point. The last thing I want to say is don't ever scam people, guys. If you're going to have an order that goes wrong or something like that and the person they just want to return it and they're having a buyer's remorse, at the end of the day, just consider the cost of doing business and just take the product, send it to the supplier, and refund them in full.

You might be out 100 bucks, 200 bucks, whatever it happens to be, but you're going to have tons more business and profits that's going to pay for that in the long run. What that will do if you try to scam a customer out of their money is that they're going to be remorseful. They're going to go online and post a lot of bad reviews for your business and stuff like that. You don't want to deal with that, right? Definitely just take care of customers. If anything, the fact that you took care of that customer will probably result in a testimonial where the customer talks about how it went wrong, but you took care of them, and they're going to love that.

Then future customers will see that and be like, "Oh, that's great. This is a company that has a company culture where if something goes wrong, they'll take care of me." That's what matters a lot more than anything else to people. Just to know that the company culture is one that will take care of them in the end, so they want to actually order from you. That's the other thing guys is yes, drop shipping is perfectly legal, but it's very gray area when it comes to like return policies and shipping and stuff like that. Just make sure you have set really good policies on your website that are clear, but also very kind.

You take care of your customers because your customers are your lifeblood to your business. It what brings you the money. That's the person that you should be most focused on is your customers. Communicate with your customers. That's number one. That's key. Always have clear, good, kind communication with your customers, and then also take care of them. Maybe send them a free gift or just wow them with your marketing and be really nice to them and stuff like that. Follow-up with them and get them to come back more. Ask them what their biggest pain points are and biggest struggles are. Get to know them a little bit better.

You'll get really good content ideas from that. You'll get ideas for more product lines you could possibly carry on your store. There's all these great ways to scale beyond that. Definitely guys, if you're thinking about getting started with drop shipping and you're not sure about the legalities behind it, I hope this video answered all that. If you are already started with drop shipping, I'm sure you already understand that it's perfectly legal. Yeah. You guys, thank you so much for tuning in.

If you guys are interested in starting drop shipping, check out my niches list, eCommerceParadise.com/99niches, or you can just go to eCommerceParadise.com and click the link at the top to download that niches list. I also have a free mini course at eCommerceParadise.com/dss, stands for drop ship secrets. Definitely get in there. If you guys are interested in getting notified when the masterclass releases, again go to eCommerceParadise.com/masterclass and then get on the list. There's a little opt-in form there with a button and you can click it and add your name and your email, and I'll send you an email as soon as it relaunches in a month or two.

I'm going through that right now. I'm making tons of updated content. Adding lots of bonus materials and stuff like that. I'm really excited about the future of the course. I have lots of students like Emily that are making huge progression forward with their businesses. It's just really exciting to see what's going to go down in the next three, four months with the holiday season. I'm excited. Everybody else out there in the masterclass is excited. Get in there guys and have fun. Make some money. Okay? That's what it's all about. See you guys in the next video. Take care.

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