Dropshipping

Your legal rights when shopping online 

• You have the right to lodge a consumer complaint or file a claim about a product if it is broken, does not work or does not match the company’s description of it.  

• You have the right of withdrawal and return for 14 days from the date you receive or pick up the item.  

• Companies must clearly inform you of the total price before you make your purchase. You should not be charged extra fees afterwards.  

What is dropshipping? 

Dropshipping is a business model used by some companies that sell goods online. The company does not have its own stock of goods. Therefore your order is forwarded to a supplier, who may be based outside the EU. 

In most cases, it is the company that has sold you the goods that you should for example complain to if something is wrong.

It is common for these types of websites to be promoted on social media. 

How do you recognise if it is a dropshipping situation? 

Sometimes when you buy a product online it is not obvious that you are dealing with a dropshipper. However there are a few things that may indicate that you are shopping from a company that uses dropshipping. Look out for the following: 

Insufficient information on delivery dates 

Check the delivery time before you make your purchase. Usually the supplier is based outside the EU. This is why the delivery may take longer than you expected. The company you purchased the goods from has little control over the delivery time, and in addition the delivery information may be incomplete. 

Unclear address or a residential address 

The address of the company must always be indicated on the website. If the address provided by the company is a residential address, this may be an indication of dropshipping. The supplier’s address must be indicated on the website if returns are to be sent there. 

Spelling errors or very strange translation 

In many cases, there are language misspellings on the website. There are websites where the text has been machine translated into Swedish word-for-word. If you notice mistakes in spelling or sentence structures that are not correct, this may be an indication of dropshipping. 

Is dropshipping legitimate and reputable? 

The concept of dropshipping is not dishonest in itself. But it is good to keep in mind that there are dubious merchants using the dropshipping business model. If you are unsure whether the website you want to buy from is legitimate, there are many things you can do to reduce the risk of being ripped off. 

• Search the web and read what others have to say about the company. Often you can find websites where other customers have left ratings and posted reviews about the company. Don’t just read the customer reviews posted on the company’s own website; critical comments are rarely published there and fake reviews are common. Check if the company has a social media presence or otherwise is discussed in social media. It is usually possible to find reviews and feedback there. 

• Check that there are clear and reliable contact details for the company. There should be a telephone number, postal address and e-mail address, along with the company registration number. If contact information is missing, you should be cautious. If contact information for the company is missing, you cannot check whom you are actually buying from and you may not have contact information in the event a problem arises with the delivery. 

• Always be careful before giving out your credit card details. If you pay by credit card or an invoice, the purchase is covered by the protection afforded in the Swedish Consumer Credit Act. This way, you will have added protection. If you buy on credit, you can contact the credit provider, i.e. the card issuer (bank) or the company you received the invoice from, and ask for a refund if there is a problem. Paying in after receiving the product acts as a safeguard for you if, for example, the goods are not delivered on time or are defective. 

You must be given clear information about the price 

When you purchase from a company that does not have its own stock of goods, your order is forwarded to a supplier. If the supplier is outside the EU, it is not uncommon for there to be extra charges that you will need to pay. 

The price of the goods you buy must be accurate and clear. Extra charges and other costs should always be indicated by the company before you make the purchase. One example of an additional cost is customs duty when a supplier from outside the EU sends the goods directly to you. 

The total price of your purchase should always be clearly stated before you make the purchase. You should not need to leave the order page to find the correct price information. It is not acceptable for the information to be provided by means of a link to another website or hidden in the company’s terms and conditions of purchase. If the company has not clearly informed you of the total price for the purchase before you complete the purchase, you are not liable for any additional costs. 

If you have purchased a product online and received a confirmation of the purchase, the basic rule is that you are entitled to buy the product at the price stated in the confirmation. The company may not demand payment for additional costs from you afterwards. 

You have the right to rescind your purchase 

If you are shopping via a distance/off-premises sale, for example online, you generally have a 14-day right of withdrawal from your purchase. These rules apply both in Sweden and within the EU. 

Notify the company that you have changed your mind and are rescinding the purchase 

You need to notify the company that you are cancelling your purchase within 14 days from the day after you received or picked up the goods. 

To have documentation that you have notified the company that you have changed your mind and rescinded the purchase, it is advisable to do so in writing. If the company claims that you have not notified them that you have changed your mind and rescinded the purchase, you will have the proof you need, such as an e-mail note, to show that you have notified the company that you have changed your mind and rescinded the purchase within the statutory time limit. 

If you need the contact details for the company, check your order confirmation or look on the company’s website in the terms and conditions of the contract. 

Send the item(s) back to the company 

If the goods are at a postal service point being held for pickup, you need to collect them, even if you have already withdrawn. If you don’t pick up the goods, you risk paying a fee that many pick-up locations charge for uncollected goods. This means you will need to collect the item and then send it back to the company you purchased it from. If the company you purchased it from tells you that do not need to collect the goods, it is important that you receive this information in writing, or for example that it is stated in the company’s terms and conditions of sale. 

The company must then refund what you paid 

Once you notify the company that you have changed your mind and rescinded the purchase, the company has 14 days to refund your money to you. A prerequisite for a refund is that the company has received the goods back, or they have accept that you can show that you have already sent them back. 

Further information about the right of withdrawal 

You have the right to lodge a complaint about faults

If there is an original default in the product you have the right to lodge a complaint. You can insist that the fault should be rectified or to receive a new product. If the fault is essential, you might have the right to revoke the purchase and receive a refund.

You have at least two years of statutory warranty rights when you shop from a company within the EU, Norway, Iceland, or the United Kingdom. Some countries have longer periods. In Sweden, you have a 3-year warranty right.

If you have purchased an item from a company outside of the EU, you might not be protected by EU consumer law.

If the company targets Swedish consumers, Swedish legislation should apply. Sometimes it can be hard to know if a website targets Swedish consumers or not. Here are some examples that may indicate that the company targets Swedish consumers:

• The company's website is in Swedish.

• The company allows you to pay in Swedish kronor.

• Phone number with country code for the company.

• The letters after the last dot in the web address are ‘se’.

Who should you lodge your complaint to?

You should lodge your complaint to the company that you purchased your products from, your contractual partner. In the case of dropshipping, it is usually the company that you purchased your products from that are your contractual partner. This means that it is rarely the supplier that is your contractual partner. But there might be exceptions and sometimes an assessment needs to be made in your individual case.

If you are missing contact information to the company, you might find the information in your order confirmation or in the terms and conditions on the company’s website.

Further information about lodging a consumer complaint about a faulty product 

If the delivery of your product late 

The goods are considered to be overdue if one of the following situations occurs: 

• You did not receive the product within the promised time. The promised time is the time stated when you make the purchase, for example, in the purchase conditions or in the order confirmation. 

• There is no promised or agreed delivery time, but at least 30 days have passed since the purchase and the product had not been delivered. 

Write to the company and demand delivery 

You can start with demanding that the company keeps its end of the bargain and delivers your goods. Contact the company in writing and demand that they deliver the delayed product. When you demand delivery, you need to give the company a reasonable extension of time for delivery. An extension of time for delivery is a final date for when the product must be delivered and is intended to give the company a reasonable chance to deliver the product. 

If you need the contact details for the company, check your order confirmation or look on the company’s website in the terms and conditions of the contract. 

At the same time, you have the possibility to claim compensation for costs you incur as a result of the item not being delivered by the promised date. You can only claim compensation for costs or financial losses that you can prove, for example with receipts. 

Notify them you are rescinding the purchase if you do not receive the goods 

Alternatively, you can insist on a rescission. If you have given the company a reasonable extension of time and the date passes without you receiving the goods, you can contact the company notify them you are rescinding the purchase. A rescission means that the purchase is annulled. If you rescind, you are no longer liable for payment and the company is no longer required to deliver the goods. 

If you have already paid for the goods, a rescission means that you can insist on a refund from the company. 

Further information about past due delivery of goods 

Do I need to pay customs duty? 

If you purchase an item from a company outside of the EU, you need to pay VAT. You might also need to pay customs duty. This also applies when the company you have a contract with has forwarded your order to a supplier outside the EU.

The amount of customs duty varies for different goods, depending upon declared value of the goods and what classification the goods fall into. The basic rule is that you are obligated to pay customs duty if the declared value of the goods exceeds SEK 1,600.

You are always required to pay VAT. For most goods, the VAT rate is 25%.

The Swedish Customs Service describes any charges that may apply when you shop online from a vendor outside of the EU.

If you do not pay the customs duty, there is a risk that you will not receive the item.

The company must inform you of any additional charges and costs, before you make the purchase. If the company has not informed you of the total price of the purchase before the transaction is made, you are not legally bound to pay these costs. You have the option of paying the customs duty under protest and subsequently claiming reimbursement of the customs duty paid from the company.

Further information about customs duties on the Swedish Customs website 

Is the product safe?

CE marking

Many products must be CE marked in order to be sold in the EU. The fact that the product is CE marked means that the manufacturer certifies that the product meets the EU's requirements for health, safety and the environment. Examples of goods that must be CE marked:

• toys

• electric home equipment

• life jackets

• helmets

• personal protective equipment

Hazardous substances

If you buy goods from a company outside the EU, it can be difficult to get information about what the product contains and whether the product contains any dangerous substance.

On the other hand, have you bought the product from a company within the EU? In this case, you always have the right to find out whether the article contains any of the substances of very high concern included on the EU Candidate List.

If your product is not safe

If you have bought an item that is not safe, you should not use it. It may cause damage.

If the product does not meet the requirements that exist, you should lodge a complaint to the company you bought the product from.

How to complain against a defective product

Report deficiencies

Swedish Chemicals Agency (Kemi)

You can inform the Swedish Chemicals Agency bout goods (e.g. toys, clothes, shoes or electronics) that cause health problems or that you suspect contain dangerous substances. You can also inform them of electronics or toys that do not have CE marking.

Contact the Swedish Chemicals Agency

The Swedish Consumer Agency

You can report products with inadequate product safety to us at the Swedish Consumer Agency.

Make a complaint at the Swedish Consumer Agency's website

Elsäkerhetsverket

Do you have an electrical product that is dangerous, does not meet the requirements or that you feel interferes with other equipment? Then you can report the product to the National Electrical Safety Board.

Contact Elsäkerhetsverket

Request the assistance of ARN if you can’t arrive at a mutually agreed solution with the company 

If you and the company cannot reach a mutually agreed solution, you can file a request for assistance with the National Board for Consumer Disputes (ARN).

ARN will assess your case and make a recommendation on how to resolve the dispute. Most companies follow ARN’s recommendations.

A normal processing time is approximately six months. 

What does it cost to file a complaint with ARN?

It costs SEK 150 to file a complaint with ARN. When you submit your complaint, you can request that the company compensates you for the cost if ARN makes a recommendation in your favor.

Requirements for ARN to consider your case

• The company has either rejected your claims or has not responded within a reasonable time.

• The amount you and the company are in dispute about is SEK 500 or more. You cannot include the application fee to ARN.

• You file the complaint within one year from the first time you complained to the company.

Submit a complaint on ARN's website

Submit a complaint to the Swedish Consumer Agency 

If you think opinion that the company’s marketing is false, inaccurate or otherwise misleading, you can draw attention to it by submitting a complaint to the Swedish Consumer Agency. A complaint filed with the Swedish Consumer Agency does not mean that you will obtain assistance in your particular case, but it may benefit other consumers in the future by bringing relevant consumer problems to the attention of the Swedish Consumer Agency. 

Submit a complaint to the Swedish Consumer Agency