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. 

The supplier sends the products you ordered directly to you on behalf of the company you purchased the goods from. The company you buy from does not deal with the packaging or the shipping. The company usually only manages the website and the marketing of the goods. It is common for these types of websites to be promoted on social media. 

With whom are you contracting with? 

In most cases, the company providing the website is your contractual partner. Your contractual partner is the one you have contact with and in the event of any problems will be making claims with. It is rarely the supplier outside the EU who is your contractual partner. However there are exceptions and sometimes an assessment needs to be made in your individual situation. 

If your contractual partner is a company based outside the EU 

If your contractual partner is a company based outside the EU, you may not be protected by EU consumer legislation rules. Nor is it certain that the goods will comply with EU product safety requirements. However if the company is marketing to or targeting Swedish consumers, Swedish law usually applies. An example of a company targeting Swedish consumers might be that the company’s website is in Swedish or that you can pay in Swedish crowns. 

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, malfunctions, or other issues 

You always have a right for at least two years to lodge a complaint to enforce the statutory guarantee if your purchase is from a company in the EU, Norway, Iceland or the UK. In some countries, such as Sweden, consumers have a longer period in which to enforce a statutory guarantee. In Sweden, the law gives consumers a guarantee provided by statute lasting for three years after the purchase. 

The statutory guarantee consumers have means that if there is something faulty with what you have purchased, you can get the product repaired or replaced. If the fault or malfunction is substantial or cannot be rectified, you may be entitled to a refund of the amount you paid. 

What is considered to be a fault or malfunction? 

For a product to be considered faulty, the fault or malfunction must have existed from the beginning. An original defect is a fault or malfunction that was already present in the goods when you purchased them or received them. 

For example, an original defect could be that the product is malfunctioning or is broken. It may also be that the product has been delivered in a different colour or size than the one you ordered. 

Document the fault or malfunction 

When you notice a fault or malfunction, it is important to document it. You need to be able to show the company what is wrong, and documentation is important if you and the company cannot reach a mutually agreed solution. So remember to save all the supporting documentation. 

What can you insist on from the company? 

It is important that you notify the company within two months of detecting the fault or malfunction. If you wait longer than that, you risk losing your right to make a claim against the company.

To start with you are entitled to have the fault or malfunction rectified or to receive a new product. The company must rectify the fault or send a new product at no cost to you. 

Alternatively, you can receive a reduction in price. The reduction in price must be equivalent to the defect, for example, what it would cost you to have the defect repaired by another company. If the product has a cosmetic blemish that does not affect its functionality, a reduction in price may be possible rather than the blemish being repaired. There are no definite set rules for such reductions; what is reasonable must be decided on a case-by-case basis between the parties. 

Thirdly, there is the option to rescind the purchase. A rescission means that the purchase is rescinded, i.e. the company takes the product back and any money you paid is returned to you. If the goods are to be returned, the company must pay the freight. If you have paid for the goods, you should get your money back in the same way as you paid. 

Complain to the company 

To complain about the fault, you should start by contacting the company from which you purchased the goods. There are no requirements on how to lodge a claim, but we recommend that you contact the company in writing. In this way, you can show that you have lodged a claim, and that you have done so in a timely manner. You can also send an e-mail to the company. Remember to save a copy of the e-mail message as supporting evidence. If the company only has a customer contact form on its website, you should take a screenshot or a photograph of what you have written. That way you have documentation that you lodged a consumer complaint and when. 

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. 

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? 

The company must correctly and clearly present the price of the goods, as well as 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. However if you are informed that you are obligated to pay customs duty on the goods and do not do so, there is a risk that you will not receive the goods. You have the option of paying the customs duty under protest and subsequently claiming reimbursement of the customs duty paid from the company. 

The amount of customs duty varies for different goods, depending upon declared value of the goods and what classification the goods falls 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. 

Further information about customs duties on the Swedish Customs website 

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. There is no charge for having your case heard by ARN. The average processing time is about 6 months. 

Requirements for the National Board for Consumer Disputes to be able to review your case 

• You have filed a complaint within one year from the date you first notified the company of the problem. 

• The amount you and the company are in dispute about is SEK 500 or more (different value thresholds apply for different fields). 

• The company has rejected your requests in whole or in part, or it has failed to respond to you. 

• If you have not received a response from the company, 30 days must have passed before you can file a complaint with ARN. If you submit your complaint earlier, it will be automatically rejected. 

When you submit your complaint to ARN, you will need to describe the situation and exactly what you want from the company. You have the possibility to submit supporting documents such as e-mail conversations, pictures, contracts and other evidence. 

However, even if Swedish law applies, it is not certain that a foreign company will comply with ARN’s recommendations in a dispute. So it’s advisable to think about exactly where you’re buying from. 

Further information about ARN on its 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