How to Start Dropshipping on Shopify: Steps and Legal Checks
To start dropshipping on Shopify, pick a niche you know, find a supplier through a Shopify-recommended app or a wholesaler you have vetted, import the products, set prices that cover every cost, publish clear shipping and refund policies, and place test orders before you take real ones. The steps are quick, and the legal side takes the most care. As the seller, you are the retailer, so product safety, refunds, delivery promises and, for EU customers, VAT are your responsibility.
The process and the legal points come from Shopify’s Help Center pages on what dropshipping is, the fulfillment process, recommended dropshipping apps and dropshipping compliance, read on October 23, 2026. None of it is legal advice.
How dropshipping works on Shopify
You sell a product you don’t stock. When a customer orders, you buy the item from a third-party supplier, who ships it straight to the customer. In Shopify’s supply-chain terms, you are the retailer, and your supplier should be a wholesaler or a manufacturer. Buying from another retailer means paying their markup on top of yours; Shopify says a supplier that sells to the public with “wholesale pricing” is likely another dropshipper selling at inflated rates.
Wholesalers usually have much lower minimums than manufacturers. Shopify’s example is a manufacturer asking for 500 or 1,000 mugs where a wholesaler sells single items or 10 per order, which is why most small stores start with wholesalers. Know how your supplier ships, too: a wholesaler can process orders fast and then pick the slowest, cheapest carrier, and that decides the delivery date you can promise.
Ten steps to launch
- Pick a niche you can curate. Shopify’s advice for reselling is to use knowledge of an industry or a customer group, or strength in marketing. Our guide to dropshipping niches covers how to choose.
- Choose how you’ll source. Shopify recommends Shopify Collective (for US merchants, products from other Shopify brands with synced details, prices and inventory), Dropcommerce: US Dropshipping, Dropship: EU & US Dropshipping and Syncee. App-based suppliers usually don’t ask for business documents; wholesalers outside the App Store usually want you to apply for a wholesale account.
- Vet the supplier. No monthly fee to buy, no “wholesale” prices for the public, test orders to time processing and delivery. The full checklist is in how to vet a dropshipping supplier.
- Import a small range. Start with the products you’d buy yourself and can describe well, then add more once orders come in.
- Rewrite the product pages. Every store that imports the product gets the same supplier description. Add your own description, real measurements and your own photos where you can get samples.
- Price from the full cost. Supplier price, the shipping the supplier charges you, payment fees and ad cost per order all come out of the price. For EU customers, the price shown must include taxes and delivery costs.
- Set shipping rates and delivery promises from the supplier’s real processing and transit times; dropshipping shipping rates covers the setup.
- Publish your policies. Shopify’s Terms of Service require public processing and shipping information, and a current, accurate refund policy (details below).
- Place test orders to your own address, from each supplier, and time them from order to delivery.
- Launch to a small audience first, and check the first real orders end to end before spending on ads.
App choice for step 2 is compared in best dropshipping apps for Shopify.
The legal checks
Shopify’s compliance page treats you as the retailer of every product you dropship, wherever it ships from. These are the checks it lists, grouped:
Product safety and recalls. Before selling a product, review the product safety laws for each place you sell, confirm the product has the licenses, certifications, markings, warnings and instructions needed there, with warnings and instructions in the official language, and check for recalls. You could be held liable for products that don’t meet safety standards where they are shipped. If a product you sell is recalled, removing it from your store is your job, and you might have to notify buyers.
Shipping and processing times. Publish processing and shipping information, and show shipping times and extra fees, including import or customs charges, before checkout. If an order is delayed, tell the customer. Shopify calls it good practice to say that a third party ships the product and where it ships from.
Refunds. Publish a current refund policy with the return window, the return address, who pays for returns, a note that refund timing can depend on where the customer lives, and contact details. EEA customers usually have 14 days after delivery to return an online purchase for a full refund, and your policy must tell them about their rights. Shopify says it might act against a store without an accurate refund policy, up to termination.
Prices for imported goods. State that imported products might be subject to customs clearance. For EEA customers, show the total price including taxes and delivery.
EU VAT and customs. Because the import value (what you pay the supplier) is usually lower than the retail price, selling into the EU from a non-EU supplier can create extra VAT liabilities. Shopify’s page lists recent changes:
| Change | From | What it means |
|---|---|---|
| France: €2 customs handling fee | March 1, 2026 | Per item, not per parcel, on low-value imports under the simplified procedure |
| France: VAT guidance on imported distance sales | March 2026 | When the import value differs from the sale price, as in almost every dropshipping order, the seller of goods imported and delivered within France must register for French VAT; IOSS simplifies orders up to €150 |
| EU: €150 duty exemption being removed | July 1, 2026 | A €3 flat-rate customs duty per item on small parcels as an interim step |
The Import One-Stop Shop (IOSS) lets you collect VAT at checkout on orders up to €150 and file one monthly return, so customers don’t pay unexpected taxes on delivery. Set it up in Settings > Taxes and Duties > European Union.
If you’re outside the EEA but target its customers, for example with ads in a local language or a domain in an EEA country, these laws might apply to you. Ask a lawyer before you enter a new market.
Before the first real order
Run one order through the whole chain: buy from your store, see the order reach the supplier, track it, receive it, and return it under your own policy. Fix whatever breaks before you spend money on ads. Delivery and returns topics continue in the shipping and returns hub.
FAQ
Can I start dropshipping on Shopify without a business registration? App-based suppliers in the Shopify App Store usually don’t ask for business documents or approval, while wholesalers outside the App Store usually want you to apply for a wholesale account. Tax and business registration depend on where you live and sell.
Which apps does Shopify recommend for dropshipping? Shopify lists Shopify Collective (for US merchants), Dropcommerce: US Dropshipping, Dropship: EU & US Dropshipping and Syncee, and says the list isn’t exhaustive.
Am I responsible if a dropshipped product is unsafe? You can be held liable. Shopify’s compliance page says you must follow the laws that apply to a retailer and could be held liable for products that don’t meet safety standards where they are shipped.
Do I need IOSS to dropship to the EU? Shopify suggests considering IOSS, which lets you collect VAT at checkout on orders up to €150 and file one monthly return. Without it, customers might pay VAT and fees on delivery, and you might need VAT registrations in individual countries.