Who Is Legally Responsible in Dropshipping? Supplier vs. Retailer Liability Explained [2026]

The short answer

Whether the package comes from a warehouse in Rotterdam or directly from Shenzhen: legally, you as the webshop owner are the seller. And that has major consequences.

Why is the retailer legally responsible and not the supplier?

Dropshipping is completely legal in the Netherlands and throughout the EU — there is no debate about that. But as the Dutch government explicitly states:
“As a dropshipper, you are responsible for, among other things, the safety and delivery of products.”

The legal principle is simple:

Whoever concludes the agreement bears the liability.

The consumer buys through your webshop, pays on your checkout page, and sees your brand name in the confirmation email. The supplier is invisible to the consumer. Legally, that is exactly what matters: the supplier has no contractual relationship with the end customer.

The Dutch Authority for Consumers & Markets (ACM) strictly enforces this approach. Dropshipper Wearpods, for example, was publicly reprimanded for failing to comply with consumer regulations. According to the Dutch government, fines for violations can reach nearly €1 million per violation.

The 5 legal responsibilities of a dropshipper

1. Product safety (GPSR — since December 13, 2024)

The new EU General Product Safety Regulation (Regulation 2023/988) has applied since December 13, 2024, and is one of the biggest changes in 20 years of EU product safety law. Read the official explanation from the European Commission here.

What this means for you as a dropshipper:

· Every product you sell must have a “Responsible Person” within the EU (manufacturer, importer, or authorized representative).
· The product must contain traceability information: batch number, manufacturer details, contact address.
· In the event of an unsafe product, you are obligated to cooperate in recalls and inform consumers.
· Selling products from outside the EU without an appointed Responsible Person? Then you are in violation.

The Dutch Food and Consumer Product Safety Authority (NVWA) can impose fines reaching hundreds of thousands of euros. For example, if you sell flammable USB chargers or toys containing toxic substances, you — not your supplier in China — are the party held liable. These legal obligations are part of a broader framework: discover everything EU legislation 2026 means for dropshippers in terms of compliance.

2. Statutory warranty (minimum 2 years)

According to European consumer law, the buyer is entitled to a proper product that meets reasonable expectations. In the Netherlands, the statutory warranty has a minimum of 2 years, and in some cases longer (depending on the expected lifespan).

Important: you cannot hide behind your supplier. If the supplier refuses to take back or replace the defective product, you must solve it yourself. Refund, repair, or replacement — the choice largely lies with the consumer.

3. Right of withdrawal (14 days)

Every consumer in the EU has a 14-day cooling-off period after receiving the product, without having to provide a reason. You must:

· Clearly inform the consumer in advance about this right (otherwise the period extends to 12 months);
· Provide the model withdrawal form;
· Refund the full purchase amount within 14 days after cancellation;
· Handle the return yourself — you may not redirect the consumer to your (foreign) supplier.

This last point is exactly where the ACM often catches dropshippers. Redirecting customers to AliExpress for returns? Immediate fine.

4. Delivery time and fulfillment

Even though the supplier ships the package: you are responsible for timely delivery. If no delivery period has been agreed upon, the legal period of 30 days applies. After that, the consumer can terminate the purchase and reclaim their money — while you may already have paid the supplier for the package.

5. VAT, customs, and privacy (GDPR)

Since July 2021, the VAT exemption for packages under €22 has been abolished. VAT is charged on all imports. Selling internationally? Then registration in other EU countries may be mandatory through the One-Stop Shop (OSS) scheme.

In addition, the GDPR (General Data Protection Regulation) fully applies. Customer data processed through your webshop — name, address, phone number, payment details — falls under your responsibility, even if forwarded to your supplier. A data breach at your supplier is legally also your problem.

What is the supplier actually responsible for?

The supplier is not free from responsibility. Under the new EU Product Liability Directive (PLD) and the GPSR, the manufacturer or importer carries significant obligations:

· Product safety at the source: the design and production must be safe.
· Risk analysis and technical documentation: must be stored for at least 10 years.
· CE marking and correct labeling where applicable.
· Cooperation in recalls when a product proves unsafe.
· Liability for product damage towards the end user (product liability under Book 6 of the Dutch Civil Code, articles 185–193).

This means that as a dropshipper, you may recover product liability damages from your supplier — provided this is contractually arranged properly. And that is exactly where many beginner dropshippers fail.

The difference between “responsible” and “recoverable”

Many entrepreneurs misunderstand this distinction:

Who	Responsible towards the consumer?	Recoverable by dropshipper?
Retailer (dropshipper)	Yes, always	n/a
Supplier / manufacturer	No (no contract with customer)	Yes, if contractually established
Online marketplace	Limited (information obligations under GPSR)	Depends

Conclusion: you must first satisfy the customer, and only afterward can you attempt to recover damages from your supplier — if your contracts are properly arranged.

The 5 biggest legal risks in traditional dropshipping

Based on lawsuits, ACM fines, and case law, these are the most common pitfalls:

1. Unreliable suppliers outside the EU who fail to comply with GPSR, lack CE marking, or sell counterfeit products.
2. Unclear return agreements causing you to pay twice: once to the consumer and once to the supplier. The best way to avoid these costly disputes is through smart product selection from the very start, before returns even occur.
3. VAT misunderstandings and customs issues that ultimately affect the customer.
4. Intellectual property infringement (counterfeit products) — brand owners may hold you liable for substantial damages.
5. GDPR violations because customer data is transferred insecurely to third parties.

How do you legally protect yourself as a dropshipper?

Step 1: Work exclusively with reliable, verified suppliers

A cheap supplier without transparency becomes expensive in the long run. A reliable EU supplier that complies with GPSR and CE requirements is your best legal insurance. Choosing a reliable supplier is your first legal protection: discover the 7 key criteria for choosing the right dropshipping supplier and avoid legal risks.

Step 2: Put agreements in writing

A dropshipping agreement should at least regulate:

· Product quality and warranty agreements
· Delivery times and liability in case of delays
· Return procedures and who bears the costs
· Intellectual property guarantees (no counterfeits)
· VAT and customs responsibilities
· Penalty clauses for non-compliance

Step 3: Make sure your webshop is legally compliant

Clear terms and conditions, privacy policy, return policy, cookie banner compliant with GDPR and ePrivacy, and clear contact information (no hidden imprint).

Step 4: Take out business liability insurance

As advised by the Dutch government’s business platform Ondernemersplein: insure yourself against liability. An unsafe product can cause injury — and claims may be substantial.

How Droppery removes legal risks for dropshippers

At Droppery, we deliberately build a fundamentally different dropshipping model from the traditional “AliExpress-to-Shopify” route. Since 2021, our mission has been: professionalize, automate, and legally secure dropshipping for the European market.

Why dropshippers using Droppery are better legally protected:

🇪🇺 Only verified European suppliers
All 70+ brands and wholesalers connected to our platform are EU-based. This means: GPSR-compliant, CE-marked, compliant with EU safety standards. No customs surprises, no counterfeit risks.

📋 Transparent, written agreements
Through the Droppery platform, you work based on clear conditions between supplier and retailer — no loose email agreements or Google Translate contracts.

⚡ Real-time product data and inventory
Because we fully automate synchronization of product information, inventory, and orders, you avoid selling unavailable products — one of the main causes of consumer complaints and ACM reports. This automation goes well beyond compliance: discover what fully automated dropshipping really looks like and how it eliminates human errors.

🚚 Short European delivery times
No waiting 4 weeks for a package from Asia. Customers receive their orders within regular EU delivery times, eliminating the 30-day delivery risk.

🤝 Selective model with mutual approval
Our premium suppliers work with an approval process. This means both you and the supplier know who you are working with — a foundation for sustainable and legally transparent partnerships.

Want to know which EU suppliers fit your niche? Explore our platform here or read more about how Droppery modernizes dropshipping.

Frequently Asked Questions (FAQ)

Is dropshipping legal in the Netherlands?

Yes, dropshipping is completely legal in the Netherlands and throughout the EU. However, you must comply with all standard laws and regulations applicable to webshops: consumer law, product safety (GPSR), GDPR, VAT rules, and fair trading practices.

Can I as a dropshipper be held liable for an unsafe product from my supplier?

Yes. As the retailer, you are primarily liable towards the consumer. Youou can then try to recover damages from your supplier, but only if this has been properly arranged contractually and if the supplier is legally recoverable (which is difficult with foreign suppliers).

What is the “Responsible Person” under the GPSR?

The Responsible Person is a natural or legal person within the EU responsible for compliance with product safety regulations. This can be the manufacturer, importer, authorized representative, or fulfillment service provider. Selling products without an appointed Responsible Person? Since December 13, 2024, you are in violation.

May I redirect customers to my supplier for returns?

No. This is one of the most common reasons for ACM fines. As the seller, you must handle the right of withdrawal yourself, take back the product yourself, and refund within 14 days.

How high can an ACM fine be for a dropshipper?

Fines for violating consumer regulations can amount to nearly €1 million per violation, according to official information from the Dutch government .

What is the difference between dropshipping via an Asian supplier and via Droppery?

With Asian suppliers, you are practically unprotected legally: long delivery times, unclear product safety, lack of GPSR compliance, customs problems for the customer. Through Droppery, you work exclusively with verified EU suppliers offering fast delivery times and legally compliant products — drastically reducing legal risks.

Conclusion: liability is not a detail — it is your business

Anyone who thinks dropshipping means “getting rich quickly without responsibility” will sooner or later face reality. With the introduction of the GPSR, stricter ACM enforcement, and higher fines, 2026 is the year amateurs will be filtered out.

The winners are dropshippers who take things seriously: reliable EU suppliers, legally solid contracts, transparent webshops, and automation that prevents mistakes.

That is exactly what Droppery was built for. We connect retailers across Europe with verified brands and wholesalers, so you can focus on marketing and growth — while we ensure the foundation (data, inventory, orders, suppliers) is correct.

👉 Ready to approach dropshipping professionally? Start today at droppery.io and discover why hundreds of European retailers already trust us.

Sources and further reading

· Dutch Government: Dropshipping for entrepreneurs
· Ondernemersplein: Dropshipping checklist
· European Commission: EU General Product Safety Regulation (GPSR)
· Droppery: About us and our mission
· Droppery: How we modernize dropshipping

This article is informational in nature and does not constitute legal advice. For specific situations, consult a specialized legal professional or attorney.