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Dropshipping Liability?

Discussion in 'Black Hat SEO' started by whiteblackseo, Apr 3, 2017.

  1. whiteblackseo

    whiteblackseo Jr. VIP Jr. VIP

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    There is this niche I want to get into, but the objects are sharp. I wanted to buy from aliexpress, store in a local fulfillment center and ship. Will it work, or will I get sued?
     
  2. Lunaaa

    Lunaaa Jr. VIP Jr. VIP

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    My suggestion is to start selling it. Add some warning labels or something.

    If you don't sell many, the chances of getting sued are very low.

    I suggest to do it, and after making $600 profit and then get incorporated (costs about $600 where you are). If you don't make more than $600, you probably didn't sell alot and you probably won't get sued. Worst case scenario if you get incorporated and they sue you, is they sue the company's assets . But they can't come after your personal assets

    Also if you get incorporated, you pay less tax


    Anyways I don't think you can get sued for that. Probably best to ask a lawyer.
     
  3. nerdlabco

    nerdlabco Newbie

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    There is always the possibility to be sued, but without more information it's kind of difficult to gauge the probability. If you're in a litigious country/state then you might want to form an LLC if for nothing more than peace of mind. There are also methods for taking less responsibility for the delivery of your goods like having Aliexpress deliver it to your customers instead of having a fulfillment center handle it for even more cost. If you're talking about a product such as razors then chances are the manufacturer would be the target of the complaint. Anything can be potentially dangerous; however, you can mitigate risk by choosing a less dangerous niche.
     
  4. whiteblackseo

    whiteblackseo Jr. VIP Jr. VIP

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    I don't think we have LLCs in Canada, as Marko said we only have corporations/sole proprietorship. I'll see if I can ask a lawyer.
     
  5. nerdlabco

    nerdlabco Newbie

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    It would be a corporation in Canada. Obviously they wouldn't get much from a one man dropship operation bc your personal assets would be protected. Doing your due diligence is key and talking to a lawyer is expensive especially if your just starting out but if you can get a free consultation and form a relationship with an attorney you might need down the road then go for it. Basically, all it entails is filing some paperwork, opening a bank account, and paying some fees. Just keep all your personal shit separate from your business accounts.