Dropshipper and Reseller Ultimate Flashcards

Under FTC rules, when must a dropshipper notify a customer of a shipping delay beyond the stated time?

Answer: Promptly, with an option to cancel for a refund

The FTC Mail Order Rule requires prompt notice and a cancellation option when promised shipping times can't be met.

What is the purpose of a reseller's permit (resale certificate) in the US?

Answer: To buy inventory tax-free for resale

A resale certificate lets a seller purchase goods without paying sales tax because tax is collected at final sale.

A product photo on AliExpress shows a branded logo. Listing it risks:

Answer: Trademark/IP infringement and account suspension

Selling counterfeit or trademark-protected goods exposes the seller to legal action and platform bans.

Which approach best reduces high return rates on apparel dropshipping?

Answer: Detailed size charts and measurement guides

Accurate sizing information sets correct expectations and cuts fit-related returns.

What does 'order fulfillment lead time' refer to?

Answer: Time from order placement to delivery

Lead time spans the full window between a customer ordering and receiving the product.

A reseller on Amazon repeatedly receives 'inauthentic item' complaints. The best corrective action is to:

Answer: Source from authorized suppliers and keep invoices

Authorized sourcing with verifiable invoices is what Amazon requires to resolve authenticity complaints.

Why is collecting and managing customer email a strategic asset for a dropshipper?

Answer: It enables repeat sales independent of ad platforms

An owned email list drives repeat revenue without paying for each new ad impression.