Fundamentals Flashcards
7 cards from real Dropshipping practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamentals flashcards as text
Why must US dropshippers be aware of sales tax obligations?
Answer: They may owe tax based on nexus in certain states
US dropshippers may have to collect and remit sales tax where they have nexus.
What is 'nexus' in US e-commerce taxation?
Answer: A connection to a state that creates a tax obligation
Nexus is a sufficient business connection to a state requiring sales tax collection.
Why is selling trademarked or branded products risky in dropshipping?
Answer: It can lead to legal action and account bans
Selling unauthorized branded goods can trigger lawsuits and platform suspensions.
What is a key benefit of providing excellent customer service in dropshipping?
Answer: It reduces chargebacks and builds repeat business
Good customer service lowers disputes and encourages customers to return.
Why should a dropshipper order product samples from a supplier?
Answer: To verify quality and shipping experience firsthand
Ordering samples lets you confirm product quality and delivery before selling.
What is 'branding' in the context of a dropshipping store?
Answer: Creating a distinct identity and trust around your store
Branding builds a recognizable, trustworthy identity that differentiates your store.
Why is tracking key metrics like conversion rate important?
Answer: It shows how well your store turns visitors into buyers
Conversion rate reveals how effectively your store converts traffic into sales.