Dropshipping Dropshipper and Reseller Ultimate 3 — Questions and Answers
Question 1: Under FTC rules, when must a dropshipper notify a customer of a shipping delay beyond the stated time?
- Promptly, with an option to cancel for a refund (Correct answer)
- Only after 90 days
- Never, if the item eventually ships
- Only if the customer emails first
Correct 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.
Question 2: What is the purpose of a reseller's permit (resale certificate) in the US?
- To buy inventory tax-free for resale (Correct answer)
- To exempt all income from federal tax
- To trademark a brand name
- To waive shipping fees
Correct 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.
Question 3: A product photo on AliExpress shows a branded logo. Listing it risks:
- Trademark/IP infringement and account suspension (Correct answer)
- Higher conversion rates
- Better organic SEO
- Lower return rates
Correct answer: Trademark/IP infringement and account suspension
Selling counterfeit or trademark-protected goods exposes the seller to legal action and platform bans.
Question 4: Which approach best reduces high return rates on apparel dropshipping?
- Detailed size charts and measurement guides (Correct answer)
- Removing the return policy
- Raising prices
- Disabling reviews
Correct answer: Detailed size charts and measurement guides
Accurate sizing information sets correct expectations and cuts fit-related returns.
Question 5: What does 'order fulfillment lead time' refer to?
- Time from order placement to delivery (Correct answer)
- Time to write a product description
- Time to launch an ad campaign
- Time to register a domain
Correct answer: Time from order placement to delivery
Lead time spans the full window between a customer ordering and receiving the product.
Question 6: A reseller on Amazon repeatedly receives 'inauthentic item' complaints. The best corrective action is to:
- Source from authorized suppliers and keep invoices (Correct answer)
- Lower the price further
- Delete the listing and relist
- Ask buyers to remove feedback
Correct answer: Source from authorized suppliers and keep invoices
Authorized sourcing with verifiable invoices is what Amazon requires to resolve authenticity complaints.
Question 7: Why is collecting and managing customer email a strategic asset for a dropshipper?
- It enables repeat sales independent of ad platforms (Correct answer)
- It eliminates the need for suppliers
- It removes sales tax obligations
- It guarantees lower shipping costs
Correct answer: It enables repeat sales independent of ad platforms
An owned email list drives repeat revenue without paying for each new ad impression.
Dropshipping Dropshipper and Reseller Ultimate 3
Under FTC rules, when must a dropshipper notify a customer of a shipping delay beyond the stated time?