Dropshipping Dropshipper and Reseller Ultimate 3

Question 1

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

Accepted Answer

Promptly, with an option to cancel for a refund

Answer

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?

Accepted Answer

To buy inventory tax-free for resale

Answer

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:

Accepted Answer

Trademark/IP infringement and account suspension

Answer

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?

Accepted Answer

Detailed size charts and measurement guides

Answer

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

Question 5

What does 'order fulfillment lead time' refer to?

Accepted Answer

Time from order placement to delivery

Answer

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

Dropshipping Practice Test