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Many prospective entrepreneurs often question the legitimacy of drop shipping. The answer is a resounding yes; it is legal, provided you stick to reputable suppliers. Selling counterfeit or unauthorized merchandise can lead to serious legal repercussions, including fraud liability. Therefore, it's imperative to partner with officially licensed distributors to ensure compliance with legal standards.
Business Registration
In the United States, drop shippers must possess a seller’s permit and potentially a business license, depending on their locality. Registering your drop shipping business is crucial, as it's treated just like any other commercial enterprise.