When you do dropshipping, your supplier is responsible for delivering your orders.
How does it work?
Although the delivery is handled by your supplier, it is essential that you add a delivery method on your store. This delivery method will only allow you to inform your customers about the delivery times and any costs to be expected. Here you have to add the “Another carrier” delivery method, that you can configure according to the delivery method you use with your supplier. Note that delivery does not matter with your products, you have to configure it manually.
⚠️ It is unnecessary to add delivery methods such as La Poste, Mondial Relay, etc. if your supplier is responsible for the delivery.
Example of creating a delivery method for AliExpress, based on the AliExpress Standard Shipping delivery method.
Go to Configuration > Manage my delivery options.
The preparation time is taken into account in the delivery time. Note that by default, it is calculated on working days (Monday to Friday). Saturday and Sunday must be included if you want the calculation to be carried out taking into account all the days of the week.
You can add your delivery method and select "Another carrier” delivery:
Title: You must name your delivery method here. This is the title that your customers will see when they choose the delivery. For example, you can write: Standard delivery.
Description: You will need to give more details here about your delivery method.
For example: Home delivery within 15 working days
Country: Here you must select the countries to which the orders can be sent.
Method of calculation: Here you can select the option of your choice on the calculation methods of your delivery costs.
💡 Depending on the seller, delivery times can be relatively long, especially on AliExpress. It may be worth making your delivery costs free. For this, you can include the delivery costs when calculating your purchase price. Example:
Take this product on AliExpress:
To calculate your sale price, you need to calculate your purchase price. On AliExpress, it is important to be based on the original price of the product and not the discounted price. This helps prevent a loss of margin later if the offer is no longer valid. For this product, we can add the original price and the delivery costs, i.e. 2.40 + 1.48 = 3.88. Based here on a purchase price of 3.88 €, you can calculate your sale price and offer a free delivery method.
Timeframes: Here you must indicate the delivery times according to the delivery offered by your supplier. As with the preparation times, by default, we count in working days.
If the products you import have different delivery times (some 15 - 20 days, others 30 - 45 days), plan a specific delivery method for each one.
What weight do I enter on the product pages?
Here you need to use the weight indicated on the AliExpress product pages when possible. If the product page does not indicate a weight, then enter a fictitious weight that approximates it.
How is VAT managed?
VAT management in dropshipping has 3 scenarios:
- Dropshipping within the European Union:
If you work with suppliers based in the European Union (BigBuy, BrandsDistribution, BusyX Pro, Webdrop), you will not have to do anything. The VAT will already be paid by your supplier.
- Dropshipping with AliExpress:
If you work with AliExpress, the platform's French website already includes the price of products with VAT. So you’ll not have to do anything more here either.
- Dropshipping with non-EU suppliers
If you work with non-Dropizi suppliers who are based outside the EU, we recommend that you contact your suppliers directly to find out more about how they manage VAT.
☝️ The particularity of self-employed status
Since 1 July 2021, VAT is payable on all shipments imported from third countries destined for the European Union, whatever their value. This new law therefore obliges you to pay VAT when purchasing products outside Europe, but it does not oblige you to sell your products with VAT.
If you operate under self-employed status and you buy your products from a French or European company, when you purchase you will pay VAT, but your customer will not pay it.
If you buy your products from a non-EU company, the operation will be the same, but the amount of VAT will be "separated" from the purchase price (which will by default be indicated excl. tax by your supplier). VAT will therefore not be automatically included in the price you pay to your supplier. You will have to declare it to the tax authorities (👉 Find out more).
This declaration is mandatory, and if it is not done by the retailer, the customs authorities will be entitled to claim the unpaid VAT from the recipient of the product (i.e. your customer).
💬 Don’t hesitate to contact your Business Coaches if you have any questions!