#1 TikTok Ads Spy Tool

A Better Way to Make TikTok Ads Dropshipping & TikTok For Business

  • Find TikTok winning products & TikTok dropshipping ads.
  • Analyze TikTok advertisers
  • Get the Latest TikTok Shop Data.
Try It Free

How To Not Get SUED Dropshipping With Shopify

Published on: December 6 2022 by Shri Kanase

How To Not Get SUED Dropshipping With Shopify

How To Not Get SUED Dropshipping With Shopify

yo what is going on everybody shri
kanasa here so how to
not get sued when drop shipping with
shopify now getting sued is one of the
most biggest fears
a lot of shopify dropshippers have
usually in the beginning when they don't
really even have a store up and running
and it is simply not a bad thing because
getting sued when drop shipping with
shopify
could lead to a lot of issues such as
having to deal with lawyers having to go
to court
and all sorts of things which somebody
doesn't really sign up for when they
sign up for shopify dropship one thing a
lot of people don't really understand
is that when it comes to getting sued if
you follow just a few specific steps and
guidelines it is very hard to actually
get sued by someone
but of course it is also important that
you actually follow them and not just
put up any random product on your
shopify store to prevent facing further
problems but by the end of this video
you're gonna know exactly what causes a
lot of shopify dropshippers to get sued
in the first place
and how to avoid getting sued at all but
without wasting any more time
let's just jump right into it so the
first thing you'll have to do in order
to actually avoid getting sued at
all is just gently tap that like button
down below for the youtube algorithm but
once you have tapped the like button
down below
let's start off by toking about exactly
the specific reasons
why you actually can't even get sued in
the first place so first things first
one specific reason which is actually
one of the biggest reasons why
a lot of people get sued when
dropshipping with shopify and that is
simply because
of a defective product now to give you
guys an example of what i mean by this
exactly
let's pretend for example that you're
selling chairs on your shopify store
and you're sourcing all of these chairs
from aliexpress however there's one
specific chair which starts selling
really really well
and within 20 to 30 days the chairs
start getting delivered to their
customers
however one of the specific chairs in
one of the packages actually has a
problem with one of the legs
and because of that when the customer
goes to sit on that chair
the leg suddenly breaks all of a sudden
and the customer falls down and breaks
their neck this is an extreme example
but it is something that could
potentially happen
and could be the reason why you end up
getting sued so one of the most
important things you want to understand
is that defective product could lead to
a lawsuit very very easily because
it simply results in a user getting
injured or harmed in any way possible by
the product and this could be simply
done due to a manufacturing issue where
whatever factory the product was getting
made in forgot to thoroughly check the
product and this resulted in this
defective piece
when the customer sues somebody it is
not going to be the factory in china it
is going to be directly you because you
are the person that actually sold the
chair
to this customer and this is why it's so
important to make sure you're following
these specific guidelines which i'll be
mentioning later on in the video
to ensure that you don't really end up
selling these defective products
one of the easiest ways to know whether
a product on aliexpress or the seller
selling that product is defective is by
just looking at the reviews
available for that given product that
should very easily let you know
whether the product is any or good or
not but this is again one of the most
common ways that a lot of people end up
getting sued
simply because the product ended up
harming the user in any way possible but
this brings me to my next point which is
not having enough warnings or
instructions regarding the product and
this basically causes a misuse of the
product
which could lead to life-threatening
issues maybe the person gets
hurt in the process to give you guys an
example for this kind of situation
let's say you're selling a hair cream
for hair regrowth but the package that
the product comes in
doesn't have any types of instructions
and you also fail to provide any types
of instructions
the product is supposed to be applied
only two times on the hair
but the customer ends up applying it 10
times and they end up losing all of the
hair
this could again lead to a lawsuit for
your shopify store and you personally
because
you failed to provide any types of
instructions and you are the seller
not the factory that produce the product
for you so again this means that you
will be the one getting in trouble you
would have to face all the consequences
related to lawsuits and getting sued
some of the most common consequences a
lot of people face when it comes to
getting sued is that they end up having
to shut down their shopify store fully
or in some cases the other party is
understanding they may simply have to
just
take down the product and that's the end
of that however some people do like to
take it a bit further because
just because you take down a product
after a notike is filed against that
product because
maybe you took that product from someone
else and copied their images as well or
maybe
it's a defective product or was a
product without any warnings or
instructions
you are not fully free from the lawsuit
even though you have taken the product
down now it has still been sold
and to that customer as well whoever had
issues with the product so that means
you will still get sued even if you take
down the product which is why
it is so important to not end up in a
situation like that
in the first place but the third and
most common thing why so many people end
up in lawsuits with their products is
because
the product itself had a very very bad
design now what do i mean by this
exactly well
for example if you buy uv sunglasses and
the sunglasses don't provide any type of
uv protection
obviously that's not a good design
product that means it's not going to
perform its functions
and the customer who purchased that
product has the ability to file a
lawsuit or just sue you
because of that so basically a product
that does not perform the function it
was designed to do
can fall under this category that means
people can sue you for this
another example is basically you selling
eye drops that you put inside your eyes
that end up not helping at all
or rather even damaging the person's
eyes that also means that the product
itself was
not designed properly and it did not do
its functions which is why
it ended up harming the customer just
like it would with a defective product
so these are some of the biggest reasons
why people end up getting sued in the
first place with shopify drop shipping
and again
as i already mentioned these things have
big consequences
often it's not as easy as just shutting
down the shopify store or just taking
another product as well if there were a
lot of orders done for this product and
even multiple people start taking
objections that's when you could land in
some serious trouble
which is of course what we don't want as
drop but the fourth and most common
thing that a lot of people also face
getting lawsuits over is selling
trademark or copyrighted products now i
have made
a lot of videos on product research on
my channel in a lot of those videos i
also mentioned
how you should avoid using these
trademarked or copyrighted products or
how to even know whether they're
trademarked
or copyrighted basically if you want to
sell any types of trademark or
copyrighted products
you need to have a reseller's license
and most dropshippers do not even know
what a reseller license is
which means that you want to stay 10
feet away from all kinds of products
which have a brand name associated with
it and i'll be going over more
in detail into this very shortly but
exactly how do you deal with all of
these things and how do you make sure
that you can continue drop shipping the
right way without getting sued so the
first thing
you'll have to actually do is first of
all focus on the aliexpress supplier
more than even the product because
a lot of aliexpress suppliers and a lot
of suppliers in general from china
do engage in copyright infringement
activities and do often create products
which they should not be creating the
main reason behind that is because
the laws over there are not so strict
when it comes to these kinds of things
and you will be the one getting in
trouble if you do end up selling
products that a lot of these aliexpress
suppliers do sell
what i've personally notiked is that
those aliexpress suppliers with over
a 93 positive rating often don't engage
in such activities they often take the
right way
to sell their products and this could
save you from a lot of trouble so that's
why i always recommend that you look at
a supplier
and make sure that they have 93 positive
feedback
or more before even deciding whether to
list their product
on your store or not if you really want
to sell a specific product and the
supplier is not that great when it comes
to the positive ratings
just find another supplier watch one of
my other videos on how to source
products from amazon and ebay and do
that rather than using that supplier
because
down the road it will cost you heavily
if the supplier turns out to be a fraud
supplier and sells you copyrighted or
those products with
defects or issues with them but this
does not mean that you should completely
avoid looking at the product ratings
themselves because
with product ratings i want to be only
selling products with a rating of four
stars
or higher because anything lower and
usually this could mean that the product
is damaged or defective or the supplier
is not taking good care
when packaging the product what i
normally do before selling any type of
product is just
check through a few of the reviews for
that product and make sure that there
are no significant red flags
within the reviews because if a lot of
people start saying that the product is
badly designed or maybe the product is
defective when it arrived
that could simply mean that you want to
avoid selling that product from that
supplier
maybe find a more reliable supplier
selling a better quality product
or just stay 10 feet away from that
product in order to avoid getting sued
in the future but of course not every
product is going to have reviews in the
beginning so if a product does not have
any types of ratings
check the suppliers other best-selling
products and look at those products
ratings because usually
good suppliers will have good ratings
for their products at least a majority
of the products but
if it's a bad supplier if it's a con
artist usually you can tell by looking
at their other
products reviews and seeing how other
customers experience
the products and whether they even liked
it in the first place or not and i
always make sure to do this before
listing any types of products nowadays
because
the laws are becoming very strict
whether it comes to advertising or just
selling online in general so you want to
make sure that you're not doing anything
that is against the rules because
that is an easy way just to lose your
drop shipping business so always make
sure
to check the ratings for other products
but also for the product itself that you
want to sell
as well as the supplier as a whole but
in addition to that just simply avoid
selling products with brand names
associated to them so for instance if
you want to sell a tv
don't go out and try to buy sony tvs or
samsung tvs and try to drop ship those
because of course those are associated
with the big brands again as i mentioned
earlier you need the reseller license
to sell those kinds of products you want
to only be selling those kinds of tvs
which don't have any brand name
associated with them
and don't have any types of logos on the
tv itself which associates that product
with the brand name but in addition to
that don't try to sell any types of
products with famous people or famous
things
which could be copyrighted or
trademarked on your shopify drop
shipping store one great example
is that of the phone cover so for
instance if we go on amazon and simply
type in
phone cover with celebrity we'll see
different types of styles popping up so
this first style is not any type of
copyrighted or trademark product simply
because it just has a design of flowers
nothing too crazy however if you look at
this second cover right here
this has a very very high chance of
being copyrighted and trademarked
simply because this is a famous person
on the phone cover and a lot of people
sell these kinds of products on amazon
ebay aliexpress as well potentially
because they could
possibly have the reseller license but
that does not mean that they don't
really sell them illegally as well so
you don't want to kind of go and
dropship from
those kinds of people but if you scroll
down another type of illegal product
would be this kind of one right here
where there's a famous person
on the phone cover and this again has a
possibility of being trademark or
copyrighted on the other hand
you want to simply sell a simple product
like this where there's no real type of
brand associated with that
sure there's a specific name at the
front which is daily lux but
if we check on google there's no real
brand that's called daily lux
but of course you would need to do a
little bit more research to find out
exactly
whether this product is a real brand or
is just some made up name that a lot of
chinese suppliers often do because that
will let you know whether this is a
product that you really can be selling
or you cannot be selling but this brings
me to my last point to how to avoid
really getting sued
and that is to simply separate yourself
from your business now what do i mean by
this exactly
well in order to really separate
yourself from your business you need to
register the business as a limited
liability company
or a s-corp or any of the other ways
that you can register a company and the
main reason why i suggest this
especially if you're starting to get
some traction and starting to do at
least
five thousand to ten thousand dollars in
sales every single month
is because when you register your
business as a limited liability company
and somebody sues you you they cannot
sue you personally meaning they won't be
able to take your car
or your home in the case that you lose
the lawsuit rather they can only take
what is registered under this llc or s
corp or whatever other type of business
you have registered as so if only your
website is registered under that
business
they can only take that website and
nothing else which saves you from a lot
of more trouble down the road because
if they personally sue you you could
possibly lose a lot of things from your
life which is something you don't really
want to do
so once you start getting those sales
make sure to separate yourself from your
business and again
you want to tok with your local
accountants to get more info on this but
getting sued definitely is not fun but
if you follow all of the things
mentioned in this video
you have a very very low chance of
getting sued but if you found any type
of value in this video
make sure to smash that like button down
below and don't forget to subscribe and
i'll see you guys next