Observations by the ECC-Net
Although dropshipping as a business model has existed since the beginning of e-commerce, the ECC-Net has observed a considerable increase in dropshipping-related complaints in the last years. In June 2024, there were 2432 registered complaints within the network. It is likely that the actual number is significantly higher due to variability in case categorisation. For example, cases involving dropshipping might be classified either as dropshipping or under the broader category of e-commerce issues. This variability can lead to inaccuracies in reported numbers. The majority of these complaints originate from French (46%), German (25%), and Swedish (10%) consumers. The primary issues concern household furniture (27%), garments for women (16%), products for pets (14%), and shoes (8%). Most traders seem to be based in Belgium (27%), the Netherlands (23%), and the United Kingdom (21%).
Whereas important dropshippers are located outside the EU, for example in China, they are not yet significant in terms of numbers in the ECC-Net. This indicates that the issue needs to be addressed at a European level, despite the products often being manufactured in third countries.
Dropshipping stores often engage in misleading practices, such as falsely claiming high product quality or European origin (by using a misleading domain or brand name), using dark patterns such as fake scarcity promotions (“only today”, “15 customers are looking at this article right now” or “10 customers have just bought this product”), countdown timers, and misleading free shipping offers.
Sometimes, dropshipping e-commerce sites promote supposedly environmentally friendly products, claiming that direct distribution results in lower carbon emissions, or disguise the fact that the product is shipped from a third country by advertising it as a ‘local product’. In reality, the process of dropshipping involves the unchecked marketing of poor quality and even counterfeit products. If the product doesn’t match the consumer’s expectations because its poor quality, the consumer is discouraged from returning the product and instead asked to keep it, with price reductions being offered, supposedly for the sake of reducing emissions by avoiding returns.
Some products sold by dropshipping stores can also cause serious health problems. The Swedish Chemicals Agency (KEMI) conducted a study in 2022, revealing that dropshipping stores had the highest non-compliance rates (72%) in product safety, followed by marketplaces (60%) and traditional online stores (39%).