Shopify Dropshipping
Category: platform
Running a Shopify store where orders are fulfilled directly by third-party suppliers.
Shopify dropshipping is a model where sellers create a Shopify store and fulfill orders through third-party suppliers shipping directly to customers. Tax-wise, it creates nexus obligations based on seller and supplier locations.
Examples
- • A US Shopify dropshipper selling to California must collect California sales tax.
- • AliExpress dropshipping typically has 2-4 week shipping times.
- • Unlike marketplace sellers, Shopify dropshippers must handle sales tax themselves.