Drop shipping in the Netherlands: a consumer’s nightmare

Regulatory non-compliance and consumer dissatisfaction

The findings paint a grim picture of non-compliance with legal standards. Two-thirds of the drop shipping sites failed to display mandatory information, such as a valid phone number, a return address, or a Chamber of Commerce registration number (KvK). Misleading practices were also common, with many retailers showcasing inflated review scores and neglecting to disclose return costs clearly. Among the 100 websites examined, 82 provided no information on return fees, only stating that the consumer would bear these costs.

Return process: a frustrating experience

Consumers frequently face hurdles when attempting to return products. Many drop shippers require customers to email the store for a return address, which is often in China, leading to prohibitively high shipping costs. Some retailers even refuse returns altogether, particularly for discounted items—a practice that is illegal in the Netherlands, as even discounted items must be returnable. Moreover, many of these stores seem to have their entire inventory perpetually on sale.

Questionable return policies

The study also highlighted dubious return policies among certain shops. For instance, some refuse returns if a customer orders the same item in multiple sizes or colors, while others charge a surcharge of 15-20% of the purchase price or € 10 for processing returns.

Widespread consumer frustration

In a separate survey involving over 2,500 panelists, a staggering 88% of respondents who had purchased from a drop shipper expressed regret. The primary complaints included long delivery times (81%), the inconvenience of returning items overseas (73%), and high return costs (64%). Quality issues were also prevalent (59%), with customer service often being hard to reach (58%). Furthermore, many consumers experienced delays or incomplete refunds (45% and 32%, respectively).

A persistent problem

Sandra Molenaar, director of the Consumers' Association, voiced her concerns: "The issues with drop shipping are numerous and persistent. Most drop shippers ignore regulations and seem unaware that running a business comes with responsibilities. The fact that consumers rarely recognize these sellers exacerbates the problem. We need to better protect and inform consumers, which is why we’ve shared our findings with the Dutch consumer watchdog ACM”.

The EU needs to act immediately to ensure that all laws and regulations are uniformly applied to all companies trading within the European Union. We've observed that in some countries, authorities are actively addressing issues like missing CE labels on used devices, while in others, enforcement is lacking. This inconsistency creates legal inequality. The same issue arises with the lack of prosecution of these drop shippers.