ACM issues warning against online stores that deliver products directly from abroad

The Netherlands Authority for Consumers and Markets (ACM) has issued a warning against online stores Bestie on the move (www.bestieonthemovie.nl) and Van Halen mode (www.vanhalenmode.nl). ACM has received dozens of reports from consumers about long delivery times, disappointing quality of the products, and problems with returns and refunds. Both online stores mostly sell clothing, and they presumably use dropshipping.

ACM increasingly sees that online stores have their products directly delivered from abroad (this is called dropshipping), yet they do not inform consumers properly about this. Consumers think on the basis of the information on a website that they are buying something from a Dutch online store, even though the products are shipped to consumers directly from China. As a result, the delivery times are much longer than if products had been shipped from warehouses in the Netherlands. ACM requires dropshippers to inform their customers clearly that their products are directly shipped by a different, foreign company, and to indicate from what country these products are shipped, and what a realistic delivery time is. Dropshippers that are based in the Netherlands must also have return addresses in the Netherlands.

Edwin van Houten, Director of ACM’s Consumer department, explains: “Online stores that sell products directly from, for example China, must state this on their websites in a clear and easy-to-find manner. They must also inform their customers what the actual delivery times are, as well as about the addresses that customers can use for returning their purchases. With the right information, consumers are able to make better decisions about which online stores they wish to place their orders with. For example, if a product comes directly from China, you know that the delivery can easily take several weeks. Take this into consideration when choosing the online store you want to do business with.”

What was this case about?

Consumers complained to ACM that they had ordered clothing from online store Bestie on the move, and it turned out later that the delivery of their orders would take more than three weeks. Yet, on the website, it says: ‘Order before 23:00? Shipped today’, which led consumers to believe that their orders would be delivered within a few days. Consumers also said that returning products was difficult, as these had to be shipped to China, that a fully-functioning refund system was not in place, and that the quality of the pieces of clothing was much lower than shown on the websites. Also, the online store could not be easily reached for complaints.

Consumers that placed orders with online store Van Halen mode complained about the long delivery times. The online store gives a delivery time of five to eight working days. In reality, delivery times were at least three weeks. Consumers also said that returning products was difficult, as these had to be shipped to China, that a fully-functioning refund system was not in place, and that the quality of the pieces of clothing was much lower than shown on the websites. Also, the online store could not be easily reached for complaints.

That is why ACM is warning consumers about these two online stores.

What is dropshipping?

More and more online stores use dropshipping. This means that they sell products that they do not have in stock, but that third parties (often in China) ship to the customer directly. This is allowed, if dropshippers are clear about it and comply with the rules for selling online:

• Clearly and correctly mentioning the delivery times;
• Mentioning what country the products are shipped from;
• Online stores based in the Netherlands must give a return address. If the online store is based outside the Netherlands, consumers must be informed about the return address before the purchase is made. Also, it must be stated in advance who pays for the return costs

What can consumers do?

Many dropshipping websites already exist, and new ones are launched constantly. In order to prevent getting tempted into making purchases you will regret afterwards, you would be best advised to check several things before clicking on that ‘purchase’ button:

1. Check whether the website displays contact details, a number from the Netherlands Chamber of Commerce (in Dutch: KvK-nummer) and/or a tax number from the Dutch Tax Administration (in Dutch: btw-nummer). After all, you want to know whom to contact if you wish to return an item or if you have any other issues;
2. Check the information about costs, the origin of the product, and delivery times. If key information is missing, ask yourself what risks you are willing to take if products turn out to be more expensive or are delivered late;
3. Many dropshippers run ads on social media such as Facebook and Instagram. If you click on a link in a social-media post or ad that takes you to a product page, do not forget to look at other pages on the website to see if all of the above information is there;
4. Check reviews posted by other consumers before making a purchase, preferably reviews on sites other than the seller’s website. Reviews on the seller’s website are not always reliable.

This information and other information can be found on ACM’s Consumer information portal ACM ConsuWijzer.