Cookie
Website Terms of Use
E-commerce and new business models: dropshipping
By Avv. Francesca Sutti and Avv. Federich Romby
28 September 2017
Modern business is characterized by increasingly rapid exchanges. Companies are called upon to respond to demanding and sophisticated demand. As a result, especially in the field of e-commerce, new business models are developing, both among large platforms and among micro-enterprises. Among these models is dropshipping.
In short, this occurs when the seller offers on their site a product they do not physically have in stock. The mechanism is as follows:
In this way, sellers can focus on building their network of suppliers, eliminating the risk of unsold goods and the need to have a warehouse, with the financial burdens that entails. Even producers who sell online, for that matter, often offer products they do not have immediately available.
Dropshippers, in turn, have the opportunity to significantly expand their sales network, being able to reach customers they would hardly have been able to reach on their own.
And what about consumers?
The business model under consideration is certainly advantageous for them as well, insofar as it expands the possibilities of access to different products and, therefore, the possibility of choice.
It should be noted that on more than one occasion the Antitrust Authority has already clarified (see in particular case PS10171 T. and PS9192 U.) that the practice of selling products not available in stock should be considered misleading.
So, is dropshipping illegal?
No. More simply, those who operate through virtual warehouses must not lead the consumer to believe that the product is actually in the hands of the seller. Such a practice would indeed be misleading and would therefore violate the Consumer Code.
Not to mention that this can generate compensable damage and, in any case, undermine consumer trust.
It is therefore essential to establish when the sale is concluded. Generally, this is identified with the moment when the buyer receives confirmation of the order from the seller, or in any case a confirmation that generates legitimate reliance in the buyer.
Some, however, believe that displaying products on the site constitutes an irrevocable offer to the customer, and that the sale would be concluded when the seller receives the order for the goods.
The key, therefore, is to ensure that the consumer is made aware that the sale will be finalized at a later time, which may also coincide with the delivery of the goods.
Milan, Corso Europa, 10 - 20122 - Italy
Phone: 0039 02 877820 Mail: info@wlex.it
Cookie
Website Terms of Use