It all started with a simple desire: why not leave everything to go make a fortune in the sun? Five years ago, Theo set himself the challenge of becoming his own boss, in order to work at the pace that suits him. In a few months, he left his Lyon routine, his “meaningless” position in a large CAC 40 company and his fixed monthly salary. He moved to Madrid, and began to conscientiously study the workings of a direct sales system that was then all the rage among many youtubers and influencers: the dropshipping. The principle is simple. Any budding seller spots a product – preferably original and inexpensive – on major e-commerce platforms like AliBaba, AliExpress or Wish. He then created his own online store, and in turn offered the same object for sale, often presented in a more elegant way and at a much higher price. When the customer buys, it is… the original supplier who will ship the goods to him. The “dropshipper” has only done the middleman, and pockets a nice margin.
On paper, the practice has everything to please Theo: it allows him to get started with a low initial investment, without managing either stock or logistics. “On Youtube, influencers presented this as a model of success, a very easy to implement, achievable strategy. It was clearly the siren song”, sums up the thirty-something. In a few clicks, he created his own dropshipping store on the specialized Shopify platform, and linked his site to that of AliBaba via an application. By this sleight of hand, he manages to resell customizable t-shirts for around twenty euros – double the price offered by his supplier -, sells decorative objects at high prices through influencers on Instagram, and praises the benefits of its budget hiking accessories on social media.
For a year, the young man more or less managed to make a living from this business. The best months, he claims to have earned a salary of 1000 to 1500 euros net. “But we were very, very far from the Eldorado that I had imagined,” he confides. Above all, “the lack of ethics” around his practice makes him doubt. “I had more and more complaints from customers that had to be managed, in particular on the quality of the product or the delivery times… So I stopped everything”. It is precisely this type of practice that the Minister of the Economy Bruno Le Maire wishes to regulate, who launched a public consultation on January 9 in order to regulate the work of influencers and all practices related to the promotion and product placement on social media. “The products are presented as good quality and sold at a high price when in reality they are low-end products bought at low cost. A misleading commercial practice which is a criminal offence”, he already recalled in April 2021 about dropshipping, inviting consumers to report all “questionable practices” on the SignalConso site.
A model that appeals to more and more young people
Coming from the United States and popularized in France by certain influencers towards the end of the 2010s, the practice of dropshipping is no longer reserved for a few clever youtubers or resourceful geeks. “The model is attracting more and more young people, because it is presented on the Internet as a quick and effective way to earn millions. Which obviously does not translate into reality”, summarizes Roger Malack, doctoral student in sociology at the University of Paris-Nanterre and co-author of a recent survey on the subject, published in The Conversation. Among the profiles of new “dropshippers”, the sociologist describes a population of students, young job seekers or low-skilled people, or even active people disappointed by the business world… “In general, they drop everything and give their all to their new activity. They see dropshipping as a kind of social elevator: on the networks, everything is done to convince them that with a lower investment, they will be able to realize all their dreams”.
Especially since if the merchant offers products that are legal, compliant and non-dangerous with regard to the regulations in force, while respecting the rules applicable to distance selling, this practice remains legal. “It’s neither more nor less than a direct delivery e-commerce service”, summarizes Roger Malack. A model which nevertheless worries the Directorate General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF), which deplores to L’Express a booming business, generating “many misleading commercial practices, the formation of future seller to the presentation of online stores”, and which would lead to “several hundred complaints” with its services each year.
Methods tending to make believe that the stock of available products is rapidly decreasing or that the promotional offer indicated is only valid for a very short time, missing information on the identity and contact details of the seller, delivery times longer than those indicated when ordering, counterfeit products, of lower quality, even dangerous… By consuming products from the dropshipping, many buyers have reported their disappointments to the DGCCRF, which encourages Internet users to be extremely vigilant. “There is no miracle solution or legal package to exempt oneself from the regulations in force or controls. You may be held liable if the products do not comply with French regulations”, also recalls the repression of fraud in a guide of good conduct for professionals wishing to embark on the practice.
“You have to have a nose”
But on the Internet, this advice often remains a dead letter. “I must admit that I didn’t really follow all the compliances described by the DGCCRF when I started”, admits Théo. “And I can assure you that 95% of dropshippers don’t do it”. “Abusive dropshipping is present everywhere on the Internet, with sellers who do not exist legally, never cite the origin of the products, nor do they respect delivery times”, confirms Dorian Dignac, co-founder of the site AntiDropa search engine that allows consumers to find products from the dropshipping. Since April 2021, more than 6,000 links have been tested by Internet users on its platform. The observation is clear: out of 11,000 items scanned, more than 2,600 were considered “shady or dropshipped”.
A bracelet made of “rare amber stones”, offered at “49.95 euros instead of 99.90 euros” on a pretty website in pastel colors, was thus found by the young man on AliExpress for 2.15 euros, just like a leather backpack sold at 189 euros on a “specialized” site and offered at 72 euros on the Chinese supplier’s platform. Amused, Dorian Dignac enumerates the list of products, sometimes surprising, made popular by dropshippers French. “There was this famous depilatory gum, which cost 4 euros on AliBaba and resold on certain sites for ’60 euros for three’. Or that big hooded plaid we’ve seen everywhere, those poor quality sofa covers resold for three times their price…”. The challenge, according to the engineer, is to find “the” product that will interest consumers. “But for that, you have to have a nose. And learn to organize”.
“Between the discourse broadcast and reality, there is a real gap”
It is precisely on this point that some dropshippers have sniffed out a new business: on Youtube or their own sites, they now offer dozens of online courses, allowing them to learn about the mechanisms of dropshipping. From free tutorials to “condensed and solid content” sold for more than 1000 euros, these “entrepreneurs” promise their future students success, easy money and success in a few months. “However, these shortcuts are dangerous. Between the discourse broadcast and reality, there is a real gap”, warns Roger Malack. “Among the people who have followed my training, very few have gone to the end, and they are a minority to earn their living through the dropshipping. You have to give everything, it’s a real job”, admits Frank Houbre, who presents himself on the Internet as an entrepreneur and trainer in e-commerce.
Four years ago, this former drop shipper decided to publish videos on the Internet, in which he reveals the secrets of his activity for sums ranging from 10 to 1500 euros for a “complete” module. Since then, “more than 4,500 students” have followed them. “I got into this business because I wanted to show that you could get more than a minimum wage by practicing dropshipping. And there is a lot of money to be made in training, you have to be clear about that”, admits the entrepreneur, now converted into cryptocurrency. “I was fooled by this kind of talk of success. But if I could go back, I wouldn’t do it again”, comments Théo, who has since launched his own web-marketing company. “When you realize that it was all an illusion, you quickly want to move on”.