Updated September 16, 2026
How dropshipping works
You don’t keep any inventory yourself. When a customer orders in your webshop, you pass the order on to a supplier, who ships the item directly to the customer. Your earnings are the difference between your selling price and the supplier’s price, minus fees, marketing and returns.
You’re the seller — with everything that entails
The customer bought from you, not from the supplier. That means that toward Danish consumers, you’re responsible for the right of withdrawal, the right to complain about defects, and making sure the products comply with the rules. If the supplier delivers a defective item, you’re the one the customer complains to.
- A 14-day right of withdrawal — and a return address the customer can use.
- A 2-year right to complain about defects for consumers.
- Products must comply with EU rules, such as CE marking on toys and electronics.
- Accurate information about delivery time before the customer buys.
VAT and customs on goods from outside the EU
Since July 2021, VAT must be paid on all goods imported into the EU, including small parcels. If the goods are shipped from a supplier outside the EU, you need to know how the VAT is collected, so the customer doesn’t get an unexpected bill on delivery. The worst customer experience in dropshipping is a parcel that has to be paid for a second time.
You must register for VAT in Denmark once your sales exceed DKK 50,000 over 12 months. Talk to an accountant about your specific setup, especially if you sell to several EU countries.
Delivery time is the biggest challenge
Danish customers are used to delivery in 1–3 days. Goods from Asia can take several weeks. State the delivery time clearly, or choose suppliers with warehouses in the EU, even if the purchase price is higher. Long and unclear delivery times lead to complaints, chargebacks and bad reviews.
How to choose a supplier
- Order the item yourself and assess quality, packaging and delivery time.
- A warehouse in the EU means shorter delivery and fewer VAT and customs problems.
- Check whether the supplier can handle returns.
- Make sure the products have the necessary documentation and labeling.
Platform and webshop
Most dropshippers use Shopify or WooCommerce with an app or plugin that forwards orders to the supplier. More important than the platform is that the webshop looks trustworthy: Danish terms and conditions, Danish customer service, a CVR number and realistic delivery times. That sets you apart from the many hastily created stores Danish consumers have learned to be skeptical of.