How to start dropshipping in 2026

Most countries let you start as a sole trader (self-employed) or form a company. Register with your national business or tax authority before you start selling. Pick a country above for official links.

Choose between being a sole trader (register for Self Assessment with HMRC) and a limited company (register with Companies House). Start with Set up a business (GOV.UK) and Working for yourself (GOV.UK).

Choose a structure (sole proprietorship, LLC or corporation). Register with your state where required, and get an Employer Identification Number from the IRS if you need one. See Register your business (SBA) and Get an EIN (IRS).

Register as a sole proprietor, a partnership or a corporation, provincially or federally. You get a CRA business number when you register for program accounts such as GST/HST. See Starting a business (Canada.ca) and Registering your business (CRA).

Most businesses need an Australian Business Number (ABN); you can also register a business name or company. Some AU platforms, for example Dropshipzone, ask for an active ABN. See Registrations (business.gov.au) and Applying for an ABN (ABR).

Trade as a sole trader or register a company with the Companies Office. Sole traders can get an NZ Business Number (NZBN). See Starting a business (business.govt.nz) and NZBN.

Registration happens in the EU country where you are established, and each country has its own rules. Start with the EU portal Your Europe – Business, which links to each national point of single contact.

Find out when you must register for VAT, GST or sales tax, and how platform and marketplace collection rules apply to you. Pick a country above for the official guidance.

Register for VAT once your taxable turnover goes over the threshold. Check the current figure on VAT registration (GOV.UK). You also report self-employed profits through Self Assessment.

Sales tax is set by each state. Whether you must collect it depends on where you have a physical or economic “nexus”, and marketplace facilitator rules may apply. Check your state’s revenue department. Federal income tax on profits: IRS Small Business and Self-Employed. Overview: Pay taxes (SBA).

Register for GST/HST when you no longer qualify as a small supplier. The rules and the threshold are on GST/HST for businesses (CRA). Some provinces also charge their own sales tax.

Register for GST when your turnover reaches the registration threshold. Check the ATO for the current figure: Registering for GST (ATO).

Register for GST if your turnover is over the threshold, or will be. See GST (IRD). Income tax on profits is also handled by IRD.

Selling online to consumers in other EU countries? The One-Stop Shop (OSS) lets you declare VAT for all of them in one return. See VAT One-Stop Shop (European Commission). Your national tax authority sets local registration rules.

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Compare these on the live directory with the same country filter.

Compare these on the live directory with the same country filter.

Compare these on the live directory with the same country filter.

Compare these on the live directory with the same country filter.

Compare these on the live directory with the same country filter.

Compare these on the live directory with the same country filter.

If your supplier ships from another country, your customer or you may face import VAT/GST, duties and customs paperwork. Local stock avoids most of this.

For consignments worth £135 or less sold directly to UK customers, UK VAT is charged at the point of sale instead of at import. Read VAT and overseas goods sold directly to customers in the UK (GOV.UK). For higher-value goods, see Importing goods into the UK.

Imports are handled by U.S. Customs and Border Protection. Duty-free treatment for low-value shipments has changed recently, so check CBP before relying on overseas suppliers: Basic import and export (CBP).

The Canada Border Services Agency (CBSA) handles commercial imports, duties and taxes. See Importing commercial goods (CBSA).

GST applies to low-value imported goods sold to Australian consumers, and the Australian Border Force handles imports. See GST on low value imported goods (ATO) and Importing (ABF).

New Zealand Customs collects duties and GST on imports. Low-value goods sold to NZ consumers may involve GST collected by the seller. See Importing (NZ Customs) and GST for overseas businesses (IRD).

Since July 2021, VAT applies to all goods imported into the EU, and the Import One-Stop Shop (IOSS) covers low-value consignments. See Customs (European Commission) and OSS/IOSS.

You, the seller, are responsible to the customer, not your supplier. That covers accurate descriptions, safe products, refunds and delivery promises.

Online shoppers generally have a 14-day right to cancel, and goods must be as described and of satisfactory quality. See Online and distance selling for businesses (GOV.UK) and Product safety for businesses.

The FTC’s Mail, Internet or Telephone Order Merchandise Rule requires you to ship within the time you state (or offer refunds). The CPSC regulates consumer product safety. See FTC Mail Order Rule guide and CPSC business guidance.

Consumer protection is mainly provincial. Federal product safety comes under Health Canada. See Office of Consumer Affairs and Consumer product safety (Health Canada).

The Australian Consumer Law gives customers automatic guarantees that you cannot exclude. See Selling products and services (ACCC) and Product Safety Australia.

The Consumer Guarantees Act and the Fair Trading Act apply to online sellers. See Consumer Protection (MBIE) and Commerce Commission – business.

EU consumers usually have a 14-day withdrawal right for distance purchases. The General Product Safety Regulation applies to consumer goods sold online. See Consumer contracts and guarantees (Your Europe).

Price in your local currency. Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in GBP (£). Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in USD ($). Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in CAD (C$). Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in AUD (A$). Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in NZD (NZ$). Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).

Price in EUR (€) in eurozone countries; some EU states use their own currency. Include product cost, supplier shipping, platform and payment fees, tax, advertising and refunds, then test your numbers in the margin calculator (its currency follows the country you pick).