UGC X DROPSHIPPING

UGC influencers are key in building brand trust through authentic content. However, when used wrongly by some dropshipping companies, they can unintentionally promote products that may not meet safety standards or ethical practices.

What is dropshipping?
Dropshipping is a retail model where the seller doesn't stock the products they sell. Instead, customer orders and shipping details are forwarded to a manufacturer, wholesaler, retailer or fulfillment service, which handles the product shipment directly to the customer. This business approach has gained popularity due to its low startup costs and minimal overhead, as it can be run from anywhere with an internet connection. However, there are downsides to this model that is starting to stir up important discussions and questions.

Dropshipping is permitted in Sweden, but the issue arises when the products being sold come from countries that do not comply with EU regulations and webshops that employ deceptive practices that mislead customers using carefully crafted AI-generated storytelling.

Two prominent voices addressing this issue are Ekotipset on Instagram and Modemassakern on TikTok, who both explore the topic in depth and provide clear examples.

What are the problems with dropshipping?*
- Dropshipping can involve unregulated products from foreign countries.
- There is a significant risk that these products do not meet EU standards for product safety and chemicals.
- There is also a high likelihood that workers at the supplier’s facilities face poor working conditions.
- These websites can claim to be serious Swedish online stores with Swedish prices, payment and shipping methods, but they are actually not and source products from third parties and countries.
- Recent dropshipping sites have created false narratives, using fabricated backstories and AI-generated photos to claim they need to sell off stock before closing down, strongly misleading their customers.

How do you recognize this type of dropshipping?*
- The full company information is either missing or hard to find on the website (which must be provided by Swedish online stores).
- Strange terms, translations and phrasing are common signs.
- Long delivery, often explained away with excuses such as "handmade products" or "high demand".
- Frequent offers and discounts.
- The companies often present themselves as family-run businesses that are closing down and selling off stock at low prices.

*Disclaimer
Not all dropshipping stores engage in these practices, but those that do pose significant concerns.

Dropshipping tactics
A part of the issue is that these dropshipping companies sometimes use UGC influencers to market their products. UGC influencers are often micro-profiles or individuals who may not be aware of the problems or risks that are mentioned above. By sharing organic content on their personal channels, these influencers help enhance the credibility of the companies.

Ethics
By working with us, United Influencers, as an intermediary between companies and influencers, we help combat these issues and the misuse of UGC influencers. We prioritize ethics and regulations, promoting fairness and respect within the industry.

And by partnering with responsible brands and influencers, we help protect consumers from deceptive practices and support a more trustworthy online marketplace. Let’s work together to create a better, more transparent digital environment where both consumers and creators can thrive! 

For more information:

Jakob Wigselius

CEO Scandinavia

jakob@unitedinfluencers.se

United Influencers // ELLE Norway