For US based businesses that do drop shipping from international supplier (say China), how do they handle the goods import issues as they are imported directly to US customer? Does it mean the customer pays taxes (import duties)? My thinking is that a customer would assume since they are buying from a local business such issues would not arise.
Josh here from the Shopify Guru Team.
I often have found when importing packages from China they usually have a small monetary value linked to them, or are labelled as "gifts." In these cases your customers would not need to worry about duty being charged. However, it is always best to check with your supplier to see how they mark their packages when shipping overseas.
Packages being marketed as a gift, or being linked to a low monetary value cannot always be guaranteed, which is why I would recommend putting a note that the customer is responsible for duty in your FAQ, Terms of service, or in your order confirmation email.
Oberlo is a drop shipping app on Shopify and they wrote a great post on how to combat this issue with your online store. You can find the post below: