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Dropshipping administration: the biggest pitfalls (and how to avoid them)

Why administration with dropshipping is different from a normal shop

Many business owners think, "I have no inventory, so my administration is simple."
Nothing could be further from the truth. With dropshipping, you have to deal with: Cross-border deliveries (often outside the EU)

Multiple sales platforms (Shopify, Bol.com, Amazon)

Payment providers (Stripe, PayPal, Mollie). Supplier invoices from other countries (e.g., China, US, UK). Each step creates financial movements that you need to record correctly. Moreover, different VAT rules apply in international trade.

The biggest pitfalls in dropshipping administration

A. Misstating VAT obligations

If VAT obligations are not clearly mapped out from the beginning, this can cause problems later on. Ideno makes sure that your VAT obligations are always done correctly and taken into account.

B. No proper linkage between sales and payments

Sales amounts on Shopify ≠ amount in your bank account. PayPal and Stripe include transaction fees and refunds that must be booked separately

C. Incorrect inventory and margin records.

Purchase prices from dropship suppliers must be recorded correctly, including shipping costs and import duties. Otherwise your profitability (and thus your tax position) is not correct

D. No administration of returns and cancellations

Refunds, returns and chargebacks must be processed separately for a correct VAT and profit calculation

Consequences of poor administration for dropshippers

Poor recordkeeping doesn't just lead to tax problems. You can also:

  • Making wrong decisions because your margins are wrong.
  • Receiving unexpected assessments and fines from the Internal Revenue Service.
  • Having difficulty attracting financing or investment because your numbers are not reliable

Poorer performance in scalable platforms (such as Bol.com, Amazon) due to incomplete accounting requirements

In short: poor administration inhibits your growth, immediate cash flow and long-term success.

How IDENO helps dropshippers with error-free e-commerce administration

✅ Full platform links
We directly link your Shopify, WooCommerce, Amazon and other systems to our administration system. No manual entry required.

✅ Real-time margin reports
You will immediately see your real profit per product, after deducting all costs: purchasing, shipping, marketing and platform fees.

✅ VAT compliance including OSS and foreign registrations
We make sure you register, declare and remit VAT correctly in each required country.

✅ Automatic processing of refunds and chargebacks
Returns and refunds are booked automatically, without you having to look into it yourself.

✅ Proactive guidance for growth
We alert you in time when, for example, you fall under CESOP reporting requirements or new tax rules affect your business.

Why choose a specialist?

  • Standard accountants often do not fully understand dropshipping:
  • They miss the link between transactions and platforms
  • They don't understand how Stripe, PayPal and foreign suppliers work
  • They focus too much on annual reports and not enough on real-time steering

At IDENO, we combine e-commerce experience + tax expertise + automation.
So that your administration becomes scalable, compliant and profitable - not only now, but also when you grow to 7-figure turnovers later.

Certainty in your accounting? Start here.

Smart numbers. Powerful choices. We take care of your accounting, tax and international compliance so you can focus on your growth.

Join hundreds of entrepreneurs growing with confidence

 

Serginho Esajas

Serginho Esajas

Specialist in tax advice

Direct contact

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