Direct comparison
Dropshipping vs Reselling for Medical Supplies
Dropshipping vs reselling for medical and lab supplies: who is the seller under FTC rules, and when relabeling under your name brings FDA labeling duties.
Written and maintained by CASRAI Editorial Board
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How do Dropshipping and Reselling compare side by side?
The table below compares Dropshipping and Reselling across 11 dimensions, from working definition (as used on this page) to when to pick each.
Side-by-side comparison
| Dimension | Dropshipping | Reselling |
|---|---|---|
| Working definition (as used on this page) | The seller takes the customer's order and the supplier ships the goods straight to the customer. | The seller buys goods from a supplier first and ships them to the customer itself. |
| Who is the 'seller' to the customer | The seller who takes the order. The FTC guide says the person soliciting the order, not the agent fulfilling it, is the seller under the Rule. | The seller who takes the order, which is the same person who ships it. The Rule applies to most goods ordered by mail, telephone, fax or the Internet. |
| Who answers for a shipping failure | The order-taking seller. On drop shippers and fulfillment houses, the FTC guide answers who is responsible: 'The seller is.' | The seller, directly, since the seller also ships. |
| The shipping-time promise | The Rule requires a reasonable basis for any stated shipping time, and, with no stated time, for believing the order can ship within 30 days. That basis has to come from the supplier's actual ship-time terms. | The same requirement applies. The seller's own handling process is the basis for the stated time. |
| If the order will be late | The seller must seek the customer's consent to the delay and notify the customer, even though the delay arose at the supplier. | The seller must seek the customer's consent to the delay and notify the customer. |
| Putting your own name on a device package | Not part of plain dropshipping. If the supplier relabels the package under your name, that is the private-label variant (see the section below). | Not part of plain reselling of an unchanged package. Repackaging or otherwise changing the container, wrapper or labeling of a device package falls within 'manufacture, preparation' in 21 CFR 807.3(d)(1). |
| Name shown on a device label | 21 CFR 801.1(c): where a device is not manufactured by the person whose name is on the label, the name must be qualified by a phrase such as 'Manufactured for ___' or 'Distributed by ___'. | The same labeling rule applies to any label that carries the reseller's name. |
| Device establishment registration | Depends on what each party does. 21 CFR 807.3(t) defines a wholesale distributor as a person other than the manufacturer or initial importer who distributes a device to the person making final delivery or sale. Ask the supplier for its registration status rather than assume. | 21 CFR 807.65(e) exempts, among others, pharmacies, surgical supply outlets or similar retail establishments making final delivery or sale to the ultimate user. Do not assume the exemption covers your activities; confirm with a regulatory adviser. |
| General-purpose laboratory items | 21 CFR 807.65(c) exempts general-purpose articles such as chemical reagents or laboratory equipment from establishment registration if they are not labeled or promoted for medical uses. | The same exemption applies, and it turns on how the item is labeled and promoted, not on the fulfillment model. |
| Documents to ask the supplier for | A written ship-time commitment; who ships and under whose name; how delay notices and returns are handled; who is responsible for labeling; the supplier's registration and listing status where the item is a device. | Written terms for the goods you buy; who is responsible for labeling; the supplier's registration and listing status where the item is a device; how you will support the shipping time you state. |
| When to pick each | When a supplier will put its ship times and shipping identity in writing and you accept the order-taking seller's responsibility for them. | When you want to support the shipping promise through your own handling, or when the supplier will not commit in writing to ship times. |
Sources
- FTC, Business Guide to the Mail, Internet, or Telephone Order Merchandise Rule (read 2026-11-01)
- 21 CFR 807.3, 807.65, 801.1 (eCFR, read 2026-11-01)
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Common questions
Common questions about Dropshipping vs Reselling
What is the difference between dropshipping and reselling?
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In dropshipping the supplier ships the goods straight to your customer; in reselling you buy the goods and ship them yourself. Toward the customer the difference is smaller than it looks: under the FTC's Mail, Internet, or Telephone Order Merchandise Rule, the person soliciting the order is the seller, not the agent fulfilling it.
Which is the better fit for a medical supply seller or buyer?
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It depends on who can commit to the shipping promise and who controls the label. Dropshipping fits when a supplier puts ship times and labeling responsibility in writing. Reselling fits when you want to support the shipping promise through your own handling. For a device, labeling and registration status need an answer under either model.
What legal or compliance risks differ between them?
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The order-taking seller carries the FTC shipping-time and delay-notice duties in both models, including when a drop shipper causes the delay. The device-specific difference arises when a name is put on the package: changing the labeling of a device package is within 'manufacture, preparation' in 21 CFR 807.3(d)(1), and the label name must be qualified under 21 CFR 801.1(c).
Dropshipping vs private label: what changes?
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Private label adds a relabeling step. With plain dropshipping the supplier's own packaging goes to your customer. With private label your name goes on the package, which engages 21 CFR 807.3(d)(1) and the qualified-name rule in 21 CFR 801.1(c) for a device. Ask your supplier and a regulatory adviser who holds the registration and listing duties.
Private label vs dropshipping: can I combine them?
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Yes as a business arrangement: a supplier can ship a privately labeled product to your customer. The two sets of duties then add up: you are the seller for the FTC Rule, and the labeling and registration questions for your name on the package still apply.
