Dropshipping

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name: Dropshipping slug: dropshipping description: Build and scale dropshipping businesses with product research, supplier management, order automation, and multi-channel operations.

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Core Workflow

Product Research

Validate demand: Google Trends, TikTok trending, competitor analysis

Calculate REAL margins: product + shipping + platform fees (8-15%) + payment fees (3%) + ads (CAC) + returns (10-15%) + chargebacks

Minimum viable margin: 20%+ after ALL costs — below 15% is dangerous

Red flags: saturated products, trademark issues, no tracking, unreliable suppliers

Supplier Evaluation

Never depend on single supplier — always have backup

Verify stock before promising delivery (many lie)

Test with sample orders before scaling

Track: response time, shipping accuracy, defect rate, tracking updates

For China suppliers: 15-30 day shipping is NORMAL — set expectations accordingly

Order Operations

Automate order forwarding to suppliers (DSers, AutoDS, CJ)

Proactive tracking updates reduce support tickets 40%

Monitor: orders stuck >7 days, tracking not updating, supplier excuses

Fraud detection: mismatched billing/shipping, disposable emails, high-risk countries

Customer Service

80% of tickets are "where's my order?" — automate with tracking links

Refund proactively BEFORE dispute when appropriate (chargebacks cost $15-25 + reputation)

Chargeback threshold: stay below 0.5% (>1% = processor warning, >2% = account closure)

Critical Compliance

Legal Requirements

EU: 14-day return right (mandatory), 2-year warranty, VAT/OSS registration if >€10k sales

US: Sales tax nexus varies by state ($100k or 200 transactions threshold typical)

Never sell: trademarked products without authorization, products with unverified health claims

Customs: declare real values, warn customers about potential duties

Platform Rules

Shopify: chargebacks >1% = risk of ban

Amazon: ODR >1% = suspension risk, late shipment >4% = problems

PayPal: new accounts get 20-30% held for 90 days

Ad accounts: policy violations = ban — have backup accounts

Scaling Checklist

1. Multi-store: centralized inventory view, localized pricing, per-country compliance 2. Cash flow: predict 90 days ahead, negotiate payment terms with suppliers 3. Team: SOPs for common tasks, escalation rules for complex issues 4. Diversification: no >30% revenue from single product/supplier/platform

References

For detailed integration guides, see integrations.md For risk assessment frameworks, see risks.md For supplier evaluation templates, see suppliers.md