Dropshipping

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

## 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`