Skill: ivangdavila/dropshipping (version 1.0.0)

--- 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`

path: integrations.md
content: # E-commerce Integrations Reference

## Store Platforms

### Shopify
- **API**: REST Admin API + GraphQL Admin API
- **Key features**: products, orders, fulfillment, webhooks, themes (Liquid)
- **Fees**: Basic $29, Shopify $79, Advanced $299/month + transaction fees
- **Dropshipping apps**: DSers (official AliExpress partner), AutoDS, Spocket

### WooCommerce
- **API**: REST API v3
- **Key features**: self-hosted (WordPress), unlimited customization, plugin ecosystem
- **Costs**: hosting + premium plugins
- **Dropshipping plugins**: AliDropship, WooDropship, Dropified

### BigCommerce
- **API**: REST + GraphQL Storefront
- **Key features**: multi-storefront native, headless capabilities, B2B features
- **Pricing**: based on annual sales

## Marketplaces

### Amazon
- **API**: SP-API (Selling Partner API)
- **Dropshipping rules**: allowed but supplier must remove their branding
- **Fees**: referral 8-15% + FBA fees if using fulfillment
- **Critical metrics**: ODR <1%, late shipment <4%

### eBay
- **APIs**: Browse API, Sell APIs, Fulfillment API
- **Dropshipping**: allowed with restrictions
- **Fees**: insertion + final value 12-15%

### Etsy
- **API**: Open API v3
- **Best for**: handmade, vintage, craft supplies, print-on-demand
- **Fees**: $0.20 listing + 6.5% transaction

## Suppliers/Sourcing

### AliExpress
- **Integration**: via DSers, AutoDS, or direct API
- **Shipping**: ePacket 15-30 days, AliExpress Standard
- **Tip**: AliExpress Dropshipping Center for product research

### CJ Dropshipping
- **API**: CJ API
- **Advantages**: US/EU warehouses, POD included, branding options
- **Better shipping**: faster than AliExpress direct

### Spocket
- **Integration**: Shopify, WooCommerce, Wix, BigCommerce
- **Focus**: US/EU suppliers (faster shipping)
- **Pricing**: Free, Starter $24, Pro $49/month

### Print-on-Demand
- **Printful**: leader, global warehouses, branding options
- **Printify**: network of print providers, compare prices
- **Gooten**: API-first, good for high volume

## Automation Tools

### Order Processing
- **DSers**: official AliExpress partner, bulk orders, supplier optimizer
- **AutoDS**: full automation, 25+ suppliers, price monitoring
- **Dropified**: similar features, Chrome extension

### Shipping
- **ShipStation**: multi-carrier, automation rules, branded tracking
- **Easyship**: courier comparison, duties calculator
- **AfterShip**: tracking automation, 1100+ carriers, branded tracking page

## Payments

### Primary Processors
- **Stripe**: 2.9% + $0.30, fraud detection (Radar), multi-currency
- **PayPal**: 2.9% + $0.30, buyer protection (chargeback risk), 21-day holds for new sellers
- **Shopify Payments**: Stripe-powered, no additional transaction fees

### BNPL (Buy Now Pay Later)
- **Klarna**: increases conversion 20-30%, fees 4-6%
- **Afterpay/Clearpay**: 4 payments, fees 4-6% + fixed

### Regional
- **LATAM**: Mercado Pago, PagSeguro, OXXO (Mexico)
- **Europe**: SEPA, iDEAL (NL), Bancontact (BE), Sofort
- **Asia**: Alipay, WeChat Pay

## Marketing

### Advertising
- **Meta Ads**: Marketing API, Conversions API, Pixel + CAPI for iOS tracking
- **Google Ads**: Shopping, Search, Performance Max, Merchant Center setup
- **TikTok Ads**: TikTok Pixel, Spark Ads (boost organic), younger demographic

### Email Marketing
- **Klaviyo**: e-commerce focused, Shopify native, flows (abandoned cart, post-purchase)
- **Omnisend**: email + SMS + push, pre-built automations
- **Mailchimp**: more general, generous free tier

### SMS
- **Postscript**: Shopify-focused
- **SMSBump**: affordable option
- **Note**: TCPA compliance required in US

## Analytics

### Traffic & Conversion
- **Google Analytics 4**: event-based tracking, enhanced e-commerce
- **Google Tag Manager**: centralize all tracking tags

### Attribution
- **Triple Whale**: first-party data, profit tracking, creative analytics
- **Northbeam**: multi-touch attribution, media mix modeling

### Profit Tracking
- **BeProfit**: profit analytics, COGS tracking
- **Lifetimely**: LTV predictions, cohort analysis
- **OrderMetrics**: real-time profit, multi-store

## Customer Service

### Helpdesks
- **Gorgias**: e-commerce focused, revenue tracking per ticket
- **Zendesk**: enterprise-grade, multi-channel
- **Freshdesk**: affordable, free tier available

### Reviews
- **Judge.me**: affordable, photo/video reviews, free plan
- **Loox**: photo reviews, import from AliExpress
- **Yotpo**: reviews + UGC + loyalty (enterprise)


path: risks.md
content: # Dropshipping Risk Assessment

## Legal & Compliance Risks

### Tax Obligations

| Risk | Severity | Prevention |
|------|----------|------------|
| EU VAT/OSS | 🔴 HIGH | Register OSS if >€10k sales to EU consumers. Fines up to 200% of unpaid VAT |
| US Sales Tax Nexus | 🔴 HIGH | Use TaxJar/Avalara. Monitor sales by state. Thresholds: typically $100k or 200 transactions |
| Customs/Duties | 🟠 MEDIUM | Declare real values. Warn customers about potential charges. Use local warehouses |

### Consumer Protection (EU)

| Requirement | Details |
|-------------|---------|
| Right of Withdrawal | 14 days to return, no questions asked. Mandatory. |
| Legal Warranty | 2 years. If product fails, customer can demand repair/replacement/refund |
| Pre-contractual Info | Must show: total price, shipping costs, seller identity, conditions |

### Intellectual Property

| Risk | Severity | Prevention |
|------|----------|------------|
| Counterfeit Products | 🔴 CRITICAL | NEVER sell branded products without authorization. Verify authenticity |
| Patent Infringement | 🔴 HIGH | Search patents before listing "innovative" products from China |
| Copyright (Images) | 🟠 MEDIUM | Use your own photos or get explicit license |

## Financial Risks

### Chargebacks

| Threshold | Consequence |
|-----------|-------------|
| <0.5% | Safe zone |
| 0.5-1% | Warning from processor |
| >1% | Account review, potential restrictions |
| >2% | Account closure, funds held |

**Prevention:**
- 3D Secure for all transactions
- Verify AVS (address verification)
- Reject suspicious orders (mismatched billing/shipping, disposable emails)
- Provide tracking ALWAYS
- Proactive communication reduces disputes 40%
- Refund before dispute when appropriate

### Cash Flow Traps

| Risk | Prevention |
|------|------------|
| PayPal 90-day hold | Diversify processors. Don't depend only on PayPal |
| Negative cycle (pay supplier before receiving payment) | Maintain 3 months operating capital |
| Accumulated returns | Provision 10-15% for refunds in accounting |

### Real Margin Calculation

```
ACTUAL costs to include:
├── Product cost
├── Supplier shipping
├── Payment processor fees (3-4%)
├── Platform fees (if applicable): 5-15%
├── Advertising (CAC): varies widely
├── Returns/refunds (10-15%)
├── Chargebacks (1-2%)
├── Customer service: $0.50-2 per order
├── Software/apps
└── Taxes on profit

If margin < 15% after ALL costs → DANGER ZONE
```

## Operational Risks

### Supplier Problems

| Risk | Severity | Prevention |
|------|----------|------------|
| Supplier disappears | 🔴 HIGH | 2-3 backup suppliers per product |
| Quality varies | 🔴 HIGH | Periodic test orders, monitor customer photos |
| Price changes | 🟠 MEDIUM | Written agreements, safety margin in pricing |
| Ghost stock | 🟠 MEDIUM | Verify stock before promising delivery |

### Shipping

| Issue | Impact | Prevention |
|-------|--------|------------|
| 15-30 day shipping | Cancellations, chargebacks | Be BRUTALLY honest: "2-4 weeks" visible BEFORE purchase |
| Customs delays | Additional 2-4 weeks | Correct declaration, communicate proactively |
| Peak seasons | 30-60 day delays | Pause ads, use local warehouses, checkout warnings |

### Quality Control

| Risk | Prevention |
|------|------------|
| 5-20% defect rate from AliExpress | Factor into margins, clear replacement policy |
| Toxic materials | Require CE, CPSC certifications. Don't sell children's products without verification |
| Product differs from photos | Use YOUR OWN photos, accurate descriptions with measurements |

## Reputational Risks

### Platform Suspensions

| Platform | Common Causes | Recovery |
|----------|---------------|----------|
| Amazon | IP claims, metrics, restricted products | Plan of Action required, 50% don't recover |
| Shopify | Chargebacks, fraud, prohibited products | Clean record essential, if banned start fresh |
| PayPal | Disputes, suspicious activity | Hard to appeal, 180 days to recover funds |
| Facebook Ads | Policy violations, negative feedback | Multiple Business Managers recommended |

### Reviews Impact

| Platform | Effect of Negative Reviews |
|----------|---------------------------|
| Amazon | <4 stars = 80% visibility drop, <3.5 = death |
| Google/Trustpilot | Affects 90% of purchase decisions |
| Social Media | One viral complaint = business end |

## Red Flags — STOP IMMEDIATELY IF:

❌ Real margin <15% after all costs
❌ Supplier doesn't respond within 48h
❌ No tracking available
❌ Product has unverifiable health claims
❌ Product similar to known brand (IP risk)
❌ No way to verify quality
❌ Shipping time >21 days without local warehouse
❌ Supplier asks for payment outside platform
❌ Supplier rating <95%
❌ No clear return policy from supplier

## Minimum Compliance Checklist

### Before Launch
- [ ] Legal entity formed (LLC, SL, etc.)
- [ ] VAT/OSS registration if selling to EU
- [ ] Separate business bank account
- [ ] 2+ payment processors configured
- [ ] Policies: privacy, returns, terms
- [ ] Liability insurance
- [ ] Verified supplier with samples received
- [ ] Tracking confirmed for all shipments
- [ ] Functional customer service system
- [ ] 3 months operating capital

### Monthly
- [ ] Review chargeback ratio
- [ ] Quality audit with test orders
- [ ] Verify tax compliance
- [ ] Analyze real margin per product
- [ ] Customer data backup
- [ ] Review and respond to reviews

### When Problems Arise
- [ ] Document EVERYTHING
- [ ] Respond within 24h
- [ ] Refund before dispute if possible
- [ ] Escalate to lawyer if legal threat
- [ ] Have exit plan if metrics degrade


path: suppliers.md
content: # Supplier Management

## Evaluation Criteria

### Before First Order

| Criteria | Minimum | Ideal |
|----------|---------|-------|
| Rating | >95% | >98% |
| Response Time | <24h | <6h |
| Order Volume | >500 orders | >5000 orders |
| Reviews | >100 with photos | >500 with photos |
| Shipping Options | ePacket | Multiple carriers + local warehouses |
| Return Policy | Clear terms | Flexible, handles defects |

### After Test Orders

| Metric | Track |
|--------|-------|
| Actual Shipping Time | vs promised |
| Tracking Accuracy | Updates regularly? |
| Packaging Quality | Arrived intact? |
| Product Quality | Matches description/photos? |
| Communication | Responsive to issues? |
| Stock Accuracy | Was it actually in stock? |

## Supplier Scoring Template

```
Supplier: _______________
Product: _______________
Date Evaluated: _______________

QUALITY (40 points)
[ ] Product matches description: /10
[ ] Materials as advertised: /10
[ ] Packaging quality: /10
[ ] Defect rate <5%: /10

RELIABILITY (30 points)
[ ] Ships on time: /10
[ ] Stock accuracy: /10
[ ] Tracking updates: /10

COMMUNICATION (20 points)
[ ] Response time <24h: /10
[ ] Problem resolution: /10

PRICING (10 points)
[ ] Competitive price: /5
[ ] Volume discounts available: /5

TOTAL: /100
```

**Score Interpretation:**
- 90-100: Primary supplier
- 75-89: Acceptable backup
- 60-74: Use cautiously
- <60: Avoid

## Red Flags

### Immediate Disqualifiers
- No response within 48h
- Requests payment outside platform
- No tracking provided
- Rating <95%
- Refuses sample orders
- Inconsistent pricing
- Generic product photos (stolen)

### Warning Signs
- Excuses for delays
- "Out of stock" after order placed
- Tracking shows no movement for >7 days
- Quality differs between orders
- Price increases without notice

## Negotiation Templates

### Requesting Samples
```
Hello,

I'm evaluating suppliers for [product] for my store. We expect to order 
[X] units/month initially, scaling to [Y] units/month.

Could you send a sample to:
[Address]

I'll cover shipping costs. Please confirm price and timeline.

Thank you.
```

### Negotiating Volume Discount
```
Hello,

We've been ordering from you for [X months] with good results. 
Our current volume is [X units/month].

We're planning to increase to [Y units/month] and would like to 
discuss volume pricing.

Could you offer a discount for:
- 100+ units/order
- 500+ units/order
- 1000+ units/order

Looking forward to growing our partnership.
```

### Addressing Quality Issue
```
Hello,

Order #[XXX] arrived with quality issues:
- [Describe issue]
- [Attach photos]

This affects [X]% of units in the order.

Please confirm:
1. Will you send replacements?
2. How will you prevent this in future orders?

We value our partnership and want to resolve this promptly.
```

## Backup Supplier Strategy

### For Each Top Product, Maintain:
1. **Primary supplier**: best combination of price, quality, speed
2. **Backup #1**: same product, different supplier, tested with samples
3. **Backup #2**: alternative product (similar function) if primary goes down

### Backup Activation Triggers
- Primary doesn't respond within 48h
- Stock unavailable for >3 days
- Quality drops below acceptable threshold
- Shipping times increase >50%
- Price increases make margin unviable

### Monthly Supplier Health Check
- [ ] Primary supplier still responsive?
- [ ] Prices stable?
- [ ] Quality consistent? (check recent reviews)
- [ ] Shipping times stable?
- [ ] Backup suppliers still available?
- [ ] Any new suppliers worth evaluating?

## Platform-Specific Notes

### AliExpress
- Use Trade Assurance when available
- Verify seller badge (Top Brand, etc.)
- Check negative reviews carefully
- Message before ordering to verify stock
- Best for: testing products, low volume

### CJ Dropshipping
- Better for scaling (warehouses)
- Sourcing service finds alternatives
- Branding options available
- API integration for automation
- Best for: validated products, higher volume

### Alibaba
- MOQ typically 100-500 units
- Best for: private label, bulk inventory
- Always get samples first
- Use Trade Assurance
- Negotiate payment terms (30-60 days)

### Direct Suppliers
- Best margins, most control
- Requires relationship building
- Contract terms essential
- Quality inspection recommended
- Best for: scaled, validated products


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