The outbreak of novel coronavirus (COVID-19) has enormously impacted the world of dropshipping business as the world is under quarantine to combat the current pandemic situation, and all forms of businesses have stopped working temporarily. If you run a dropshipping business then there is no wonder that you’ve to temporarily withdraw it from the market just like other drop shippers.
This surely is an overwhelming situation for everyone around the globe and temporary withdrawal from the market is surely the wisest decision that any budding or experienced entrepreneur can make as it is the best possible way to get control over this global outbreak.
In this article, we will discuss how the coronavirus outbreak has impacted the dropshipping business?
Well, before understanding the implication of coronavirus on dropshipping, first, you need to understand how does dropshipping business works.
What is a dropshipping business?
Dropshipping business is a retail fulfilment method where the store completes the order by purchasing it from the third-party & shipping directly to the customer. The main factor of dropshipping business is that they don’t hold any inventory. As soon as they receive an order, they contact the manufacturers & shipped the item to the customers. One of the main benefits of running a dropshipping business is that you don’t have to liquid your funds in holding inventory & you can use those funds in promoting your business.
So, now that we know about the working of dropshipping business, let’s discuss
what does coronavirus mean for dropshipping?
The Novel coronavirus originated in the Wuhan, China but within a few months, it has reached every corner of the world. As more and more people are being affected by this pandemic situation, a shift has taken place in a way the world operates.
We all know that coronavirus has forced the world to shut down temporarily to control its global spread which implies significant delays. The government of various countries has announced complete lockdown as a control measure which disrupts the movement of products from the country of origin to the shipping address.
Also, major manufacturing units are temporarily closed, and since a drop shipper doesn’t hold any inventory by itself so to keep running the dropshipping in such crisis becomes next to impossible. So before you run targeted ads & take orders, you need to consider these things. The world is under quarantine and there is nothing you can do unless the government release the lockdown and the world gets back to work. The whole process of dropshipping involves workers, logistics, etc. who are currently not allowed to work until the coronavirus pandemic takes the edge off so you are bound to face inevitable delays.
Amidst coronavirus pandemic, the next major factor that is impacting the dropshipping business is uncertainty (of budget, planning, delivery etc.) The outbreak has taken the toll over people around the globe so navigating resources through uncertainty is causing a major problem.
The situation is highly unfavourable for the drop shippers which makes it difficult to survive. Taking the right decision & careful use of resources is highly crucial at this point. If you want to make your dropshipping business to survive then you need to speculate the situation & government orders first.
The current COVID-19 situation has crippled almost every business including dropshipping but you can always make your way through it without making your dropshipping suffer by managing it effectively.
We’ve rounded up a few effective ways in which you can manage your dropshipping business effectively amid coronavirus outbreak:
- Keep your customers informed
Well, one of the most important thing that you should consider doing is informing your customers about the status of their order. We all know that shipments are being delayed due to disruption in the working of logistics & supply chain but as a drop shipper, it becomes your duty to keep your customers informed. The orders are bound to get delayed so customers must know about it otherwise it may frustrate your customers and they may end up not buying from you in the future.
- Reduce the paid advertising
The next thing that you need to take into consideration is reducing the paid advertisements. Every drop shipper is required to run targeted ads to boost the sales of the product. Running campaigns in this pandemic situation would be worthless as people in the affected countries are not doing online purchase in a usual manner so you won’t be able to attract many customers. Also, draining huge sum of money during this crisis isn’t worth as you won’t be able to process those orders until the quarantine period ends.
- Reduce the fear of customers
The next thing that you should consider doing is making your customers aware of the fact that the virus doesn’t stay on the surface for longer. Due to the fear of coronavirus, most people are refraining from buying things online so you need to let them know that all the packages are being disinfected before delivering it to their respective buyers.
- Contact your suppliers
Don’t forget to contact your suppliers to know whether they have started working or not. If your suppliers are currently staying in quarantine then you can ask them about the other suppliers who can provide you with similar products.
- Modify your dropshipping strategy
With everything being disrupted amid coronavirus pandemic, you should consider modifying your dropshipping strategy as it will help you in lowering down your losses. By creating a revised strategy, you can aim at boosting both customer satisfaction & revenues. Don’t forget to analyse the key metrics to understand how can you cope up with the current pandemic situation.
So, these are a few things that you can consider doing to manage your dropshipping business during the crisis.
The world of dropshipping business has immensely impacted by the novel coronavirus but by taking adopting effective strategies, you can surely resume operating your dropshipping business normally.