How Coronavirus is Affecting Dropshippers

Posted on:2020-03-21       View:197

With the continued worldwide spread of the coronavirus also known as Covin 19, precautions are being implemented around the world to keep local and international populations safe. So far this has included steps like travel restrictions, countries going on lockdown and factories shutting down. Public health and safety are the number one concern here and that's why these steps are being taken. How those safety measures could affect you overload dropshipping businesses. This can feel like a scary and uncertain time.


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Manufacturers, suppliers and logistics companies are all facing unprecedented disruptions to their operations

We want to give you the information that you need to be as prepared as possible to handle this uncertainty. The bottom line is manufacturers, suppliers and logistics companies are all facing unprecedented disruptions to their operations that have implications for businesses big and small including your own dropshipping businesses.


Content

  • What's going on in China

  • Europe/North America

  • 7 things you can do right now


What's going on in China?

China due to the coronavirus factory shutdowns took place throughout China in January and February. Some factories are reopening, but it's too early to predict when all factories will be operation back in business as normal at this stage. 

It's important to note that while some Chinese factories are coming back online, there are logistics companies that have reduced or paused their operations. Factories depend on these logistics companies to carry out the rest of the shipment process. In addition, there are cargo terminals shutting down due to low volume. These cargo terminals are normally where products come and are collected before being shipped. Air transportation is also being impacted, many dedicated cargo services are being canceled, in addition, there's been a reduction in passenger services which also carry cargo. 

The bottom line here is that yes e-packet is definitely being affected. However, not for every supplier everywhere. There are disruptions to the Chinese supply chain but what's really difficult to tell you is whether particular suppliers are themselves disrupted. Some are and some aren't.


Europe/North America

With this, in mind, a lot of drop shippers are thinking about shipping from warehouses in the US and North America. Right now many European countries are going on lockdown and this means that working places like warehouses are also being shut down.

So if you plan to dropship products from China still do your homework ask suppliers if they have enough stock to fulfill orders and if they're able to fulfill orders given the logistic situation on the ground where they're. At additionally, it's hard to tell what that means for cargo services with this lockdown.

In the United States, the situation is also changing day to day, travel restrictions were recently placed on people coming from Europe to the United States, it's not clear how those travel restrictions will affect cargo services.


7 things you can do right now

This paints a really challenging picture for anyone who's trying to get into entrepreneurship. Right now, if you don't think this is the right time for you to start a business, you're not crazy. But if you think you can use this time to set the foundations for a strong business that you open later. Well, you're not crazy either. We're here for you to help you if that's the path you decide to take. here are 7 things that you can do in this situation. 


  1. Prepare for delays

    If you're new to dropshipping and you don't have a personal relationship with your supplier, such that you can ask for day-to-day updates Facebook. We recommend that you cut back on Facebook ad spend in an effort to prepare for these unpredictable delays. These delays are the effect of those disruptions to transportation and cargo services that I mentioned earlier, and repeat these Lay's are also the effect of measures being taken to protect human lives. So they're really important, always check with your supplier, but assume in this time that items are not going to be shipped as quickly as usual. Even if your products are being shipped on time realize that there's still the potential for something to change along the way, because the situation is changing on a daily basis.

  2. Be honest with your customers

    You have to make sure to do it during this time and be honest with your customers. This is the time when great customer service is going to be an asset to your business. You really need to be upfront with your customers those people who have already bought items that there could be serious delays to those items getting to their doorstep, tell them about these delays and be prepared to offer refunds for their purchases. The whole world knows that this is going on, and they're willing to be patient with businesses that are upfront with them about the challenges they're facing.

  3. Learn

    This third action item is for the newbie's if you're thinking about launching a store right now, and you're wondering what to do the very best thing you can do right now, that is learning. With the current situation, it's understandable if you feel demotivated. However, what you have on your hands now is time, and you can use that time to learn skills that you really need to grow and scale a business later. On the subject of learning six-figure drop shipper Chris Wayne had this to say, take this time to learn as much as you can about dropshipping, paid to advertise and also best practices around store design and branding because once this all passes you will be in a great position to hit the ground running.

  4. Grow social media channels

    You can do to grow your business in this time that is work on your organic social media channels I'm talking about Instagram, Pinterest, Twitter, Facebook, TikTok. 

    Whatever it is these channels need a lot of time to nurture and grow properly, but the exciting thing is that if you'd put in that work which you can do for free. You'll have a large customer base to advertise to without spending a dime later on. So if you haven't already taken this time to establish and nurture social media channels for your business. If you're very new you can still take advantage of this tactic. You can do is use social media to validate your business ideas. 

    Drop shippers Cory and Rodney did this. They created different Instagram accounts to see which Instagram accounts and different niches got the most engagement. Now this was a time-consuming process, but it cost them nothing but time, so if you're in the situation where you have the time at home, and you want to put in the work to build s solid business later, consider the strategy.

  5. Start email marketing

    There are tons of flows that you can automate that will nurture someone from a customer who just came to your site to browse to a repeat buyer. Drop shippers overlook email marketing tactics because it doesn't have that kind of instantaneous data feedback loop that Facebook ads had. However, email marketing is free and it's so powerful.

  6. Write blog posts and SEO-optimize your site

    Search engine optimization can bring a ton of traffic to your store, but a lot of drop shippers overlook this tactic. If you have the time, do the research now about how you can SEO optimize your store, and once you've made little tweaks get into blogging, use blog content as a way to draw new visitors to your store for free.

  7. Budget for your business

    If you can't start spending money on ads start saving money for ads, maybe you already have some money and you can budget it away or maybe you would like to make a few more dollars on the side before you start launching your business. 

    Remember that you can go on to sites like up work and Fiverr and find creative ways to sell your services to make a few extra dollars, even during this time. 

    You can help transcribe video into text, you can translate, you can do some graphic design, just look for skill that you can use while you're at home to make a few extra dollars. So you have a pool of money that you're comfortable starting with when you're ready to launch your business later.