Views:411 Author:Site Editor Publish Time: 2021-05-11 Origin:Site
Since we first heard about COVID-19, the pandemic has killed more than 1 million people and infected more than 30 million people in 190 countries. And there are signs that a new wave of epidemics will occur in the winter, which is very disturbing. Many things about the virus remain unclear. But a basic fact is clear that the world is not ready. In such a severe situation, the operation of E-commerce is under a strong impact. Dropshipping suppliers and owners have started to panic whether their business will stop.
Dropshipping at Risk
By its nature, dropshipping business is a model that depends on the effective production, warehousing and transportation of products. People in this business feel that the effect of coronavirus will likely affect the cross-border dropshipping business, because almost a third of the world’s production occurs in China. But we know that dropshipping mode is e-commerce without inventory. The people in this business sell goods that are shipped from the supplier’s warehouse directly to the shipping address of customers. And e-commerce dropshipping mode is hot in the e-commerce industry and it is a popular business model. Now it accounts for a third of e-commerce business.
Of course, the obvious disadvantage of dropshipping is that e-commerce store owners cannot control their inventory and the shipping process. They focus on sales and marketing, and goods are shipped anywhere from the supplier’s warehouse, where is located in many places of the globe. A dropshipping seller might use some type of CRM or retail operations platform behind the virtual storefront that makes their goods to the hands of customers, but they don’t manage much. International emergencies such as the outbreak of the coronavirus often highlight the relationship of the global interdependency of commerce. After all, Covid-19 is a worldwide pandemic. As the virus spreads, it has been causing chaos on the international markets and business.
For businesses that rely on China and international transport system such as dropshipping, the influences are obvious. Many countries set up surveillance, prevention and control measures to prevent the epidemic. As expected, everything is basically at a standstill including drop shipping suppliers and sellers. During the period of quarantine measures, the virus indeed affects all business including e-commerce dropshipping business.
How does the Virus Affect Dropshipping Business?
The founder of Easy China Warehouse - Brian Miller explained the situation on that ground in three ways that Labor shortages, new health and safety requirements, and subcomponent and raw material shortages. He notes that the situation is made worse by the fact that most of employees in China are migrant workers who live in small villages or cities. The quarantine measures have made it impossible for the workers to leave home to go out for continuous work even if they wanted to. He added that factories have the extra burden of putting in place measures such as providing masks, gloves hand sanitizers. It led to delays in factory openings since inspectors have first to ensure that the protection measures are in place. These problems result in less production and the shortage of raw materials and subcomponents of factories.
Luckily the protection measures of China are very good, until now, the dropshipping factories and businesses have slowly recovered to the normal.