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The Situation of Dropshipping Business during Coronavirus

Views: 396     Author: Site Editor     Publish Time: 2020-12-08      Origin: Site

Many dropshipping companies will panic when the coronavirus breaks out, because it makes their business and revenue more challenging. Next, we will talk about the development trend of dropshipping service when the new coronavirus is becoming more and more serious.



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1.When Can We Expect the Resumption of Dropshipping?

The coronavirus in this year is a great test for the world economy, including the most successful dropshipping stores. The Chinese government has gradually taken measures to arranged for some companies to resume their work as soon as possible. However, from the government's point of view, the recovery of the pharmaceutical industry, large-scale manufacturing industry and communication industry is far more important than that of the general consumer goods industry. Therefore, even the best dropshipping companies will not get preferential treatment.



2.What Factors Affect the Efficiency of Delivery?

The first factors that affect the delivery efficiency are the domestic production and recovery schedule, as well as the domestic logistics. In order to help some areas with serious virus infection, the government will requisition many large transport companies like online dropshipping business, which leads to insufficient domestic transport capacity. As a result, only air transport can operate normally, but the cost of large air cargo is very high.


dropshipping companies

Another influencing factor is warehouse business. Before running, the real dropship companies should confirm whether the warehouse is approved by the government to resume work, otherwise it will be shut down. Moreover, the number of parcels handled by the warehouse should be checked every day.


The last factor is international logistics. Many flights from China to other countries have been cancelled. Luckily, there is still enough capacity for flights departing from Hong Kong, and the silk road dropshipping from Shenzhen to Hong Kong is also carried out regularly, which will not affect the export of domestic goods. Although the shipment volume is reduced now, there is no shortage of production capacity.



3. What Strategy Should Dropshipper Take?

(1) Product Selection

First of all, you should avoid using new products. If new dropshipping digital products are developed in this epidemic, the supply chains may not keep up, which will cause waste of costs. Secondly, you should avoid oversized products, or they will increase your logistics costs and reduce your profits. Finally, you must find trustworthy international dropshipping suppliers, because there is no way to determine the production and quantity of inventory during the epidemic.


dropshipping companies

(2) Purchasing

To ensure that you have enough knowledge of your suppliers, and whether you can cooperate with them for a long time, you must have a backup plan. So you'd better find substitute oberlo verified suppliers and give them a part of your order as your security. For hot selling products, try to get more inventory because everyone is rushing to buy the same product. If the inventory is insufficient, sales must be stopped. Since the time for the factory to resume work is uncertain, so it is safest to have sufficient inventory.


(3) Advertisement

To avoid testing new advertising strategies, it is best to adopt a conservative plan for your one product dropshipping store, keeping the original effect and adjusting the budget according to the daily order and inventory quantity.

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