How COVID-19 is changing the world in the past few months? Every aspect of our lives has been affected. How we live, work and interact with each other, how we move around and travel.
Millions of people around the world have lost their jobs amid the current Covid-19 crisis. Alex Niles, 41, is one of the many Americans who applied for unemployment benefits when the restaurant where he worked had to close. Until then, Alex was making a steady living mostly from cash tips and weekly wages, supporting his family of four. He and his wife have two children ages nine and ten years old. Even though Alex could tell that business was dropping off dramatically, he says it still came as a shock to him when he was laid off.(According to the U.S. Bureau of Labor Statistics’ jobs report, roughly 17.75 million Americans were unemployed in June 2020)
While it feels like doom and gloom, there’s some good news for dropshippers or who wants to start dropshipping: Customers are browsing more online today than they did pre-pandemic.
You’re facing tons of challenges as a dropshipper during this pandemic. But you can find opportunities even in trying times. Now’s the time to make changes, improve your business and find a way to stay afloat. Fortunately, there are a few ways to prepare your business for the challenges of dropshipping during COVID-19:
Find Domestic Suppliers
Fewer flights are available to transport goods because some suppliers and delivery companies have not been able to operate at full capacity. Do you want your buyers to get their orders as quickly as possible? Do you want your customers to receive their products on the same day? Then choose domestic suppliers.
- No dealing with Import Duties
Since you are sourcing products from within the country itself, you don’t have to pay any tariffs. You are not procuring imported products, so no question of shelling out import duties.
- Short Supply Chain
Domestic suppliers have a short supply chain, which has several advantages. For instance, a short supply chain drastically reduces the number of intermediaries between the supplier and buyer. As a result, products carry a lower risk of damage and theft.
- Lower Transportation Cost
A domestic supplier serves a specific region or country. No complex supply chain, hence reduced transportation cost is perhaps its biggest benefit. So you have to bear minimum shipping cost when dealing with domestic suppliers.
Communicate with your supplier: Keep the lines of communication open. Ask about any anticipated interruptions and their turnaround times. Try working out a deal where you order more products in advance or only pay when the order actually ships.
Choose right Products for Dropshipping During COVID-19
Few dropshippers are advertising right now because of our uncertain economy. I understand that, but the dip in competition means you’ll see lower costs and more impressions when you advertise. It’s a dropshipper’s dream!
Advertise your products on Google Ads, Facebook, Instagram, or YouTube.But remember to sell products that people want during a pandemic. Ads about drinking at bars or dancing at nightclubs will go over like a lead balloon.
- Change you products or your market
Customers aren’t spending as much money on items like:
- Suitcases and bags
If you see a troubling dip in orders, change products ASAP. Here’s some good ideas of where people are spending their money during the pandemic:
- Home fitness equipment, supplies and yoga Mats.
- Home Office Products, like headphones, laptops, blue blocker glasses, Webcam
- Cleaning and sanitation supplies & paper Soap
- Board Games,Puzzles, Creative & DIY Products
- Kitchen appliances, like bread machines
In conclusion, don’t get me wrong: dropshipping during COVID-19 has unique challenges. However, we can find opportunities even in the darkest of times. Your business serves customers’ needs. As those needs change, your business should change, too. While we’re living in an uncertain world, these tips will bring a dose of predictability back to your dropshipping business. As a dropshipper, that means modifying your logistics, marketing, products, and cash flow management for this new reality.