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Surviving as a small business through a crisis would be tough for any, especially through a global pandemic. Covid-19 swept through so abruptly affecting everything in its path, leaving many businesses in an uncertain balance. As the dust settles and the R rate drops, businesses are left to fend in an unsteady economy left behind by the virus.
Specifically, dropshipping companies have struggled with maintaining their supply chain, the backbone of their business. Most have seen issues with logistical delays and changes in buying habits. Despite this new opportunity have arisen, one being that more people where buying goods online due to the closure of all retail shops.
Despite being through the worst of it, we still have a long way to go. Businesses are beginning to return and starting to find a slight bit of normalcy they had lost from months of furlough. Business owners and those in managerial positions are left to navigate through the struggles of a recession and an imminent depression.
Looking forward, what will life look like for drop-shippers, and what can they do to ensure success post-COVID-19?
1. There will be policy changes
In an attempt to stop the virus in its tracks, many changes to policy and trade regulations have been changed. Therefore, it will be important to keep up to date with these changes and how they may directly affect your business.
Many factories and logistic companies in China came to a standstill because of lockdown restrictions imposed to help tackle the spread of Covid-19. With many products worldwide being supplied from Chinese factories, this had a major impact on the global supply chain. There is no doubt that this would have affected dropshipping business with suppliers originating from china.
All logistic companies have still yet to open, and shipment relies heavily on them, however because of low volume, some cargo terminals have shut down.
2. Online shopping has increased
Online shopping has been increasingly popular throughout the crisis. This may be due to an increase in spare time and money due to the closure of most shops, bars, restaurants and other weekend activities. Also, online shopping was the safest and easiest way to get non-essential good without breaking lockdown.
3. Changes in preferences and consumer buying habits
Many companies during the COVID-19 crisis adapted their approach and made adjustments to provide a service or a product that will help their customers through this hard time. A survey of 700 people showed that people apricated these companies the most as they focused heavily on the needs of the customers.
Hygiene has become a raised standard that will now become expected post-COVID-19. People are more concerned with product safety and cleanliness of their product than ever before, which will be reflected in consumer preferences in times to come.
Therefore, drop shippers will have to carefully consider these preferences, even after the pandemic as they will become essential buying habits. There will be products that will fall out of demand and products as desired as before. This should be analysed to stay prominent in the market.
With these changes in mind drop shippers should:
1. Optimise their product line
2. Market your products accordingly
Considering the products that are most likely to sell, which ones have been growing and which ones have been declining will be useful. Think about what people are using now and make predictions of what might become popular down the line. The coronavirus has given life to a handful of trends like baking, home workouts and renovation. Optimise the products you sell and market them accordingly.