COVID-19 has affected everything in e-commerce. From decreased orders to supply chain problems to standstill manufacturing, dropshipping is no walk in the park in 2020.
While it feels like doom and gloom, there’s some good news for dropshippers on the horizon: e-commerce spiked by 93% in May 2020. Customers are browsing more online today than they did pre-pandemic—and more of them are converting, too.
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.
We don’t know when or if “normal” will return, so agile dropshippers will be the winners during COVID-19. I believe dropshippers can not only survive, but thrive, during a pandemic with the right approach. I recommend following these 4 best practices ASAP to get more traction.
As e-commerce shipping costs surge by 60% in some areas, dropshippers are seeing diminished margins. This is happening because:
There’s been a huge increase in e-commerce demand, which would normally be great! But with limited delivery resources, dropshippers are left footing a higher bill and longer lead times for shipping and logistics.
This isn’t your fault as a dropshipper. But, as you probably know, any kink in the supply chain trickles down and becomes your problem, too.
Fortunately, there are a few ways to prepare your business for the challenges of dropshipping during COVID-19:
Marketing practices from 2019 just won’t cut it in 2020. Everything from your website to your social media needs to address customers’ new reality if you want to make more sales.
Lean heavily into organic social media right now. That means:
You’re collecting email addresses, right? Use them! Email marketing is an owned media channel, which means you don’t have to play by a third-party’s rules here. You own the data and you own the message—embrace it.
Segment and automate as much of your campaigns as you can. The more segmented your list, the more you can personalize your message. And since personalized emails are 6X more effective, segmentation is definitely worth it.
Use your email list to build loyalty, announce specials, thank customers, and solidify an actual e-commerce brand. Dropshippers who invest in email stand to see more short-term sales as well as long-term loyalty.
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. Get ROI by advertising where there’s demand.
Stand out during the pandemic with these smart tactics to increase e-commerce sales:
Dropshipping is all about customer demand. But whatever you knew about consumer behavior flipped overnight during the pandemic. People are behaving differently and demanding different products. Dropshippers have to adjust their operation to stay agile and fill these needs.
Unfortunately, it looks like COVID-19 will be with us for a while. Invest in a little product research now to see your future for the rest of 2020.
How are your products performing right now? Do you need to change products or your market?
Customers aren’t spending as much money on items like:
If you see a troubling dip in orders, change products ASAP. Here’s a snapshot of where people are spending their money during the pandemic:
Dropshipping products aren’t stagnant. You have the freedom to add or drop products based on ROI. Check your stats and don’t be afraid to pivot—staying agile could save your business.
Dropshipping during COVID-19 calls for good cash flow management.
It seems like our situation changes on a weekly, if not daily, basis. Dropshippers need to manage their working capital very, very carefully to stay in business. If cash is tight right now, consider:
Don’t get me wrong: dropshipping during COVID-19 has unique challenges. However, we can find opportunities even in the darkest of times. As a dropshipper, that means modifying your logistics, marketing, products, and cash flow management for this new reality.
Your business serves customers’ needs. As those needs change, your business should change, too. While we’re living in an uncertain world, these 4 tips will bring a dose of predictability back to your dropshipping business.
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