What does the Wuhan coronavirus mean for dropshipping? Since Heropost. works with dropshipping clients we had to ask them how they were faring since this outbreak and if they could highlight certain problems.
Firstly, it means significant delays. Since the priority of the government is public safety. This has caused the inability of all workers and employees to go back to factories and companies to work, which has affected operations in most companies.
Secondly, the logistics companies are in limbo, its difficult and in some circumstances impossible to navigate the new restrictions.
Thirdly, dropshippers depend on the products they sell; traffic delays or restrictions could lead dropshippers having cash flow problems or even worse, bankruptcy. The strengths of dropshippers depend not only on the quality of goods but also on a speedy delivery process which is now restricted.
MISINFORMATION OF THE VIRUS
Fourth, the panic and hysteria surrounding the virus makes dropshipping even worse because people are misinformed leading to pandemonium. According to the CDC, there is no evidence to suggest that the coronavirus has been transmitted through imported goods and packages. Coronaviruses are transmitted person-to-person through respiratory droplets from coughs or sneezes, they generally have poor survival on surfaces.
SUPPLY CHAIN PROCESS
Fifth, in a nutshell, the coronavirus has compromised the entire supply chain. Sellers should expect increased freight costs. Even if they do find a way, it would be costly. Factories are closed and even the delivery process is at a standstill.
What should you do as a dropshipping store owner in order to minimize the possible negative effects of the Wuhan coronavirus on your business?
1. Contact your dropshipping suppliers
Ali Dropshipping states. First of all, contact the dropshipping suppliers you are dealing with. Ask them the current what is the situation there. If they work, as usual, that’s OK. If not, you can ask them when they are supposed to go back to work or if they know suppliers who can provide you with similar products from warehouses outside of China.
2. Pause your ad campaigns
It will take a while for Chinese suppliers to start accepting and processing your orders. That’s why we recommend that you decrease the amount of paid advertising, thereby preventing your online store from receiving a large number of orders. It is important to do this immediately especially if you know you have high order rates or cashflow problems may occur.
3. Email your store visitors informing them that it will take longer for you to process their orders and dispatch their packages
Ali Dropshipping states. Place an informational banner on your website to make sure every visitor sees your company message! This is important because it alerts your customer about the current logistical problems.
4. Contact your clients who have pending orders
If you have orders to fill that are of extreme importance and some of your customers won’t receive their parcels shipped from China on time, contact them and inform them about possible delays. Offer a discount or a refund if there are any issues.
5. Look for the suppliers who have warehouses in Europe or US (VERY IMPORTANT)
Ali Dropshipping states, look for dropshipping suppliers who have warehouses not only in China because it will allow you to be able to avoid major delivery delays and hopefully, even cut down the delivery time. Our clients that are dropshippers state that you can use the AliDropship Plugin’s built-in products database. It will give you the list of vendors who send products from any country and this is more convenient for your online store.