Strategy For Dropshipping Business During COVID-19 Pandemic

Most dropshippers ask, “what should I do during the outbreak of coronavirus? How are factories going to reopen? “1. 1. What is the current state of the epidemic of Coronavirus?

To order to better understand the current situation, it should relate to past data from a similar outbreak which the Coronavirus might support. H1N1 was present in about 60,8 million people, causing 274,304 hospitalizations, and 12,469 US deaths and SARS 8,096 confirmed cases and 774 deaths. Coronavirus is a new virus strain of significantly stronger infectivity.

2. How many plants have returned to work?

There are no official information and it depends on the following 3 factors whether a factory will resume work.

The severity of the disease in the area of the factory. The restart of work in any factory needs government approval. In order to receive this permission, appropriate anti-epidemic materials and anti-epidemic programs must be planned.

Employee quality. Owing to the Chinese New Year, most workers have returned to their hometown and remain stuck there to restrict human immigration and the spread of the epidemic. At present, only a limited number of the people return to their workplace and need to self-quarantine at the factory place for at least a week.

Raw materials are available. Due to the national shutdown, even if the factories are running again, issues will occur, for example not purchasing raw materials, the consumer can not get orders because they have not resumed work or the unable to send packs as national logistics are not yet operational.

Given that HyperSKU has helped dropshippers locate factories over these last two weeks, only less than 20 percent of plants are back and can process orders. The proportion of workers who can resume work on February 20 is expected to not reach 35 percent. Following the resumption of work in factories, the orders will still need to be settled and sorted during this long period. In essence, development should begin by March.

One of the largest in China, the company resumed its work on Febrauary 10, started manufacturing on February 17, and the first shipment could be delivered on March 10.

3. How many AliExpress sellers have returned to work?

AliExpress expanded the shipping period, as you can see from AliExpress. AliExpress sellers are spread across the nation, primarily in coastal areas, with the provinces of Guangdong and Zhejiang representing 60–70 percent of their region, with the greatest proportion of AliExpress sellers. Both provinces are in high-outbreak zones, and the majority of businesses (sellers) are not allowed to return to work. Many of them are in the energy business. The following is a view of the HyperSKU industrial belt. By comparing the following images you can understand the production area of the goods you sell and the extent of the epidemic for each region.

According to the preliminary inquiry by HyperSKU into different AliExpress sellers, approximately 40–50% of sellers have started remote offices. But if the government does not restore the business and the warehouse, it is not delivered, even if the warehouse is in stock. Please check carefully with your seller if your area and warehouse will start working.

4. When can we expect the resuming work to resume and the restauration of production capacity?

This epidemic is a major challenge for the economy of China. It is estimated that by 2020, it will impact at least 2 percent of national GDP conservatively. Therefore, the government implements steps to identify the regions in line with the magnitude of the outbreak and to ensure that factories and companies resume work at the earliest opportunity. But what everyone needs to understand is that many sectors are far more relevant from the government’s viewpoint than the development and selling of consumer goods, for example the pharmaceutical industry, large-scale manufacturing, communications and electricity, which are extremely understandable.

Fabrics linked to the dropshipping industry would therefore not be preferentially opened or receive government funding.

5. Which factors influence distribution efficiency?

(1) Domestic production, refer kindly to the preceding portion.

(2) Calendar for the re-start of work, please refer to section above.

(3) Logistics at home. Since the provinces and cities have a corresponding blocking policy to help a highly virus-infected area, the government is also requiring the capacities of many large carriers. Furthermore, several cargo firms, including truck drivers, have not resumed work. Currently, domestic capacity for land transport is inadequate. Only domestic air freight operates normally with a three-day capacity. It is important to remember that the cost of large air freight is high. For instance, a 450 g product was originally shipped for under US$ 0.50. Because of the volume of 26.5 * 13.5 * 13.5 cm, the cost of domestic aviation was as much as US $3.

(4) Activities of the factory. Please confirm that your officer has approved the warehouse to resume work, otherwise the closure is likely at any time. Test also the number of packages which can be handled by the warehouse every day. HyperSKU has three warehouses in service, and can handle just 5,000 orders per day. It can normally handle 30,000 orders a day.

(5) Logistics Worldwide. Most of the continental China-outward flights have been canceled but the Hong Kong flights continue to operate with sufficient capacity. The transport from Shenzhen to Hong Kong is also performed on a regular basis, which does not affect the export of domestic products. There are now fewer shipments and no power shortage. No packages from China are currently prohibited from entering any foreign country, and all distribution stage has been completed as normal. During the past two weeks, the shipping time of HyperSKU was ten days, so the outbreak has no effect on international transport.

6. Is the package containing germs?

The short answer is No, but for more information see the official CDC website description: https:/ spm = a272g.13946375.k63.67a64891nMuVfp#public-health-interview 7 .. What is Dropshipper’s strategy?

(1) Range of products Stop testing new products. In the event that the epidemic will not progress explicitly, we suggest that blind new goods be not created, the supply chain will undoubtedly fail to keep up, thus reducing promotional costs and potentially damaging the FB promotional accounts and Paypal.

Avoid excessively large goods. Don’t choose a high-volume product, because transportation costs would probably absorb your benefits.

Find reliable suppliers who can check the quality of the goods in real time. Please note that the inventory available may not be accessible for the next hour.

(2) Buying Ensure you have sufficient knowledge of the vendors and that long-term collaboration can be expected.

Have a plan for backup. At least find an alternate supplier (agent) and give it some of your orders to be safe if another choice is needed. Even if there is no outbreak, other accidents can occur. This is your preparedness strategy for disasters. For each product from different regions Walmart will have more than two alternative suppliers.

Hold stock. Hold stock. For items which are continuously marketed, agreements with the storage agent are suggested. Try to buy as much stock as you have on the market now, because the goods that you sell will be sold by other people and we scramble for the same goods. You’ll have to stop selling as soon as someone buys the stock. And the time it is time for the plant to restart operation is unpredictable and the best approach is to be able to stock itself.

(3) Notification Avoid testing new announcement techniques. It is recommended that a conservative strategy be followed to retain the original campaign and not try new campaigns.

Adjust your budget. Change your budget. Measure the advertising budget with the average quantity and inventory ratio. Reduce the advertising budget accordingly if possible.

(4) Get imaginative promotion. Under the assumption of ample inventory, you can take other marketing tactics like “buy one get one free” into account, which tend to decrease the cost of logistics.

Discover new territories. Your rivals may have stopped advertising under the assumption of a sufficient inventory. This could be a good occasion for you to extend your initiative to new areas at this time. Global shipping is not affected, after all.

Be frank. Be frank. If the order can not be fulfilled, please contact the customer immediately to adjust the requirements of the other party and to provide some discounts and online coupons, and, if necessary, a timely refund. I assume customer complaints are the last thing you want to see.

(5) Time of arrival Provide a longer delivery time. Enhance the delivery time promised to 19 days, give the supplier time to answer the order, and avoid undermining the false pledge on your FB account. This may may conversion rates, but keep the company at least running.

Follow up. Give up. Regularly check the supplier’s delivery time and the logistics status.

Add FAQs and banner notices about production and delivery time to your website.

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