Last Updated on September 1, 2023 by David
Guest Post by Erin Merrill
During the COVID-19 pandemic the way we live life and do business is changing. Learn how you can keep your dropshipping company afloat amid the outbreak.
COVID-19 has impacted the lives of billions of people — and it will continue to do so. No industry is immune to the fallout, and retailers have suffered huge hits in the face of the global lockdown measures. However, drop-ship business owners are in a better position than those who own brick-and-mortar stores.
Countries’ responses to COVID-19 have varied according to their specific disease transmission and progression rate, but in almost all cases the products businesses are allowed to ship have been curtailed. With a limit on the items you’re allowed to dropship, you’re going to need to think creatively during the pandemic if you want to keep your business in the black.
If you’re looking for tips to keep the revenue coming in, keep reading.
Look at Your Financial Aid and Cost-Cutting Options
Government bailouts are being issued at federal, state, and local levels in the United States. Several private companies have also stepped up to the plate, including Amazon and Facebook. Check what is available in your area for your business size. Salary protection, daily costs, and other expenses are covered in the various plans.
Wherever possible, you should also try to streamline your expenditure. Discuss lowering rates with your shipping and payment partners, automate tasks and operations as much as you can, audit your administrative protocols, and change your packaging if it will help reduce costs.
Find New and Alternate Suppliers
If you can find suppliers who deliver or sell the same products for less you could make significant savings. At the same time, keep your eyes open for new niche products that are launching on the e-commerce market.
As the world faces lockdown and self-quarantine measures more manufacturers than ever before are recognizing the potential of online sales. That means you could discover some hidden gems in novel items, which could generate huge revenue for your dropshipping enterprise.
Foster Good Relationships with Sourcing Agents
As a dropshipper, the relationships that you have with sourcing agents have always been important. They represent you in different geographical locations and make the logistics of running your operations so much easier.
With increased challenges in delivering and receiving goods during COVID-19, you need high-performing sourcing agents more than ever. If you have good relations and are happy with your current agents, make sure they feel appreciated. If you feel like you need a new perspective, find the best candidates, and then get honest opinions from the companies they’re already working for.
Consider Pivoting Your Business
If you can’t ship the items that you usually supply or they are simply not in demand, think about what people are buying. If you can start providing sanitizing products or face masks that could become a very lucrative revenue stream.
Pivoting may also mean thinking out the box and expanding your services in line with what you sell. Makeup companies can provide online tutorials, homeware dealers could do a little free interior décor consulting, and most e-commerce companies could use the time to make their sites more attractive, interactive, and user-friendly. You could even use sales apps to get to know your customers better so that you can deliver content that they want to see.
On the subject of customers and site users, make sure you’ve sent out emails that frankly and honestly explain the difficulties you’re experiencing. Let them know that deliveries may be subject to delays or that domestic shipping restrictions in their countries may not allow the goods to pass through the airports temporarily. Your customers will appreciate your candor and are likely to understand given the unique situation that we find ourselves in now.
Review Your Advertising and Marketing Strategies
Take a good look at how much you’re spending on your marketing and advertising campaigns. Make your money work harder not smarter by running ads less frequently but on key platforms. For example, if a lot of your customers use a particular payment method, you could advertise there.
Discounts, lower prices when people buy multiple items, and other promotions are also an excellent idea. Don’t forget about organic promotion either and make regular social media and blog posts to drum up interest in your brand.
Follow the social media channels of businesses that are successful in your field, and let their content inspire yours. Do some research on the time of day that you should post too so that you have maximum impact.
Good old-fashioned email is also a very valuable marketing tool, and one that’s easy to overlook in a world so saturated with social platforms. You’ve got the time to create detailed email sequence strategies now, so take advantage of it. Upselling sequences, chatbots, and marketing automation platforms can also deliver good results, so be sure to check them out.
Concentrate on Traffic, Not Sales
Generating traffic to your site can lead to more conversions and successful sales. That’s why attractive, interactive websites and storefronts are always important — and why, right now, you should leverage the sense of wanting to help with the COVID-19 crisis that most people are feeling.
Partner up with legitimate donor organizations who are helping with pandemic relief efforts, sell at break-even point, and then donate the profits to your collaborating donors. Let your customers know where the money went via email, social media, or a pop-up message on your site.
People will feel good about donating money to a worthy cause and feel positive towards your brand. They’re more likely to visit again, develop loyalty to your store, and make future purchases, thus boosting your long-term revenue.
Closing Thoughts: Focus on What is Possible
During this very strange time, people are having to make serious adjustments to the way they live their lives and run their businesses. There’s a lot that is not possible right now — but there is also a lot that is.
Focus on what you can do, and not what you can’t. Use the downtime wisely to invest in yourself and develop your dropshipping business skills, keep your company trading as briskly as possible, and remember that this won’t last forever. When the pandemic finally passes, you’ll be in a strong position to face whatever comes next.
About Re:amaze
Re:amaze is a modern helpdesk and customer messaging platform designed to help eCommerce businesses boost customer happiness and revenue. Re:amaze allows all customer-oriented teams to work together in a shared inbox through email, social, SMS, voice, and live chat. Re:amaze also comes packaged with automated messaging and chatbots so eCommerce brands can succeed at the front lines of conversational commerce.