E-commerce has been on the rise for years, but nobody could have predicted just how much online shopping would increase in the early 2020s. Of course, the reason for the recent E-commerce growth is down to the COVID-19 pandemic causing people to stay at home. Over the last year or so, more and more entrepreneurs have been setting up E-commerce ventures.
One of the simplest and best online business models is that of dropshipping. The great thing about the dropshipping model is all of the manufacturing and order fulfillment is handled automatically, freeing you up to focus on other areas of your business, like marketing. As we head into a post-pandemic world, the E-commerce and dropshipping boom is continuing. So, here’s a look at how you can capitalize on it.
Supply Chain Issues During COVID-19
The last year hasn’t been easy for dropshippers due to supply chain issues. Because you’re at the mercy of third parties for making products and sending them to your customers, when there are problems like supply chain issues, it can create major troubles for your business. In a normal world, dropshipping supply chain problems aren’t often an issue. But since the arrival of the COVID-19 pandemic, we haven’t been living in normalcy and there have been many supply chain woes affecting dropshippers.
The pandemic and the lockdowns have caused workers to be absent from work due to self-isolation requirements or symptoms, which means manufacturing facilities in virtually all countries have been hit with slow production or the temporary closure of facilities. That has led to manufacturing losses, delayed shipments, and a decrease in orders; all of which have a significant impact on a dropshipping business. After all, if you cannot get products manufactured and delivered, you cannot earn money from sales and you could lose loyal customers.
How Dropshippers Have Been Handling Problems
The best entrepreneurs are those that always see problems as potential opportunities. So, even in the face of such a far-reaching and serious problem like COVID-19 and the lockdowns imposed as a result of the pandemic, many dropshippers have been finding ways to be successful. One way that e-commerce business owners have changed their dropshipping models is by using domestic dropshipping suppliers.
Most of the supply issues dropshippers have been facing are due to the fact that most products are manufactured in far-away places like China. It’s not only the manufacturing and shipping from specific countries like China that have caused delays. It is also the knock-on effect of traveling through other countries and overseas. So, by switching to domestic suppliers, dropshippers have been able to ensure continued deliveries of their products to their customers.
In addition to using domestic manufacturers, successful dropshippers have been diversifying in the products they sell. In the last year, due to people’s new health concerns and the fact they’re being forced to spend more time at home, consumers have been changing their online buying habits. In turn, dropshipping businesses have shifted to selling products that meet the new demands of customers. There has been a huge increase in health and fitness products, such as bicycles, workout equipment, hand sanitizer, vitamins, disinfectant wipes, and face masks. Other home products like cleaning sprays, instant foods, and toilet paper have also become more in demand from online consumers.
How You Can Capitalize on the Post-Pandemic E-commerce and Dropshipping Boom
If you’re able to adapt to new situations in the way that dropshippers have recently been doing, such as using domestic suppliers and altering your range of products, you can capitalize on the post-pandemic E-commerce boom too. Moving forward, if you want your E-commerce venture to be a success, it’s vital you keep your eye on market trends. Look at whether products like hand sanitizer and fitness products continue to be top sellers even after the worst of the pandemic is over. If customer buying habits change, you need to adapt with the products you sell.
Also, the pandemic and lockdowns have caused many consumers to rethink their purchasing behavior and many are looking to reduce the carbon footprints of product delivery and buy items that use recycled materials. By keeping abreast of changing market trends, you can tweak your E-commerce business accordingly in terms of the products you sell, the origin location of the products, and how you market your goods.
E-commerce exploded during 2020 and into 2021, and it looks set to continue to rise in the coming months and years, so now is the ideal time to capitalize on the boom.
