It has been established that most businesses are at the brink of closure or temporary halting operations due to the economic uncertainty that is brought about by the COVID-19 pandemic. But does this apply to the industry of dropshipping? Or to be specific, will the dropshipping model continue to remain a worthwhile endeavor at least for the remaining months of 2020?
Get to know more about this topic as you go through today’s entry.
Is The Dropshipping Model Still Alive?
Many online entrepreneurs are haunted by the uncertainty of earning profit through dropshipping considering the advances of technology can make most business models outdated. But let’s take a look at online stores that are currently prospering under the method of dropshipping like AliExpress and examine how they fare during the current pandemic situation.
According to Google Trends, the search terms related to dropshipping are still going strong despite having a significant dip in sales. In fact, most of these dropshipping terms are searched in the United States, which is a surprising revelation considering the current economic uncertainty that most countries are experiencing right now.
What could be the possible reason for this? The way we see, it has some to do with the immediate change in consumer behavior as more and more people are buying their stuff over the internet today regardless of the necessity to follow the stay-at-home regulations or the fear of risking their health once they go outside their homes.
And if you think that this fact may only apply to huge companies like AliExpress, well it’s not because the same data covers all dropshipping businesses in general and not just one company.
So Is It Still Worth It?
In our own opinion, we can still say that adapting to the dropshipping method can still be a profitable endeavor if you follow these tips:
- Make sure to research for the latest trends in dropshipping that are going on right now so you can remain competitive in business. It’s okay to check out other companies that also do dropshipping so you can get ideas and forecast profitable items at the time of the health emergency.
- Offer items that are essential to the customer’s needs, especially those things that need to protect themselves from the coronavirus as these items will be “sure sellers”. And if possible, try to set aside luxury items, at least for the time being, as most people will tend to disregard these products due to limited budget.
- Set prices of dropshipping products in such a way that it’s still affordable to customers but will also allow you to make a little profit margin. After all, it’s better to earn something than have nothing at all.
Lastly, if you want your dropshipping model to thrive over the next few months of this year and beyond, you need to prioritize your customers at all times. And you can do this by taking care of their concerns immediately, allowing them to refund purchases faster (case to case basis), and giving rewards for being a loyal customer.
All in all, your dropshipping businesses will sustain if you do these things we’ve mentioned above.