2020 has been the biggest drama in decades. There have been so many lives been effected by the COVID 19 around the world. In the dropshipping industry, we have eye-witnessed a lot of ups and downs for the past months. So what are the biggest changes of dropshipping industry and what shall we do to adapt to it?
1. From 'Want' to ‘Need',
In the dropshipping business before it, people used to be big on impluse buys. Dropshippers are very much into stimulating peoples' needs to buy something. It could be a novelty item, a toy for the kids, a gadget looks amazing. We've been seen a lot of such products in the past few years and it's one of the main categories winning products are from.
Now with tens of millions people losing their jobs or even their homes, people are cutting back on a lot of things. In fact, there is one sector doing great right now is people's necessities. Amazon stock is higher then ever because when crisis comes, people use it as an online super market to buy necessary things in life.
So, in picking products, you should think more of 'do people actually need it' then 'do people want it'.
There are some niches doing great recently, including working out items, haircut items, toys for kids, or pets. You can see the logic there.
2. Be careful of the shipping time,
There has been a time when Epacket is the final solution for almost everywhere. People tend to sell only to Epacket countires and ship there. Now with Covid 19, it's been crashed almost entirely. We've seen Epacket shipping time as long as 3 or 4 months and people are facing tons of chargebacks and refunds when they ship a lot of orders using Epacket. Their paypal being frozen, Shopify too.
It's very easy understood because post offices in each countries work very differently. Some of the countries are quite normal, such as China, partial US and Europe. Some are very devastating even stopped working for a long time.
If's better for you to centrate on your main market and leave much more leeway to your customers. You can say '50 to 70 days' instead of '7 to 20 days' used to. If you worry about conversation been tanked because of it, try doing more research for a safe line or even send stock to destination and ship locally.
3. Do not be afraid of testing,
A lot of things have been changed, including your winning products. Even some of the winning products have been selling well for years, could have been tanked because of the change. You have to keep testing new ideas and new products in order to find a winner.
As an agency, our fulfillment business has been changed a lot too. We have helped our clients to move to local shipping as well as special lines other then Epacket and boom their businesses. If you are interested in getting more info of our service, please contact us.
Or if you have your own story to share, do comment below.
Wish everyone a healthy and fruitful year of 2020!