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Drop shipping is a common supply-chain method used by various companies across the world. It involves the transfer of goods from the retailer in question to the manufacturer, a wholesaler or some other retailer, from where it is sent to the customer.

Drop shippers are a profitable and efficient way for most businesses looking to expand. And in recent years, China has grown to become a major player in the drop ship business. However, with the recent spread of Coronavirus, many drop ship suppliers from China are experiencing problems.

The virus has led to multiple issues that is putting businesses at risk of foreclosure and customers not getting their products on time, or at all. But fortunately Wholesale2b is adapting during this time of crisis and delivering to their consumer base.

This article will first highlight the issues that coronavirus has caused drop shipping in general, and then discuss ways to combat and avoid these challenges.

The Effects  Of Coronavirus On Drop Shipping

According to multiple sources as well as CNN, drop shipping suppliers that take products from China are halting their transfers to mitigate the spread of the virus. This has affected companies worldwide as China is home to some of the biggest companies of the world.

The following are some of the major effects the coronavirus has had and continues to have on drop ship businesses.

Shipping Delays

One of the major problems most drop shippers are experiencing is the delay in shipment. Because the Chinese government as well as other nations’ main concern is the public health and safety of its people, products will not be delivered on time.

This is because further control and disease prevention methods have been put in place that not all companies, especially small-scale drop ship businesses can afford currently. Ultimately, this introduces financial dangers as various ports and pathways for transportation remain closed.

And finally, there is no way to predict when these restrictions and blockages will be removed. As a result, drop shippers are left in a state of uncertainty that gives rise to another problem caused by the virus.

Risk of Bankruptcy

Many small scale drop shippers are at risk of going bankrupt due to the lack of certainty on the time at which business will resume as usual. Such companies sustain themselves on being able to meet the requirements of their customers in timely fashion, so this issue may put them out of business.

Added to this, are the additional costs that drop shipping suppliers will have to incur if they look for alternative ways to ship their product to their customers. These include paying premium costs that some suppliers may not be able to pay, increasing the risk of bankruptcy.

Media Frenzy

In the age of social media, it is extremely easy to spread misinformation and create fake news that will grab the public’s attention. Given that coronavirus has received a lot of attention in the media, many have taken to social media to hype up the issue, affecting many drop ship businesses negatively.

This can and perhaps already has caused customers to stop buying or importing products from China, despite the requirements of health and safety being met. Even the centers for disease control and regulation are not trusted who may approve of a shipment as being safe to travel.

Ultimately, this is bad news for products made in China, and thus for the Chinese economy. Sales for products from China are likely to continue decreasing until the threat subsides. But until then, some businesses will most likely go under.

Possible Solutions By Wholesale2b

So how does wholesale2b avoid all these issues?

It is quite simple; we at wholesale2b integrate suppliers mostly from the United States, which enables us to continue to run our business smoothly.  We understand the importance of providing our customers with a safe and trusted experience, which is why we take pride in how we get you your products.

But if there are some of you looking to start your own drop shipping business or are already in the business and struggling, do not fear! We at wholesale2b recognize the importance of developing an action plan to deal with the situation at hand, so here it is:

The first thing you should do is to contact your drop shipping suppliers. Speak to them about the situation on the ground, as this will give you an idea of how serious is the issue that you are dealing with.

If there is significant risk, you may want to put a temporary stop on your ad campaigns to reduce money being wasted during this period. Instead, use this time to respond to and deal with the orders you have already received and stay in contact with your customers.

Ideally, you should be honest with them about the delays, as this will make them feel they are being heard and will not abandon ship so to speak in your time of need. Or if you wish to not induce panic, you can simply not state the reason for the delay.

However, this does not mean that you can be irresponsible with your products and their safety for your customers. Ensure that if and when they do arrive they are completely safe to use.

Lastly, you should consider looking for drop ship suppliers in other nations such as the States and Europe. This is perhaps the best solution in the given situation as it completely removes the fear that may keep your customers from buying from you.

You can tweak the action plan above to suit your business’ needs, but having a way to tactfully and timely address the concerns of your consumer base is essential in the establishment and survival of a business venture.

We hope these suggestions come in use for you.

Source: Wholesale2b


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