COVID-19 has changed the world drastically. This is how it will affect YOUR dropshipping business!
Updated: Jul 14
Prior to 2020, you would not see shopping in physical stores as a ‘potentially dangerous’ activity. However, recent events in 2020 have made it so. Due to safe social distance measures, the retail landscape saw customers moving to online shopping for their retail needs. This trend increased dropshipping sales too! Experts also estimate that the global dropshipping market will grow to USD 557.9 billion by 2025.
However, consumer behaviour has changed dramatically since the pandemic occurred. Though instances of irrational consumer behaviour has been observed during lockdown, do not count on this to become a norm. Due to the negative economic outlook, customers are thinking about the quality of a product they get from the dollar spent. A COVID-19 consumer survey done by McKinsey reported that the pandemic has negatively impacted brand loyalty. People are more willing to purchase from a new brand or shop as long as they are provided with more value for every dollar spent.
It is no surprise then that in the same survey, value ranks as the top reason for customers wanting to purchase from a new brand.
This is likely due to the negative economic outlook shared by customers from most parts of the world with the exceptions of China, India and Indonesia. Due to the increased sensitivity to price, value is the primary reason why people would try new brands. Customers have also expressed that they are intending to maintain these changes in their spending habits after the pandemic is over.
What do these changes mean for dropshipping businesses? Provision of quality products and effectively crafting a positive customer experience online is essential for businesses to stay .
Here are 4 reasons why engaging a dropshipping agent will help your dropshipping fulfil these 2 requirements!
Dropshipping agents can negotiate better terms on your behalf
Chinese suppliers usually speak Mandarin. Unless you are a native Mandarin speaker, chances are you will be faced with communication barriers as most suppliers have limited understanding of English. A good dropshipping agent will be proficient in both Mandarin and English, so as to negotiate better terms with the suppliers on your behalf. With preferential price terms, you will also be able to provide your customers with products of the same value but at lower prices than before!
Helps to conduct physical quality checks on your behalf
Many dropshippers source products directly from product aggregating sites like Aliexpress. This means that products from your online store travels directly from the supplier to your customer without ever passing through you. Reading reviews may give you insights into the quality of the products. However, the best way to ensure product quality standards is to physically check them.
Some scenarios that may arise from this include:
1. Suppliers placing their own name cards into the customer’s package, affecting the image of your business
2. Customers receiving low quality products
3. Order is not fulfilled
This is because the barriers to being listed on these platforms are low and anyone can operate on these sites. Most dropshippers are unable to physically check the quality of the products first before releasing it to their customers. And yet when such incidents happen, customer’s trust in your store will plummet.
Dropshipping agents like Xianchao Logistics have a professional team to prevent such situations from happening. With stringent supplier vetting processes, we check that products are not faulty before dispatching them to your customers. All you need to do is send us the link of the product you wish to sell and we will conduct quality checks on your behalf.
Ensuring available product stock on hand
A legitimate dropshipping agent would have a physical warehouse to help you store product stock. When shopping online, one of the ways in which customers gauge the value of the product they would receive from a store is through online reviews. If different reviews showed stark contrasts in quality, the customer’s trust in your product will be shaken. This is why legitimate dropshipping agents would have physical warehouses to help you stock up on products. Not only would you be able to ensure consistency in product quality, your customers also get to enjoy shorter delivery times.
Adding your own personal touch to the product
Despite the shift towards online shopping, customer survey has reflected that most consumers still prefer the experience of shopping in at brick and mortar stores. The experience of being able to feel the product before making the purchase and staff service are the main contributors to a pleasant shopping experience in a physical store. While these cannot be entirely replicated online, adding a personal touch to the product helps your business to leave a deeper positive impression.
Some customisation services dropshipping agents provide which improves customer experience are:
1. Customised packaging
2. Inserting a personalised thank you card for supporting your business
3. Adding a promotional code for returning customers to redeem
4. A guide on how to use the product
The list of personalisation services which dropshipping agents provide is not limited to these few. You may want to discuss further with your dropshipping agent how your personal touch in your customer’s experience can be well expressed.
At Xianchao Logistics, we understand your need to provide your customers with value products at the best rates. Enquire with us today and we would get back to you ASAP!
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