Updated: Jul 26, 2020
The global economic impact of COVID-19 has had a drastic impact on every industry, and e-commerce is not an exception. Even if your business is online and does not depend on a brick and mortar model, your suppliers & manufacturers don’t rely on the same dynamics. This means delays in deliveries and several manufacturing difficulties.
For dropshippers particularly, this pandemic does create several challenges, but the opportunities for growing your business in this time cannot be overlooked. In this article, we will explore some interesting trends which can make you as a dropshipper really positive about your future.
The future of business is mobile
It is estimated that mobile commerce will outpace non-mobile commerce in 2021 and the total number of US-based shoppers who make purchases via their smartphones will reach 168.7 million. As the graph below shows, there is a very noticeable shift of usage towards mobile from desktop computers.
This also means doing business via your smartphone is fast becoming the norm. Shopify is one of the few e-commerce platforms that has built a robust mobile infrastructure to aid your ecommerce business.
Also, customers now expect businesses to be online 24/7 and a livechat support on your mobile device will make it easier for you to reply to your customers no matter where you are.
Switch towards business automation
Business automation has made dropshipping very easy to manage as manual product import in your e-store is increasingly fast becoming outdated.
Now apps like Shopoo and others help you completely automate your entire dropshipping business so you can focus on the marketing. It allows you to instantly add the products of your choice from thousands of suppliers and sell them to your customers without having to go through tens and thousands of product directories.
Such business automation also allows you to avoid costly errors like inventory or pricing mistakes which ultimately helps you to save time, money and improve operational efficiency.
Consumers are spending more money online
As the graph below shows, there is a clear shift towards e-commerce in the US, with the total revenue generated by it expected to reach more than US $600 billion by 2024.
According to a recent report by Stackline in March 2020, US consumers are shopping online more, with sales of groceries, home cleaning items, toilet paper and other home apparel increasing drastically.
Also, with the closure of gyms due to the pandemic, there has been a surge in demand for home fitness products. A recent report by Adobe Analytics shows that online sales for fitness equipment increased by 535% from February to March this year, as compared to only a 70% increase during the same time frame in 2019.
Social Commerce is already set to rule social media in 2020
Social shopping has been gaining momentum for a while. Both businesses and social networks have been searching for the right way to convert social media channels into a sales platform.
Therefore, it’s important to connect your e-store to your social channels in order to maximize your sales potential. There are many platforms like Shopify and BigCommerce which make it easier for you to automatically connect your e-store’s product catalog to Facebook & Instagram. The shoppers can then search, shop, and buy your products directly from your Facebook or Instagram posts/stories. Such social commerce integrations on your e-store are now not only necessary, but crucial to your business growth ahead.
If you think we missed out an important trend to help dropshippers thrive during Covid-19, do let us know.