Does the Coronavirus impact your dropshipping business? In this episode, I give you a few insights on how you can get through the coronavirus in dropshipping. If you are a dropshipper selling items from AliExpress, this means your products might have lengthy delays reaching your customers. Here's what you can do about it.
When you're looking in the news right now, there's all over the place, the Coronavirus thing that killed some people in China. And I got a lot of questions in the last couple of days, what does it actually mean for your dropshipping business? “Will I stop working now or will I get a lot of refunds from customers?” And in this episode, I will talk about what you can do in order to keep making sales, keep happy customers and what you can do to prepare for such things. For example, there's something similar, but not in a bad way but in a good way, like the Chinese New Year for example, because a lot of people can't make sales in the Chinese New Year and I have a little workaround that works really good for it. So this is the first episode on this show here. Go on to iTunes and subscribe. It really helps me out getting this high ranking, so follow the podcast.
Sam Peiffer: ([00:59])
The first thing you need to know about things that happen, like the Coronavirus or like Chinese New Year even is that the supply chain from China will be shut off for a certain period of time. And for Coronavirus, we don't know how long it lasts, so basically you are left in the dark here, but there's a workaround for this. And you can use, for example, US suppliers only or suppliers only where you're selling. That's the easiest way to avoid this and the easiest way to do this, actually, when you're using still Oberlo and AliExpress for example. Just don't pick the Chinese supplier. Oberlo, for example, has a certified supplier within the US and even in other countries. So don't pick the ones from China right now because they can have a really big delay.
Sam Peiffer: ([02:00])
The second workaround this, use virtual warehousing, for example, or some other free sourcing platforms that source your products from China to a different country and manage everything for you with an eCom manager, like for example with uDroppy. This is very good, and then when something happens, you have something stored for more or less short or mid-period of time in length, I mean, for example, two weeks, four weeks of inventory, and you can use that for the time this event happens, like the Coronavirus or for example, Chinese New Year. When we have something in place like that, you're not very scared about the events that happen because a lot of people freak when they do dropshipping full-time and then Chinese New Year hits and they're still doing AliExpress dropshipping with Oberlo for example, and then the customers will get their products even later, okay?
Sam Peiffer: ([03:12])
With AliExpress dropshipping for example, the shipping times are very long. Let's face it. And the customers are not so happy about it. When you do the normal dropshipping method and your customer has to wait six weeks for the product for example, and there comes a Coronavirus and it's suddenly three months or so, you get a lot of refunds and a lot of bad reputation and everything. So you have to keep in mind that such events can happen and you need to prepare for it, okay? And the easiest way is to use services like uDroppy or local suppliers in the country that you are shipping in, okay?
Sam Peiffer: ([03:58])
For Europe, there's a supplier called Big Buy. You can buy dropship with them. This is similar to AliExpress but in Europe. For the US, you can just use Oberlo, the suppliers that are US-based, and that's basically the easiest way, or you can just go with [inaudible [00:04:22] for example is also very good, or CJ Dropshipping. They are very good. And in order to keep your customers happy, that's the solution for this, for the whole Coronavirus and Chinese New Year thing. You should just be upfront with it when somebody buys your product, just sending them an email and saying, “Okay, right now because of the Coronavirus we have problems with delivering the product and in order to keep you happy we can offer some discounts or something or give you off a percentage of the product or your purchase or something.” Just be creative and give them something for free so they can bridge the gap of waiting, okay? So that's very important.
Sam Peiffer: ([05:08])
And the relationship with the customer is the most important thing. So they don't care when it takes six weeks, two months or three months or something. When you're upfront and you're communicating very well with them, it's okay for them. Right now I'm living in Panama, and my shipping from the US to Panama is two to two and a half, three weeks, and all the time I buy from Amazon it's like two weeks, yes, and I'm okay with that. Amazon or wherever I buy from the US, they are upfront with me and all that. And that's why I'm not sad about it. So that's the most important thing here. And you need to prepare also when times are rough, like the Coronavirus times and you dropshipping businesses struggling because of it. You really need to get good in handling customer complaints, okay, and really help the customer resolve his complaints. That's a key takeaway here.
Sam Peiffer: ([06:15])
And also, I would recommend you give people refunds when they ask for them, just because you want them to give you a good review because customers can come back again in the future, and if you don't give them a refund now, they won't come back again later. So they won't come by themselves. But you can do retargeting on the ad and say, “Okay, now we fixed this Coronavirus. The Coronavirus is gone now and we have normal shipping times now.” Just make a Facebook ad so the people who to bought or you gave the refund and hopefully they will buy again, okay? So that's a thing you can do.
Sam Peiffer: ([07:01])
You can also do on your product description, say, “We're currently sold out, but when you get on the preorder list,” it's a very nice hack. Frame it as a preorder on something. They can get 10% off or something, okay? That's just like the Kickstarter method that works really well. So the Coronavirus shouldn't be an issue when you do pre-selling something, okay, so like the Kickstarter technique. That's the easiest workaround for it. I think it's the most hassle-free one, okay? But you need to fulfill it immediately when you got the money, so it's easier.
Sam Peiffer: ([07:44])
And the last thing, last question I was asked, “Are those diseases like the Coronavirus when you drop ship harmful to people like your customers?” And the answer is no, because according to the CDC, there's no evidence that the current Coronavirus may be transmitted through the goods that are imported, because it's like only when you're touching people you can get sick, okay? So when somebody is coughing next to you or spitting your face or something, then you can be sick, okay?
Sam Peiffer: ([08:22])
And the Chinese government is pretty good about it, keeping it very safe and fighting the whole disease. I have a friend who lives in China or Taiwan or something, I don't know which country it was exactly, something in Asia where the Coronavirus is, and he was telling me that when he came to back to China, they took his smartphone number and they put him in [inaudible [00:08:55] or something and they track his device via GPS and when he leaves his home they will pick them up and bring him back home. The police is very, very aware of this issue and they do their best to eliminate the whole disease very fast. So that's it basically.
Sam Peiffer: ([09:16])
And for your dropshipping business, this will affect, of course, the shipping times because the factories closed down and the Chinese New Year, for example, the ship factories are also closed down, so I recommend going with something like a warehouse or something, which uDroppy, for example, provides you for free, and then you're pretty much golden. That's very easy and your dropshipping business won't suffer. If you do these things that I told you right now, you are very good off.
Sam Peiffer: ([09:45])
That's it for this episode. If you want to learn high ticket dropshipping for example, or you want to do a free plus shipping funnel for your dropshipping business, scroll down here in the podcast feed to listen to those episodes because they give a ton of value there and it will help you build your business very fast. For example, the high ticket drop shipping thing is amazing because you can earn like $300 per sale. Instead of just making 10 sales for 30 bucks and making $300, you can do it with one sale if you want. So high ticket dropshipping is really nice. I would recommend you the episode there, and then we talk soon in the next episode. See you then. Bye. Bye.