Ecommerce achieved a turnover of 3.55 billion euros last year and the predictions were even better for 2020.
However, since the explosion of the pandemic outbreak of the much-mentioned Coronavirus … the unimaginable has happened: the world has stopped. And no one knows for sure what will happen in the near future.
It is conceivable that the most affected are, as usual, the self-employed and entrepreneurs who have no choice but to do the impossible to keep their businesses afloat. But is the coronavirus a problem or an opportunity for these sellers? Let’s find out.
Dropshipping during the coronavirus
“I have doubled my turnover in dropshipping during the Coronavirus”, Agustín Arpa Gallofré tells us, a successful dropshipper who claims to invoice more than 1 million euros per year for dropshipping. However, it has not been easy. Sales do not fall from the sky and that is something that Agustín knows well. His first steps into entrepreneurship were at the young age of 14, with a mobile phone reselling business on eBay.
Since then, he has been training, learning from his mistakes and improving every day until he reaches where he has arrived. It is precisely his knowledge and experience that has allowed him to react quickly, adapting to the new reality that the world is experiencing.
Adapt or die
On March 15, the State of Emergency is decreed in Spain, agreed a day before by the Council of Ministers and, with it, comes the first confinement that promises to last 15 calendar days.
That same day Agustín looks at his data and sees how his sales have fallen by 95% in just one weekend.
“Confinement creates brutal panic. The decline in sales is catastrophic. The speech only talks about how bad the situation is going. The gurus recommend stopping advertising, even stopping selling ”, he explains.
But Agustín doesn’t panic. Check your data in traffic and they remain intact.
It’s Sunday but he’s running off to his office. To work, but above all to think. “Traffic hadn’t dropped, which meant that people kept visiting my website, but why weren’t they buying? That’s what I had to discover ”, he explains.
After much research, consider two possible reasons why your sales may have declined:
Buyers are afraid of being infected through parcels.
Users fear that order delivery will be disrupted.
Agustín considers the first option less likely, since the packages have been shown to be completely safe. Experts argue that the virus cannot survive for long on the surface of packaging and, in addition, companies are taking very strict measures (use of gloves, masks, etc.) to prevent the transmission of the virus.
Therefore, it seems that the second option is the winner.
Simple and good twice good
Once the cause is established, it only remains to take action and find the solution that combats the decline in sales. A banner. “I decided to create a simple banner on my website that would inform the user that we were still operational and that shipments were guaranteed”, reveals Agustín enthusiastically. orders-ecommerce-coronavirus
An ingenious idea that had not even occurred to the big brands. “I went to other online stores and the big e-commerce companies to see if they had the message and, thus, write a similar one. But I did not find anything. I was one of the first to react ”, he tells us.
When we asked him how he came up with this idea, his answer is also concise: “Anyone who knows a little about ecommerce and digital marketing knows that to sell online you have to eliminate objections, excuses for not buying the product.”
Therefore, a simple: We remain 100% operational and guarantee the delivery of all orders is the necessary sales strategy in this crisis.
That’s how easy it was that Agustín in just 2 hours increased the conversion in his store by 50%.
Are dropshipping orders still being shipped during the Coronavirus?
How logical COVID-19 has had repercussions on dropshipping, but Agustín informs us that at least in Spain, shipments are being made.
“Distribution with private logistics providers works well. Chinese factories are reopening and although there is a slight delay, orders are being shipped. Customs management is also running smoothly. And the orders with Correos, which had suffered a total collapse – are also being diverted to Correos Express ”.
In addition, you also have to consider the delivery time of the orders. Imported Chinese products take an average of 10-20 days to arrive, so margins are still respected. “And people are not worried about waiting. You can still enjoy your purchases when the quarantine passes. ” Light at the end of the tunnel
Monday dawned sunny and Agustín saw how his sales continued to increase until he doubled his usual turnover. This successful dropshipper proved that the online business was still on its feet and “the wheel kept turning.”
“And we have not only doubled the turnover, we have also doubled the traffic to our store, without having increased advertising spending. The CPC (cost per click) and the CPS (cost per sale) have been cut in half ”.
“People are very bored at home. In the end they have to find something to entertain themselves with. With physical businesses almost completely stopped, commerce stores have an opportunity. Demand grows at the same time as supply decreases. So we have to take advantage of the pull: it is a good stimulus for the economy ”, explains this dropshipper.
At the same time, Agustín is a teacher at the Emprendedores.com school and he has already communicated all these tips to his students. As stated, it is about “informing the user”, taking advantage of the “cheaper advertising” and betting on “booming products” during the Coronavirus. But beware, without playing dirty. Dropshipping and good deeds during COVID-19
Many have been those who have tried to take advantage of the COVID-19 crisis.
In fact, large corporations have been forced to take action. For example, Amazon bans anyone who tries to sell masks, disinfectant gels and other claim products during quarantine. So it is time to show that dropshipping also has a place for good deeds.
Every drop counts
Agustín and his team have organized crowdfunding with which they managed to raise more than 3,000 euros in less than 20 hours. The money has been earmarked for the purchase of 2,500 masks that have been donated to the San Celoni hospital, the town where they live.
“In total, we have managed to raise 5,500 euros and we want to make a final donation up to 6,000, which will allow the hospital to completely overcome the COVID-19 crisis,” explains this successful dropshipper.
They also tell us how they did it. “We have a lot of experience in relation to importing from China. I have applied everything I know about dropshipping to help this hospital: contacting suppliers, planning the shipment, raising the money, etc.
Agustín shows us that in these moments what matters is to help each other because together we will achieve it.