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Where Is Shopify Dropshipping Headed In 2020?

Published on: December 6 2022 by Shri Kanase

Where Is Shopify Dropshipping Headed In 2020?

Where Is Shopify Dropshipping Headed In 2020?

yo what is going on everybody Cherie
canasa here so where is dropshipping
headed in 2020 now just when things
couldn't get any worse they actually did
end up getting worse especially in
America right now with what is going on
at the moment when I'm recording this
video which is early June people were
already tired of just sitting within
their homes they didn't really have
anything else to do and now that things
kind of started to fall back in place
some things went on in the United States
which kind of got everything in a very
big mess and believe it or not a lot of
these things that are currently going on
in the world at the moment are directly
impacting dropship again are directly
impacting Shopify store owners like
yourself and myself but does that really
mean that it's the end of drop shipping
that Shopify is not a viable platform
anymore to use and that you should
simply go move on to something better in
this video I'm gonna be specifically
toking about exactly where I personally
think drop shipping is headed what I've
been seeing in the past regarding drop
shipping from Aliexpress and also give
you a full step-by-step strategy as to
how you can kind of make it easier for
yourself to dropship in 2020 and onwards
so this is really one video you want to
watch until the end but if that was the
animal town let's find out exactly where
drop shipping is headed so in order to
really actually find any type of success
with what I'm about to say there's one
thing you absolutely have to do and that
is destroy that like button down below
I'll take just two quick seconds okay
hopefully have done that but let's start
off by toking about one of the most
important things related to drop
shipping or just selling online and that
is shipping time so what exactly is
going on with shipping times from
Aliexpress now if you already drop ship
from Aliexpress you already pretty much
know that shipping temps are heavily
delayed and a lot of the shipping
options are used to work before don't
really work anymore and the main reason
behind this really is that there are
just a lower number of airplanes
available from China to the US if that
wasn't already a problem USPS within the
United States is also having problems
delivering on time because of lack of
workers and the huge restrictions there
were with working during this time plus
there were a lot of precautions a lot of
people had to take in order to keep
themselves safe and a lot of the
packages were kind of just getting the
night of the killer coming from China
and I've had personal experience with
this because a lot of my customers
wanted me to just cancel your order
because they found out that their
package was coming from China so this
was actually
one of the bigger problems especially
for using Aliexpress during this time
but but again as I mentioned already
because of the lower number of airplanes
available from China to the US during
this time period specifically this year
it has been an increased amount of
shipping time for a lot of the packages
probably 99.9% of the packages out there
and the Pacific shipping times before
which was around 7 to 22 businesses has
significantly increased to around 25 or
more business in because of this it has
heavily impacted a lot of drop shippers
dispute rates are going up heavily
because a lot of people don't really
want to wait over 25 days just to get
the product at the order but in addition
to that one thing I mentioned before was
that the shipping options which you
could use previously and in this case it
would be a packet it's kind of dead at
this moment now what this specifically
means is that because of so many
packages that you packet over in China
is dealing with they are having a very
very hard time just shipping them out on
time getting these Packers on these
airplanes so that they could come to the
United States on time and because of
this a packet is pretty much dead if you
do use a packet still I highly recommend
that you change over to something else
in this case at this moment I personally
use Aliexpress standard shipping but to
show you guys a little bit more about
what I'm specifically toking about
let's go and go on over to the specific
Alex first product page and I want to
show you guys the shipping temp so as
you can see right now we're on
Aliexpress standard shipping and if you
look at estimated delivery time it's
really a delayed delivery time here as
you can see July 2nd so clearly this
delivery time that Aliexpress is
estimating at this moment is well over a
month and that's you with Alex where
standard shipping which is one of the
better options at this moment if you're
going and look at a packet we can see
that it's delayed even further than that
first option and it's on July 4th so as
you can see these two main specific
shipping options which a lot of drop
shippers used to heavily rely on are
showing increased amounts of shipment
times and delivery times and if it does
get delivered during this time it's
really not a great option for you
personally because a lot of your
customers as I said before would be
opening disputes nobody really wants to
wait over a month for what they order
but if you look at the specific other
options available if you do have a
higher profit margin which is one thing
I recommend during this time period and
I'll tok about that more very soon but
if you look at Alex first Premium
shipping we can see that it's a little
bit
sirs June 19th but again these are
estimated delivery times take them with
a grain of salt they may or may not be
really that accurate and for just $20
extra you can simply ship this product
via DHL and as you can see June 17th is
the estimated delivery time so if this
would have been much much faster hat
than time span normal and it had been
just like any other year but right now
even these faster shipping options are
heavily delayed but as I already
mentioned Aleks for standard shipping is
really the best way to go at this moment
but if you do plan to kind of give your
customers a better experience I highly
recommend that you instead of stiking
to maybe $10 $20 $30 profit margins you
increase that up to maybe 40 50 and 60
and so forth so for instance if you buy
a product on Aliexpress for $5 you may
want to sell that product for $35 or $40
so you have a very very good room to
kind of get a good amount of profit
while providing your customers a good
experience because right now if you
don't really provide them the good
experience and I'll be toking more
about how to provide a good experience
very soon in the video but you can be
expecting again a lot of charge recs and
this could heavily influence your drop
shipping store possibly even shut it
down so this is kind of a serious thing
and you want to really be paying
attention to this but if you don't
really have that big profit margins to
be playing with just go ahead and choose
Alex / standard shipping even though
that estimated delivery time is well
into July it could still arrive much
much earlier than that but that is the
overall situation when it comes to
shipping from Aliexpress during this
time right now if we continue toking
about the specific products that you
want to buy there are several product
issues that are coming up at this moment
as well which I've personally
experienced as well so one of the main
issues I'm seeing consistently is that a
lot of the products are going out of
stok for some reason and they're
staying out of stok for longer periods
of time so for instance if I import a
product from Aliexpress onto my Shopify
store and I check that product the next
day on Aliexpress usually it'll be out
of stok and this may really not be
because the product itself is out of
stok but because maybe the Chinese
factories which are shipping out your
orders are having difficulties sourcing
the products because of what's going on
in the world and if that wasn't bad
already
alik stress is causing a little bit of a
more hassle for us drop shippers by
randomly canceling a lot of the orders
and I've had this happen to me as well
where an order would automatikally get
cancelled for some apparent reason and
when you check the reason it just says
security reason but in addition to those
reasons another reason why the AL
express orders are getting cancelled is
because of stok issues because maybe
the price increased after you purchased
the product and now that Alex were
supplier really can't ship out the order
for you so these kinds of things are
really causing big issues for the Alex
for suppliers as well as drop shippers
now toking more about specifically the
products and specifically the product
prices the product prices are actually
started to increase on a day to day
basis this has been happening for the
past 14 to 30 days but these past few
days that has been happening
significantly more and what I mean by
this is one day the price will be one
amount and the next that you check it
will have increased now I've personally
spoken with a lot of Alex for suppliers
only to find out that they're saying
this is because of the lack of
transportation and also the u.s.
shipping costs specifically with USPS
and other shipping options that these
Chinese suppliers use to ship to us are
changing widely every single day not
just today I had to ship one package
from my home to one of my customers via
USPS priority mail and that package
today cost me $10 but last week when I
was shipping something for one of my
other customers who lives in a similar
area very very close to where I shipped
it today that price was around $20 so
it's very very clear that these shipping
costs are increasing and decreasing
heavily and ranging widely on almost a
daily basis so because of this is
becoming really hard for a drop shipper
like you and me to understand what
surprised the product and which is why
it's so important to have a good profit
margin during this time periods but in
addition if that wasn't already bad
enough there's more additional costs for
your customers and what I mean by this
class is specifically custom fees a lot
of my customers have been messaging me
saying that to pay $20 extra or $30
extra just to get the product from us
customs deliver to their home and this
is again becoming a bigger and wider
problem nowadays simply because of the
restrictions that are getting placed and
because of all of the checking's that a
lot of these packages are going through
during this time period but if you're
not really sure about the custom fees
you will most likely be contacted by
your customer if they do get charged and
if the package actually gets stuck
within customs so you don't have to
really personally go out and check
whether your packages are getting stuck
or not your customers will let you know
that but now that we've kind of covered
the basics let's tok about the long
term exactly where is drop shipping
headed what
this mean for us drop shippers in the
long term again is this something that
we need to be scared of and do we need
to kind of go into another specific
business venture other than drop
shipping maybe building a brand and
there are actually several answers to
this which I'm gonna be covering first
of all to clear any doubts you have drop
shipping is not dead these are just
simple hurdles that you will have to
kind of figure out ways to get through
but these are very very manageable
hurdles if you do the right things which
I'm about to mention right now you will
get through these hurdles and dropship
will still be profitable for you but the
first thing you'll need to actually
understand before you can even think
about getting through these hurdles is
the consumer mentality meaning the
mentality of the people coming onto your
website to buy stuff from you how has it
changed since this past few months if
you compare it shopping online versus
going out to malls to shop there has
never been such a big increase in the
amount of people who wanted to shop
online versus actually go out and shop
somewhere because again of what's going
on in the world people really don't want
to risk their life anymore to go out and
shop and I think this specific situation
will be evident throughout the rest of
this year so this is actually a very
very good time for us drop shippers are
just become store owners in general
because again a lot of people that want
to move towards online shopping a lot of
people have moved towards online
shopping and this will kind of remain
again in place for of the next few
months maybe even permanently who knows
but in addition to that because of
what's going on in the world I've
personally notiked a lot of the
customers are much more likely to be
willing to just wait a little bit extra
for their orders now this doesn't mean
they're gonna be waiting two to four
months just to have a product delivered
but this doesn't mean that they'll kind
of give you a more leeway for your
packages to get delivered but of course
you will also face some customers who
really don't want to wait and so expect
fast service like as if they're shopping
with Amazon but you can definitely be
expecting a little bit of a more
cooperation from your customers during
the long term but in addition to that
it's also more important to start
shifting your focus towards branding
your dropshipping store if you only do
dropship and I know I just said that a
lot of people are more than willing to
wait longer so you may be thinking
what's the point of doing branding if we
can actually drop ship and have
customers cooperating with us well again
if you think long-term drop shipping may
or may not be here in the next two years
four years ten years and if people start
catching up to what a drop shipping is
exactly
Shopify stores could actually go out of
business so it's never too late to
actually start thinking about branding
and branding is kind of not that
difficult a lot of people make it
difficult and confusing especially those
youtubers who teach branding but it's a
very simple process and the main reason
why you even have to consider branding
is so that you can offer a more
personalized experience to your customer
so people actually think that they're
shopping within a specific niche and a
real website rather than just some scam
a general dropshipping store but in
addition so that you can provide better
service to your customers through faster
shipping times and you can use maybe a
u.s. warehouse or a drop shipping agent
to offer the status or service there's a
lot of benefits as to why you should be
focusing on branding at this moment I've
already made a video on my channel I'll
leave the link in the description below
for that video but in general branding
really lets you build a relationship
with your customer and it really relates
the foundation for your store long-term
so no matter what happens in the world
it should not really affect your brand
unless of course the stuff happening in
the world is directly related to your
brand and people would stop shopping
within your brand because of what's
going on in the world in that case it
would of course affect your brand but in
general branding is the number one
long-term solution to what's going on in
the world right now but in addition to
that if you tok specifically about
continuing drop shipping or just doing
what you're already doing then you want
to start focusing more on customer
service because at this moment it's
super important that you start paying
attention to what your customers are
saying and you start paying attention to
providing them a good experience one of
the best ways to be offering good
experience right now in 2020 with what's
going on in the world is by trying to
respond to emails within 24 hours
because again the longer you make them
wait the more afraid that are gonna be
coming the more chances there will be
disputes for your orders in addition to
offering fast customer service you
should also focus on putting a lot of
detailed explanations on your website it
could be a detailed shipping time or a
refund and return policy on your Shopify
store and you could even think about
introducing these specific texts within
your descriptions maybe at the very end
because again you want to be as clear as
possible with your customers during this
time period and also for the long term
because again nobody really knows when
the shipping times will become like they
were before and nobody really knows what
to expect in the future so the best
thing you can do is continue focusing on
customer service and
to give your customers a very very good
experience because that's the only thing
you can control at this but besides that
you also want to be kind of taking
different actions when it comes to the
products that you add to your store and
the products that you choose to sell so
one of the main things I've changed in
these few days in these past few weeks
and months is that I've started only
looking for suppliers with 95% or more
positive reviews because anything below
that and nowadays I'm seeing that those
specific suppliers are really delaying
their orders they don't really care
about us meaning drop shippers who are
ordering from and this is one thing you
want to be focusing on because no matter
how good the product is and no matter
how good the product is selling if your
supplier is bad and it's not shipping
out your orders in timely manner your
business is gonna suffer period so you
want to have a good supplier that you
can of rely on but in addition to having
a good supplier you should make sure
that the product itself has four stars
and above reviews anything below four
stars nowadays and that product is not
something I really think about selling
especially if it has some product
quality issues or if the reviews in the
bottom are toking about the shipping
times again so it's really important
that you start paying attention to what
kind of reviews people are relieving for
that specific product and understand
whether that product is really worth
your time or not because short term
money is not really that ideal to be
focusing on at this moment especially
with what's going on in the world but in
addition you want to start looking for
products that are basically getting
shipped from the United States now I
mentioned this specific trick in my last
video you can check that video out after
this one but just simply choose ships
from United States when you're searching
for a product and make sure that the
product you're trying to sell is
actually low weight because if you go
back to the very top as I said already
there's a lower number of airplanes
available to come to us from China and
for these specific airplanes that are
mostly taking products which are kind of
lightweight and not too heavy so do you
want to kind of keep this in mind when
dropshipping these heavy expensive items
because a lot of them may not be shipped
on time and of course that would delay
the delivery times but this is exactly
where I personally think drop shipping
is headed in 2020 and what the steps
they should be taking to kind of put
yourself at advantage compared to other
drop shippers and make sure that you can
continue drop shipping profitably if you
found in this type of value in this
video smash that like button and smash
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