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The Corona Virus has made all of us jittery. Today, the Chinese government has shut down a lot of manufacturing plants in China, particularly in Wuhan, where there is an outbreak.
Until such time that they can contain this virus, businesses in the area are in a lock down. No one is coming in and no one is going out.
But how is this going to affect your business? What should you do?
As it stands, the Chinese export industry has already fallen by 20.84%. People around the world do not want to have anything to do with China, and many buyers are also concerned if they found out that they just bought an item from China.
What is the Corona Virus?
The virus, also called CoV, is a common virus. It infects your nose, your sinuses and your upper throat. The thing is, most of the strains of this virus are not even dangerous. One type is the MERS or the Middle East Respiratory Syndrome, also called MERS.
This virus has been around for a while. It was first reported back in 2012, and it has killed more than 800 people in several regions including Africa, Middle East, Asia, and Europe. It was back in 2014 that the first American was hospitalized for this, and then several reports came in where patients were found to have MERS in Indiana and Florida.
In 2020, a new strain was found because of the outbreak in China. It is now officially called 2019-nCoV, which is what is causing the scare right now.
The corona virus was first discovered in the 1960s, so it is not a new type of virus family. The 2019-nCoV is the new strain. Often, the Corona virus in general can be treated. They cause fever and sneezing, and can also infect a person’s hands.
The virus can be transmitted easily by coughing, sneezing, and also by touching things that an infected person touched. They are called Corona virus because of their crown like shape.
How does Corona Virus affect your dropshipping business?
If you are dropshipping from China, you will see a decline in your sales, and your supplies may not even be able to deliver. There are strict precautions being undertaken by the Chinese government now—they are shutting down manufactures and suppliers until such time that situations are declared safe.
This virus has created a fear in the economy. And dropshippers like us are impacted. Just look at some of the facts below:
- The municipality of Chongqing that they will be closed for a majority of its government offices until the 9th of February.
- There are now about 6,000 cases confirmed of Corona virus, and 132 have already died
- The province of Guangdong, where there are many manufacturing sites, made it mandatory for everyone to wear health masks. Offenders are arrested.
- Kazakhstan has suspended Chinese visa and the arrival of all passengers from the country. Everyone who comes to the country from China must present a medical certificate.
- In the Philippines, no new visa is being issued to Chinese nationals.
- In Hong Kong, there are now eight confirmed cases of 2019-nCoV infection. All ferries and train services to and from mainland China are suspended.
- Russia has closed its border to China.
Given all these actions taken by various governments, you cannot dropship from China. As you can see, the virus can survive without a host. It can get transmitted by simply holding an item that was infected by anyone with a corona virus.
If you take orders from customers for your products that come from China, what do you think will happen? If a customer finds out, he will cancel that order, and that is for sure.
And if you have so many cancellations, you will lose a lot of money.
What should you do as a dropshipper?
Surely, you rely on your dropshipping business to make money. No sale means you are paying for your overhead like your website maintenance costs without money coming in. Worst, you have no money to spend for your day-to-day living if dropshipping is the only business you have.
For one, you need to stop dropshipping from China. This is only for the meantime. Rest assured that the corona virus pandemic is not going to last forever.
The World Health Organization said that the vaccines should be available in March, 2020. Once the vaccine is ready, we can expect that business will slowly creep back to its usual state.
For now, stop dropshipping items from China. You need to do this, or suffer the consequences of returns and cancellations.
Think about this: if a cancellation was made when the item was already shipped, you are not getting your shipping money back. And if you insist to your customer that you cannot refund the shipping cost, you are in for a big trouble. Your customers will dislike you, and they would ruin you on your social media accounts.
Worse, the shipped items may be embargoed and burned. In that case, you lose money, the supplier loses, money, and your customers would also lose money.
If you continue getting products from China, you are not helping yourself. You are going to open a can of worms—of problems—that you would have to deal with.
If you need to continue dropshipping, you must sell products that come from a country that is not infected, such as the US, UK, and others.
You can sell t-shirts by using print-on-demand services, such as Printify and others.
The best course of action for now is to shut down all your Chinese product pages, or make them not available. Better yet, deactivate them.
If you all your products are from China, then you are better off deactivating your dropshipping store for the meantime until the vaccine is ready and used to cure those who are infected.
Once the vaccine is available, you must wait until they get distributed to the country where you are selling Chinese products to.
While the Corona virus is generally not dangerous, it is the new strain, the 2019 n-CoV, that is causing the scare. As an entrepreneur, you have a moral and ethical obligation not to spread this virus. So we are counting on you to do the right thing.
Stop dropshipping dorm China for the meantime, and focus on dropshipping goods from local suppliers who will also ship to their own countries.
You can do this easier with dropship suppliers like SaleHoo, Spocket, and Dropified. With these tools, you can filter out those suppliers who are from China, and then concentrate your dropshipping business model on non-Chinese goods.
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