Dropshipping warehouses and e-stores during pandemic

In the era of a coronavirus pandemic and associated isolation or home quarantine, online sales are the chance for business to survive. According to data from e-commerce platforms, e.g. Shopify, currently more and more new dropshipping warehouses and e-stores are being open, and those that already exist, in some industriesm are reporting much larger turnover.

According to the Shopify platform, the largest increase in transactions was recorded in the following industries:

1.Groceries;

2.Health and beauty;

3.Electronics and items for children;

4.Gift industry;

5.Books and multimedia;

6.Interior design and gardening.

The largest decrease is recorded in the following industries:

1.Sport and travel;

2.Clothing.

According to Google Trends, the popularity of the phrase “online shopping” in Poland has recently increased 20 times.

Pandemic forced remote work on most of us, we limit direct contact with other people to the necessary minimum. Therefore, shopping or other activities, e.g. dealing with official issues, are transferred to the Internet. Therefore, there has been a need for retailers or other businesses to adapt to realities and, for example, increase the budget for developing e-commerce channels. You can also see that the Polish market is doing well in this situation. Dropshipping warehouses have introduced adjustments such as contactless delivery, free delivery or express delivery to package machines on weekends. The situation definitely doesn’t look good as for the products imported e.g. from China, the United States, Italy or Spain. Here, warehouses (B2B) or consumers (B2C) will have to be patient while waiting for products ordered when pandemic began, which resulted in restrictions imposed on e.g. reloading ports or courier companies.

Another point that is worth paying attention to is that people who have so far reluctantly or not at all made online purchases have now been forced to do so now. If they see how easily and quickly you can do shopping without leaving your home, it will be difficult for them to return to the traditional form of purchasing goods. However, analysts from the State Institute of Economics warn that this vision may prove to be overly optimistic because ” the general digital competences of our society are still quite weak ”. According to data from 2019, 86.7% of households had Internet access in Poland, but less than 54% did online shopping (57.8% in cities and 48.1% in the countryside).

It is worth pointing out that the trading environment hates void and seeks balance with the help of the invisible hand of trade.

To sum up:

1.Some warehouses and e-stores are reporting a decrease in the number of transactions, while others, on the contrary, show staggering development.

2.The Internet has become a place of online shopping for people who previously only shopped in a traditional way. Time will tell whether these people even in the post-virus era will still use the online channels. According to analysts, this is possible.

3.Logistics challenges related to the pandemic have led to the emergence of offers that meet the needs of consumers, such as same-day delivery or weekend delivery. Logistics more and more often will be treated as an element of competitive advantage and added value to the company’s offer and not, like so far, as an inconvenient cost.

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