Drop Shipping in 2022 – Supply Chain Issues & Inflation

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If you’re in the dropshipping business, you know that the two main factors affecting the industry right now are supply chain issues and inflation. Both have the power to deeply impact businesses, since dropshippers depend on being able to access items, and then being able to sell them for a profit.

This article will explain the root causes of both these problems, as well as provide some insight on how you can best address the situation at hand.

What’s Happening with the Supply Chain?

Covid caused a major upheaval in the supply chain, and people felt the impact of the pandemic worldwide. Although many of those issues had since been resolved, in the past few months, supply chain problems have come to the surface once again.

This is largely due to a recent bout of Covid rearing its ugly head in China. This led to factories closing—and companies being unable to produce and distribute their products. With fewer products coming in from China, many U.S. warehouses are sitting empty. Which made an extremely detrimental impact if you’re selling for a limited number of brands.

supply chain

In any business, there are factors that contribute to the overall riskiness of the endeavor. In the dropshipping world, being too reliant on too few suppliers puts your business in an especially perilous position. It’s a reality many dropshippers are facing with the latest wave of supply chain disruptions.

The delays in the supply chain have the potential to disrupt almost anyone. If you only work with a few suppliers, today’s climate will put your business at risk for the following:

  • Decreased valuation
  • Profit loss
  •  Difficulty selling your store

How to Overcome the Supply Chain Crisis

Businesses don’t exist in a vacuum, and no one is immune to being impacted by world events. However, there are…

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