Recently, a new outbreak of COVID-19 was reported in Yiwu. From 00:00 on August 11, the city implemented temporary area-wide silent management for 3 days. During the silent management, public places in addition to medical institutions are suspended operations.
Influence on E-commerce
More than 2.1 million kinds of goods sent to more than 230 countries and regions, Yiwu is known as the “world capital of small commodities. Under silent management, how is the logistics operation there and how suppliers in Yiwu deal with the orders processing?
An e-commerce supplier from Yiwu replied because of the prevention and control of the epidemic in Yiwu, it needs to wait for the courier to resume and then disinfect the goods for shipment in the order of payment.
Vehicles have been banned from entering or leaving the city, except those related to coronavirus control and delivery of necessities.
China’s zero-Covid containment strategy relies on stringent lockdowns, mass testing and quarantine in government facilities to protect people. But the policy has severely disrupted businesses, frustrated foreign investors and slowed economic growth.
There is also a factory in charge of exporting household decorations told that it received a notice this morning, and the factory has now been completely shut down as required.
“Now is peak production season, and the current suspension makes deliveries very difficult.”
How can Ecommerce owner do?
1. Check if your supplier has warehouses in other cities as a transit
A good supply chain creates more flexibility for your business growth, you don’t need to worry about the supply and shipping.
Once lockdown, it has many warehouses in different cities in China as alternatives.
2. Ask suppliers in other cities
There are numerous suppliers located in different cities in China, you can contact them as a alternative once accident occurs.
3. Using 3PL company
3PL fulfillment companies work as an intermediary body between the retailer and an online buyer. A retailer buys products to sell online in bulk and gives them to the 3PL company.
Why using a 3PL is better in 2022
Lots of Chinese cities are on lockdown due to COVID-19 (including many important economic production cities such as Shanghai), suppliers can not produce goods, and they can not ship out anything.
Even though you have a sourcing agent who can handle the connection of suppliers for you, they can not get products from suppliers in those lockdown cities, and the waiting is endless.
In the dropshipping method, you don’t have control over the production efficiency and shipping speed. Also, you don’t know from which city the manufacturer is in that particular order. As a result, the shipping process can get slower and more costly. In the long run, slow productivity and late delivery may affect your customer satisfaction ratio.
