Every year, the eCommerce industry anticipates Q4. The end of the year is here, the holiday season has arrived, and online spending has increased by more than twice compared to Q1-Q3. Q4 is the best time to get into eCommerce and reap its benefits.
This article will explain everything you need to know about dropshipping during Q4, including why it is important, how to do it during Coronavirus pandemic, and which Q4 products you can dropship during the holiday season.
Dropshipping during Q4
Dropshipping in Q4 is the most profitable period of the year. Every year, sales records are broken and they’re growing.
Let’s look at the numbers to show you what we mean. The 2019 US Holiday Season exceeded the $1 trillion mark in terms of sales. This graph shows the expected holiday spending and compares between in-store and online purchases.
Online shopping is at 59% while in-store spending is at 36%. Combine that with the COVID-19 sharp shift to online shopping, and you can expect a greater difference between them.
In the holiday season of 2019, an average of $2.3 trillion was spent. This is a staggering $200 million increase over the previous year. Additionally, 65% buyers look for holiday products online. We know that most people prefer to shop online for holiday products, which is a huge leap from in-store shopping.
This graph shows what AutoDS users felt during the holiday season in 2019.
The average holiday season order value is $152.95 with an average family spending $1.496. The Q4 is the most profitable quarter of the year because shoppers spend more than they did in the first three quarters.
How Coronavirus (COVID-19), Is Impacting Ecommerce & Dropshippers
There have been many amazing surprises this year, none of which could be predicted. The spread of COVID-19 was a global threat when it became apparent that it was threatening the entire world in March.
The majority of online shopping has replaced physical stores, which are still closing down today. Many people lost their jobs. On the other hand eCommerce made a huge leap forward. We saw a sharp rise in sales here at AutoDS and all dropshippers. Lior Pozin (CEO of AutoDS) posted a weekly sales chart of all dropshipper sales between mid-March and the peak.
Everybody in the eCommerce industry noticed an increase in online sales in March – and it has continued to rise since then. We’re not talking about dropshippers. Since March, ecommerce giants eBay have offered bonuses each month to help sellers increase their sales and profits over a long period.
First, eBay stated that they were protecting sellers’ performance during COVID-19. Late shipments would not affect seller performance or count against them, since they understand that shipping carriers experience significant delays. The situation was understood by buyers, and the sellers were not affected.
On March 23, eBay surprised everyone by offering 100,000 free eBay listings for anyone who has a store subscription through April 31st. This bonus incentive is intended to encourage sellers to test thousands of new products, and to become successful sellers during the pandemic.
Dropshippers will find this a huge advantage as dropshipping doesn’t require you to hold or pay for physical inventory. This means that testing thousands of listings is free with a 0$ charge.
As if that weren’t enough, eBay offered 50K free eBay listings to anyone who had a store subscription. These bonuses can save you hundreds of dollars per month on store subscriptions. Anyone who takes advantage of these promotions will take their dropshipping business up a notch.
eBay helps sellers in difficult times and makes them more profitable. They offer tens to thousands of listings for free, which proves they support the big number rule strategy. Anyone who has used it in this time period has seen the difference.
We also published an article about selling during Coronavirus, in which we discussed all the niches that can help you maximize your profits during COVID-19.
Lior created a poll in the AutoDS dropshipping community Facebook group to hear directly from sellers about their dropshipping experiences during the pandemic. 79% of respondents stated that they increased the scale of their dropshipping company. 15% slowed it down and less than 1 percent didn’t make any adjustments.
This shows that most sellers know when it is time to scale up and take advantage of opportunities to maximize their profits.
What to Expect during the Coronavirus Year Q4 Holiday Season.
Mix it with the changes in consumer behavior since COVID-19 and the holiday season is over, and you’ll have a recipe for new success. These are some of the things you can expect in 2018, as eCommerce continues to make impressive strides forward.
Many people send holiday gifts to loved ones. 88% intend to continue buying gifts online to send to their loved ones.
Due to the pandemic, thousands of people will be shopping online for the first time this year.
The same survey also revealed that 52% Americans have switched to cooking at home since the crisis began, which gives strength to the cooking and kitchen niches. 50% have switched to spending more time indoors and are now supporting the home entertainment industry. 36% have started to exercise from home, strengthening their home fitness niche.
Usually, more 25% holiday spending is spent on socializing away at home. This year, however, will be different. This year, there will be fewer flights and fewer dining out. There will also be fewer overnight stays at resorts.
These new behaviors and changes caused by the unexpected Coronavirus are fueling eCommerce’s growth and dropshipping.
What numbers can you expect for this year? One, retail spending will increase by 3.4% up to $1.042 billion. This is a staggering number. eCommerce will increase by 13.9% to $156.69 trillion. This is a significant increase in comparison to retail spending, and it shows where online shopping is headed.
Where do buyers spend their holiday money?
Buyers will spend more on personal and home items this holiday season than they will on outdoor products.
Deloitte’s report shows that the top category in holiday spending is Clothes & Accessories (clothing and footwear, etc.). With a 26% overall share of holiday spend. This is more than 25% of holiday shoppers’ total holiday spending. 73% total shoppers will purchase products from this category with an average spending of $387 for each buyer.
The Food/Beverage/Health section is second with a 20%total holiday shopping basket share. 70% total shoppers will purchase from this category with an average of $310/buyer.
Third is Toys & Hobbies. holds 17% share of holiday shopping basket shares. 64% buyers will purchase from this category with an average of $299/shopper.
Next comes the Electronics & Accessories category, which includes computers, tablets, smartwatches and other electronic devices. 15% is the holiday basket share. 47% shoppers will purchase from this category with an average of $348 per customer.
The Kitchen (home improvement, kitchen appliances and furniture) is the Home and . This category will take 9 of holiday basket share and 36% total shoppers purchasing from this category.
The average buyer spends $280. The remaining categories will be 13% and 36% respectively.
The average holiday spends $418 for each buyer. You should ensure that your Q4 dropshipping products are included in these categories, while also exploring new niches you haven’t tried before.
When and What Holidays are Coming Up?
Halloween (October 31, 2020)
Halloween is the spooky holiday everyone loves. It will take place on October 31st just like every year. It’s not only Halloween masks that are being bought out, but there is also a lot of holiday spending.
You can make the most of Halloween by reading and implementing t the top Halloween products you can sell on your dropshipping shop in 2020. This guide is packed with Q4 dropshipping product ideas and insights that have been successful in previous years. The sooner you start, the better.
Here is a peek at some of the most popular products in the guide:
Thanksgiving (November 26th).
Thanksgiving will be the first holiday of Q4 and it will take place on November 26, 2020. Thanksgiving-related products are expected to continue selling like crazy after seeing a significant increase in sales compared to the previous year. Given all the information that you have read, this year will see a larger number of sales.
Start preparing now for Thanksgiving if your store isn’t ready. To help you make this year even more successful, we have created a guide that will show you which products to sell on Thanksgiving. Here are some of the most popular Q4 dropshipping products you’ll find:
Cyber Monday (Nov 30th), Black Friday (Nov 27th), and Cyber Friday (Nov 30th).
Black Friday (November 27th,), followed by Cyber Monday (November 30th,), are the two biggest shopping events in the world. These events are held right after Thanksgiving and offer huge discounts to consumers in all categories.
The retailer started it as a way to get rid of excess inventory at the end and make way for the new year. Black Friday quickly became an eCommerce phenomenon due to the dramatic increase in consumer buying habits. Cyber Monday will follow, which gives sellers and buyers an additional opportunity to reap the benefits of the sales and discounts.
It’s not easy to prepare for these events, but it is definitely worth the effort. This guide will help you dropship during Cyber Monday and Black Friday 2020. This guide contains valuable information about how to prepare your dropshipping shops and Q4 dropshipping products for making a killing in 2020.
Did you know that Baby Nail Trimmers are on the rise? All this and more.
Christmas (December 25th, 2020)
Last but not the least Christmas , which will take place on December 25,. With the rise in eCommerce and Q4 holiday spendings, Santa Claus will be digitally more generous this year.
Every year, many Christmas gifts and products are purchased. This year will be even more special than the previous. You can see the complete list of products you could dropship during the Christmas Holiday 2020. This Christmas guide contains tons of Q4 trending dropshipping product ideas.
This 14-minute read will provide you with valuable information that will help increase your Christmas sales and grow your dropshipping business.
Do not miss out on another holiday!
It can be difficult to keep track of all holidays and plan for them on time. Dropshippers often forget about these holidays and only realize it when they are too late. It’s too late as other sharks are swimming in the waters ahead of you.
The Holiday Calendar will ensure that you don’t miss any holiday events. It is completely free and constantly updated. Start planning for 2021 now with your calendar. The guide below has everything you need for the rest of the year.
Q4 Dropshipping Tips
WHAT IS Q4 ROPSHIPPING?
Dropshipping in Q4 refers to dropshipping during the fourth quarter of the year. It is also dropshipping within the last four months. This dropshipping season begins in October and continues through December.
Dropshipping is important in the last quarter of the year for many reasons. We will discuss these in detail. We will also reveal some things you should expect during this period.
COMMON MODIFICATIONS IN Q4
Certain changes take place during the final quarter of the year. These changes can be used by dropshippers to grow their business and make profits. What makes Q4 special for dropshippers and what are the key changes? Let’s find out below.
Sales Increase
Statista reports that the percentage of ecommerce sales increases each year as it nears its end. In quarter 4, people are more likely to shop online than in brick and mortar shops. People are not expected to wait in long lines at retail stores due to this year’s pandemic. This is in accordance with social distancing rules. They will shop online.
Customer Service
E-commerce sellers usually experience an increase in package processing during quarter 4. This is because more products are purchased from their store. Due to the increased processing of packages, delivery times may be longer than usual. You will be better off preparing for this occasion by establishing channels to ensure that orders are delivered when they are due.
Higher Marketing Costs
Increased marketing costs across all platforms is one of the most common changes in Q4. Don’t panic if this happens. The sales will offset the marketing costs. This is because people are more likely to buy products online during the last quarter of the year.
TIPS FOR PREPAREING YOUR DROPSHIPPING SHOP FOR Q4
These are the top tips for preparing your dropshipping shop for the final season of the year.
Utilize Email Marketing
You can reduce marketing costs by setting up an email campaign, as marketing costs are expected to rise during Q4. Email marketing will allow you to sell huge quantities of products and services without spending a lot.
Contact Customer Service
You will likely experience delays in shipping products during Q4. Customers will want to find out what is causing delays in the shipment of their products. Your customer service team will be able to address such requests and help them. It is a good idea to hire a virtual assistant for customer service. This will allow you to focus on other areas of your business.
Get Special Discounts
You have the chance to offer discounts and increase sales during Q4. People shop online during Q4. Dropshippers have the opportunity to offer discounts and increase sales.
Monitor Order Fulfillments
This important metric will ensure that your dropshipping business does not face any risks. You should check if there are any backorders or cancellations. These can all lead to your seller account being suspended during this wonderful time of year.
Conclusion
You still have plenty of time to prepare for Q4’s holiday season. You can profit now from every one of them, and not feel like you are missing out on the next holiday season.
The Q4 dropshipping product guides and strategies, as well as the Q4 dropshipping strategies, are all available. This will make your Q4 profitable and successful. An eCommerce calendar is also available to help you make the most of future holiday opportunities.
This year is very different, as you can see. Consumer behavior has changed due to the Coronavirus, with more people shopping online. Dropshipping is at an all time high and it won’t be going away anytime soon. It’s the right time to act now – let us crash this Q4!
