Yesterday's Price Is not Today's Price .... How Inflation Has Affected My Dropshipping Business.

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7 months ago - 2 minutes read

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Drop shipping began on a pleasant note for me, and it continues to be so. The only problem is that the rates my suppliers give are suddenly perplexing. Something I bought for $10 approximately a month ago is now worth well over $30!

Some customers eventually cancel their orders, and I lose money as a result. Nothing irritates me more than a canceled order. However, I do not blame them. Shipping costs have more than quadrupled since the naira's depreciation against the dollar. It was so bad that $1 was nearly equal to #1,000.

Nonetheless, the naira's value against the dollar has increased somewhat during the last three days.

At the time of writing, one dollar was worth between #750 and #800. Naturally, one would expect business owners to keep this in mind whenever they overcharge a seller. But, as we Nigerians say, "whatever goes up (the price of an item) never comes down." And that is exactly what has happened.

There have been rants left and right over the naira's free fall against the US dollar. However, once it began to gain traction, the ranters have gone silent.

To be honest, the past month was a struggle for my small business because of how pricey things have become. My revenues dropped significantly.

Another major problem I currently struggle with is shortages.

Formerly, my suppliers would bring in large quantities of items in order for the goods to be distributed to all of the retailers and drop shippers like myself. But suddenly, before I can yell JACK ROBINSON, I hear SOLD OUT. For example, my supplier sent me an image of these very gorgeous shoes for women, I reposted it and got about 5 orders in one night. I reached out to my supplier but she didn't have any left. I was pained to my marrows because I could have made a handsome profit that night.

Here's why; the money they spend on up to 50 goods will now only cover 30. Furthermore, their shipping costs have more than quadrupled.

Low-key, I'm glad when the dollar rises against the naira since it implies my profits on Hive will rise; however, when I realise that with the naira's depreciation comes an intolerable increase in the cost of products and services in general, I'm sad.

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