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Chinese New Year and What You Must Do to Prepare Your Dropshipping Business for It.

Updated: Jul 6, 2021

New year is usually the time of the year for families to gather together. What makes Chinese New Year different from new year celebrated in the Western hemisphere then? Instead of celebrating for one day, these celebrations in China last for 2 weeks. There will definitely be disruptions to the shipping and production of your products.

Chinese New Year disruption includes:

- 8-10 days off for couriers

- 15- 40 days off for factories

As this is the only time of the year where Chinese workers will be heading home to spend time with their family, literally nothing will be moving. So how then can you prepare your dropshipping business for this disruption?

Manage your customers’ expectations

No one likes to wait a long time for their online orders after payment is made. Speak to your supplier or dropshipping agent about how the supply chain will be disrupted. Inform your customers in advance about the delay in shipping time. Help them to realise that if they do not place their order by a certain date, their packages might take a longer time to reach them. Also, stocks available during this period of time will be more limited than other times of the year. Be transparent about how the disruptions of supply chain during Chinese New Year will affect their orders.

Adjust your marketing campaigns

The disruption during Chinese New Year doesn’t necessarily mean that you have to give up the momentum for your ad campaigns. Do forecasting for your stocks and adjust your marketing campaigns accordingly. You can still keep running ad campaigns for your dropshipping business. However, avoid upselling your products when you are low on stock volume during this time. Your suppliers and couriers will not be available AT ALL to fulfil orders!

Upselling your products during this time frame when your suppliers and couriers are not responsive will only result in disappointment on your customers’ part. This is something you will definitely want to avoid when you are running a dropshipping business. Customer reviews can make or break a dropshipping business and you would want to avoid the potential crisis of unfulfilled customer orders.

Take a rest if your dropshipping business has not been doing well

If your dropshipping business has been experiencing low profits or losses, you may want to take this time off as couriers and suppliers rest. Allowing your business to rest then will help you to minimise losses. When a business is not doing well, it is natural for anyone to want to put in more effort to produce better results. Don’t do that during Chinese New Year. Make better use of this time to reflect and plan your business strategies for the rest of the year. When the Chinese New Year holiday ends in China, there won’t be any other major holidays of such a long duration for the rest of the year.

Don’t test new products or scale your dropshipping business during Chinese New Year

The results of testing new products during Chinese New Year are usually inaccurate. Additionally, scaling your dropshipping business the is not a wise move at all. There are incidents when dropshippers suddenly experience a spike in orders from 10 orders a day to 100 orders a day. You never know if that may happen to you. It is a good problem to experience as a dropshipper. However, you probably won’t have enough stock to keep up with the spike in demand during this long rest period.

Plan your stock properly

If your account has been healthy, go ahead and plan your stock for this time frame. Now that you know how disrupted the supply chain will be during Chinese New Year, estimate moderately how much products you will have to stock up on. Don’t be afraid to shell out money to ensure that you will have your winning dropshipping products. Speak to your supplier right now on how you should stock up on products.

Speaking to suppliers may not always be ideal due to different reasons. Working with an established dropshipping agent to plan for Chinese New Year will be the best option for you. Make use of the dropshipping agent’s warehouse to stock up ample amounts of products during this time frame. Additionally, ask them how long will the couriers be on vacation for. A good dropshipping agent is usually effectively bilingual, minimising language barriers between you and your suppliers or couriers. With more accurate knowledge, you can make better plans accordingly.

As Chinese New Year is approaching, planning of product stocks for your dropshipping business is of urgency right now. If you have more than 30 orders per day and are looking for the best dropshipping agent, look no further! With over 30 years of logistics experience, Xianchao Logistics has been delivering quality products to clients on time. Let us know of your dropshipping needs here and we will get back to you ASAP!

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