Chinese New Year, also known as the Spring Festival, is a major holiday in China and other parts of Asia. It is a time for people to celebrate the beginning of the lunar new year and to spend time with family and friends. In 2023, Chinese New Year begins on January 12th, and lasts for about three weeks. For eCommerce businesses, Chinese New Year can be a busy and lucrative time, but it can also present a number of challenges when it comes to the supply chain.
For eCommerce businesses in the United States, Chinese New Year can present a number of challenges. One major challenge is the impact on the supply chain. Many factories and businesses in China close for the holiday, which can lead to delays in the production and shipping of goods. This can be especially difficult for businesses that rely on just-in-time inventory systems, as they may not have sufficient inventory to meet demand during the holiday period.
Another challenge is the impact on the labor force. Many people in China travel home to be with their families during Chinese New Year, which can lead to a shortage of workers in certain industries. This can make it difficult for businesses to maintain their normal levels of production and service. Quite often, eCommerce sellers will want to make an order at the tail end of BFCM (Black Friday/Cyber Monday) in order to make the holiday deadline.
For eCommerce sellers, it is important to be aware of these challenges and to plan ahead to minimize their impact. In order to prepare for these challenges, eCommerce businesses can take a number of steps. Here are a few things to consider:
- Plan ahead: It is important to have enough inventory to meet the increased demand that comes with the holiday period. Make sure to order enough goods from your suppliers in China well in advance of the holiday to ensure that you have enough stock. Consider the potential for shipping delays or other disruptions that may impact your supply chain.
- Communicate with your suppliers: Reaching out to your suppliers in China in advance of the holiday can help you to confirm their availability and production schedules. This can allow you to plan for any potential delays or disruptions that may arise.
- Update your website: Make sure your website is up to date and includes any relevant information about your business during the holiday period, such as changes to your shipping and delivery schedule. This can help to ensure that your customers have the most accurate and current information about your business.
- Prepare shipping and delivery: Chinese New Year is a busy time for shipping and delivery, so make sure to book your shipping and delivery in advance to avoid delays. Consider offering express or expedited shipping options to meet the needs of your customers.
- Ask for a discount: Quite often, factories have excess products that will be sitting during the festival season. Offer to buy their remaining inventory/units, at a discounted price. A dollar today is worth more than a dollar tomorrow.
In conclusion, it is important for eCommerce businesses in the United States to have strong relationships with their vendors and suppliers in China in order to prepare for Chinese New Year. By communicating with them in advance and understanding their availability and production schedules, businesses can minimize disruptions to their supply chain and ensure that they have enough inventory to meet the increased demand. In addition, working with reliable vendors and suppliers can help businesses to offer high-quality products and services to their customers during the holiday period. By building and maintaining strong relationships with their vendors and suppliers, eCommerce businesses in the United States can be well-prepared for Chinese New Year and continue to serve their customers effectively.