The Chinese New Year is a beautiful cultural event, but it can be a little tricky for dropshippers.
That's because it's a nationwide celebration that practically brings all industrial activity to a standstill!
So, in this article, we’ll discuss how Chinese New Year can impact your dropshipping store and how you can prepare for it.
What is the Chinese New Year?
Chinese New Year, also known as the Spring Festival, is the most important traditional festival in China and a holiday season that has large effects on manufacturing businesses.
This festival is based on the lunar calendar, which means it falls on different dates each year, usually between January 21 and February 20.
The next Chinese New Year will start on January 29th, 2025, marking the year of the Snake.
Celebrations of Chinese New Year traditionally last for 16 days.
In 2025, the Chinese New Year runs from January 29th to February 12th.
As a public holiday, Chinese people will get seven days off from work from February 10th to February 17th in 2025.
Chinese New Year is a time for families to come together, which is why millions of workers across China travel from big cities back to their hometowns.
In fact, it's the largest annual human migration on the planet!
Bonus: Below you will find an ad from Nike that highlights a Chinese tradition during the Chinese New Year!
I think it's a great video to watch if you want to learn a bit more about their traditions.
The Chinese New Year’s effect on industries is significant.
Factories begin to slow down their operations one to two weeks before the festival starts, and it can take a week or more after the festival ends for them to ramp back up to full production.
During the Chinese New Year, factories must deal with lots of outstanding orders while having a significant reduction in their available workforce.
This leads to the following question:
How does the Chinese New Year affect dropshipping?
Yes, the Chinese New Year can significantly impact your dropshipping store.
As I mentioned earlier, factories in China begin slowing down production one to two weeks before the Chinese New Year and may completely stop during the festival.
This means that any products you order too close to the festival might not be manufactured in time.
Not only does production take a hit, but the processing of orders also slows down or pauses. This is because the workforce is significantly reduced, with many workers traveling back to their hometowns for the celebrations.
It’s common for this slowdown to extend a few weeks beyond the official end of Chinese New Year as many workers take additional time off to spend with their families, which means even if factories reopen, they might not be operating at full capacity immediately.
Then, there are the shipping disruptions.
The buildup of orders that cannot be shipped during the holiday leads to a backlog, and when operations resume, there’s a rush to clear this backlog.
This congestion results in longer shipping times and higher costs.
Many logistics companies also operate at reduced capacity during the festival, which makes the delays even worse.
Trying to get in touch with your suppliers during Chinese New Year can also be frustrating.
If you have urgent issues, you might have to wait until the holiday period is over.
Given these delays in production, order processing, and shipping, it's clear that the Chinese New Year can bring a fair amount of disruption to your dropshipping business.
Next, we'll look at which specific suppliers are most affected and how to identify them, so you can plan accordingly.
Which dropshipping suppliers close during the Chinese New Year?
Knowing which of your dropshipping suppliers will close during the Chinese New Year can help you plan better for what's to come.
Most dropshipping suppliers from China will have significant delays, and some even close down completely.
This includes suppliers like:
The fulfillment centers also operate at limited capacity, but many close, especially those that are smaller and family-operated.
While the holiday affects all of China, the length of closure can vary significantly by region.
Suppliers in major coastal cities like Shanghai and Guangzhou might reopen sooner because of their business-oriented environment. In contrast, businesses in more rural or inland areas may take longer breaks:
The type of products you are selling can also influence closure times.
For example, suppliers in the electronics industry often open up sooner to meet global demand, whereas traditional crafts and textiles have longer delays.
The best way to find out about specific closure dates is to ask your supplier directly. Make sure to do this well in advance, as they might not be responsive once the holiday period begins.
Often, suppliers also send out notices or update their websites with closure information as the festival approaches.
What to do with your dropshipping store during the Chinese New Year?
If you're currently running a dropshipping store and the Chinese New Year is coming up, here are some things you can do to prepare:
1. Set realistic delivery time expectations for your customers
If you plan on continuing to run your store during the Chinese New Year, one of the most important steps you must take is to let your customers know about potential delivery time delays.
As soon as you have an idea of the potential delays, update your shipping and delivery information on your website. Include a noticeable announcement on your homepage, at checkout, and in the FAQs.
It’s better to overestimate delivery times and have customers be pleasantly surprised by an early arrival, rather than the other way around.
Also, make sure that any automated emails, such as order confirmations and tracking updates, reflect the revised timelines.
2. Find other dropshipping suppliers as a temporary solution
If you discover that your dropshipping supplier will close down for multiple weeks, you might be able to find a supplier that will open earlier.
Maybe your supplier takes three weeks off, but you can find another supplier who only takes one week off.
You could then use that supplier until your main supplier is back, or you could switch to that new supplier indefinitely.
If you use AliExpress, just start messaging other AliExpress suppliers that are selling the same product, and ask them when they plan to close for the Chinese New Year and when they plan to open again.
Just don't forget to check the AliExpress supplier!
Another option is to find dropshipping suppliers that are not shipping from China.
For example, you can take a look at UK suppliers or maybe even suppliers in the US!
However, be aware that local suppliers might have higher costs than those in China.
3. Send inventory to a local 3PL
Another way to prevent the Chinese New Year disruption is buying inventory and sending it to a third-party logistics provider (3PL).
This is particularly useful if you expect to sell certain items in high volumes or if you want to keep quick delivery times during the holiday slowdown.
Try to find a 3PL located in a key market like the US or UK before the Chinese New Year begins. This way, even if your suppliers in China are closed, you can continue fulfilling orders.
The downside is that starting to use a 3PL does require some initial setup and investment.
You’ll need to manage the logistics of getting your inventory to their warehouse and understand their pricing structure, which typically includes storage fees and per-item fulfillment costs.
However, this cost often balances out with the benefit of keeping your customers happy with fast shipping times, especially when other sellers might struggle with long delays.
4. Pause your store and take the time to improve it
Sometimes, the best strategy might be to simply pause your store during the Chinese New Year.
See it as an opportunity to improve your business rather than struggling with delays.
Think about it: pausing your store avoids the risks of unhappy customers due to long shipping times.
During this break, you can focus on improving your website, optimizing your marketing, and planning future expansions.
Are there any tweaks you've been putting off? Maybe there's a new website theme you've been considering, or perhaps some product descriptions need refining.
This is also a great time to analyze customer data to understand better what changes could make the most significant impact.
Summary
Before we go, we've created a quick summary of this article for you, so you can easily remember it:
- The Chinese New Year is a traditional festival and a holiday season in China that lasts for 16 days.
- It leads to extensive factory shutdowns and delays in China, affecting production and shipping for weeks.
- To manage customer expectations during this period, set clear delivery timelines on your dropshipping store.
- Consider finding local suppliers in the US or UK to reduce shipping delays during Chinese New Year.
- Another strategy is sending inventory to a third-party logistics center to continue fulfilling orders.
- You can also choose to temporarily pause your store during the Chinese New Year to improve your website.
Conclusion
And there you have it, everything you should know about the Chinese New Year for dropshipping!
We hope our tip will get you through this Chinese New Year safely!
We wish you the best with your dropshipping store, and if you haven't started yet, then good luck when you're going to start!
Want to learn more about dropshipping?
Ready to move your dropshipping store to the next level? Check out the articles below:
- Can You Do Dropshipping With Suppliers Outside China?
- Can You Hide the Chinese Address When Dropshipping? (Guide)
- Can You Do Dropshipping With 1688? (The Same as AliExpress?)
Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!
