Updated: 2024-12-14 15:05:53
The Spring Festival, widely known as the Chinese New Year, is the most significant holiday in China. It’s a time for Chinese families to reunite and exchange best wishes for the upcoming lunar new year. Typically, the holiday lasts 10 to 15 days, during which office workers begin taking gradual leaves, manufacturers halt production early, and shipping companies limit their operations.
For 2025, Chinese New Year falls earlier than usual, running from January 28 to February 3, leaving less time for retailers relying on Chinese supply chains. The potential issues include, but are not limited to: product supply shortages, logistical delivery delays, communication inefficiencies, and delayed after-sales. Compounding these issues is the ongoing uncertainty around global tariff policies, making preparation more critical than ever.
Then, how to avoid product supply shortages and shipping delays during the holiday shutdown? How to reduce the impacts and ensure your store's performance for the coming 2025? In this article, we will discuss the potential impacts of CNY 2025 on your business and what you can do to avoid supply chain disruptions as possible.
The Chinese New Year shutdown mainly affects dropshipping and businesses that mainly source products from China. To be fully prepared, it is important to understand what the Chinese New Year shutdowns are and how they may affect your business through supply chains.
As the Spring Festival approaches, suppliers and Chinese manufacturers will be the first to stop work. Entering January, the overall production in China will slow down. Most manufacturers will gradually shut down, and they won’t resume supply until the end of February. During such a long period, you will face the risk of product supply shortages and stockouts, which will have a significant impact on your business.
If you do not communicate with your supplier about your sales plans and stock up on sufficient inventory in advance, once the supplier or manufacturer of your product shuts down, finding a replacement during the CNY holidays can be really hard.
Most shipping companies will begin to limit operations as Chinese New Year approaches and stop picking up packages, shipping, and delivering a few days before the Spring Festival. And they won't resume operations until at least after the holidays. Only a few shipping companies continue to work during the holidays.
So, the shipping and delivery times may be affected from now on and shipping costs can rise at the end of the year. To ensure timely delivery during the holidays, you may have to switch to shipping methods that are still available but may cost more than usual.
After the Spring Festival, most employees will return to work and manufacturers will gradually resume production, but there may still be labor shortages in a short period.
On the one hand, some employees will leave for new jobs and manufacturers will have to hire new employees. On the other hand, manufacturers will face a large number of orders accumulated during the shutdown period, and the overall delivery time may be delayed.
Before the holidays, some manufacturers will rush to work in order to take leave early. And after the holidays, they will hire new employees, who will then replace the skilled employees. All these factors may lead to an increase in product quality issues.
So, to avoid your customers receiving substandard products, it is crucial to ask your suppliers to strengthen product quality inspections before and after the Spring Festival.
Suppliers and manufacturers will slow down or even stop production the time before the holiday starts. However, the specific shutdown time varies. It is recommended to ask your suppliers or manufacturers about when they will stop supply and plan ahead if necessary. You can first refer to the following Chinese New Year timelines of 2025:
• Late November: Manufacturers gradually slow down production.
• Mid January: Manufacturers start shutting down, shipping companies announce holiday arrangements and gradually stop picking up and shipping, and office employees gradually leave for the holidays.
• January 28: Chinese New Year's Eve, almost all employees stop working.
• January 29: Chinese New Year
• February 5: Most employees return to work and shipping channels gradually resume.
• February 12:The Lantern Festival
• Mid February: Most manufacturers resume production.
• End of February: Almost all operations return to normal.
As 2025 approaches, it brings a mix of new opportunities and challenges for dropshipping businesses. For those working with Chinese suppliers, the upcoming holiday shutdown isn’t the only concern—tariff increases under the Trump administration are also on the horizon. Although President-elect Donald Trump will officially take office on January 20, he has pledged significant tariff hikes on goods imported from Mexico, Canada, and China starting on day one. These changes will likely place additional strain on dropshippers sourcing from China and selling in the US. It’s crucial to factor in these tariff challenges while preparing for the Chinese New Year shutdown, as the policies could take effect before the holiday begins.
With the uncertainties and force majeure factors, what preparations can you make now to avoid or minimize the potential impact of the Chinese New Year shutdown on your supply chains? Based on our experiences, we have summarized the following tips for you.
A comprehensive plan is required to set your business smoothly for the next two months. It includes your marketing plans, sales plans of your products, inventory planning, and other plans to deal with emergencies.
You can consider appropriately reducing your advertising budget during the Spring Festival to avoid sudden order volume increases that may cause stockouts and delivery delays. It is recommended to plan and prepare some inventory for the products you are selling based on your estimated sales volume for at least one month.
Close communication with your supplier can help you respond to shortages, delays, or any other potential problems throughout the Spring Festival in a more timely manner. The first thing you should do with your supplier now is to confirm the available inventory and shutdown time of the product manufacturer. If your products are already out of stock and stop production, then you should look for alternatives as soon as possible!
At this time, working with private suppliers will be risky as they usually stop accepting orders early before holidays. It is recommended to work with trustworthy China sourcing agent platforms like SourcinBox, who have extensive experience in dealing with Chinese New Year shutdowns.
If you are working with SourcinBox now, it’s time to communicate with your customer manager about your sales plan and inventory needs. And don’t be too stressed out about product shortages, there’s still a chance we can help you find alternative manufacturers to save your business. Just to be sure, it's a good idea to plan some inventory ahead of time.
If you have a sufficient budget, you can purchase an appropriate amount of products in advance from the manufacturer as inventory. And finding a sourcing agent who can hold inventory for you in China during the CNY shutdown will be necessary. Remember that your inventory planning should include your current products as well as what you plan to sell in February(after the Spring Festival).
For SourcinBox users, after confirming with your customer manager, you can then easily pre-purchase the inventory you need on our app. We will source the corresponding quantity of products from the manufacturer and store them in our warehouse for free after checking the quality. And our warehouse will be operational until the last minute before the holidays to process your orders and resume working early before the holidays end to ensure as timely shipping as possible.
Most shipping companies will only take a short off for the Spring Festival to cope with the continuous demand for orders. Since there may be manpower shortages before and after the holidays, the shipping capacity will be limited. It is recommended to consider alternative shipping options and increase the budget for shipping, which is important to avoid delays and gain the trust of your customers.
On SourcinBox, there will still be available cost-effective shipping options during the holidays, you can keep in touch with your customer manager to learn about what shipping methods you can use as the holidays approach and make necessary adjustments.
During the special period of the Chinese New Year shutdown, it greatly counts to strengthen customer service. When facing increasing customer issues, timely and effective solutions can reduce bad reviews and refunds at the root as well as increase store credibility. Besides, you can provide clear return and refund policies and after-sales support contact information in the store to deal with customer problems on time and also improve customer satisfaction and retention.
Of course, keep a close eye on the status of your orders by keeping a close contact with your suppliers. Provide timely feedback to your customers for out-of-stock and shipping delays. For unavoidable situations, remember to change the inventory information, shipping method, and delivery timeliness displayed in your store in advance. Notification via email or social media to your customers with a sincere apology can win you more favors.
In preparing for potential problems during Chinese New Year 2025, please keep in touch with your customer manager for timely solutions. You can also keep an eye out for our latest notifications on various platforms which will update with the latest information. We'll respond to you as soon as possible and help out with any concerning issues even during the holidays.
We sincerely hope this article can give a hand to businesses sourcing from China. Plan ahead can effectively avoid possible losses caused by supply chain disruptions and shipping delays. If you want to work with SourcinBox and buy inventory now, please sign up for free and contact us to enjoy 1-on-1 customer manager service. We will do our best to escort your business during the Chinese New Year.
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