How to Keep Your Dropshipping Business Profitable During the Chinese New Year 2020

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of www.productmafia.com the worlds best product research agency for Dropshippers.
5 min read

The Chinese New Year 2020 celebration can impact your dropshipping business operation when you’re sourcing products from China.

 

Chinese businesses and offices take a week off to celebrate Chinese New Year – the biggest holiday being celebrated in China. However, most factories halt production 1 – 2 weeks before the holiday. This means a two to three weeks delay in the shipment of customers’ orders.

If you’re dropshipping products from China, the product delivery will be delayed which may cause a deluge of complaints coming in. Higher rates in refunds and chargebacks are also possible as most customers cannot wait that long to receive their purchases. Yet, stopping your dropshippping business operation during this period is not the solution because it can inspire fear and distrust to your customers. You don’t want to scare them off by accepting their orders and closing down a week later, do you? When this happens, the consequences would be too much for you to handle.

So what should you do to keep your business afloat without worrying about chargebacks and bad reviews?

The answer is simple. Just implement the measures that I’ll be discussing in this article! However, you’ll have to understand first why Chinese New Year is such a big thing in China. This way you’ll know what to expect when this holiday comes and be able to make necessary adjustments in your business.

 

 

What happens in China during the Chinese New Year?

During the Chinese New Year, it is the custom for Chinese families to reunite and spend as much time together as possible. The home and family become the focus of everyone’s attention. Chinese from all over the world travel back to their family’s roots in China to celebrate this ancient tradition. The Chinese government made it into a 7-day vacation which is why the celebration takes a lot of time.

The Chinese New Year is also called the Spring Festival. Everyone at this time of the year just wants to rest, relax, and enjoy which is why all government facilities, postal offices, banks, stores, factories, and other establishments close down in China. The Chinese New Year 2020 will take place on January 25th but it will be celebrated on different dates in the coming years. Make sure to note the exact dates so you can plan your business strategies and stay profitable during the Chinese holiday period.

Chinese New Year 2021: Friday, February 12

Chinese New Year 2022: Tuesday, February 1

Chinese New Year 2023: Sunday, January 22

Chinese New Year 2024: Saturday, February 10

Chinese New Year 2025: Wednesday, January 29

Chinese New Year 2026: Tuesday, February 17

Chinese New Year 2027: Saturday, February 6

Chinese New Year 2028: Wednesday, January 26

Chinese New Year 2029: Tuesday, February 13

Chinese New Year 2030: Sunday, February 3

Although factories stop production weeks ahead of the holiday, many suppliers and manufacturers have sufficient stocks to keep them selling products until the holiday week.

What are the business measures you can do to lessen the impact of the holiday?

The Chinese New Year indeed affects dropshipping businesses. They would close down on an average of a week or two but not for a month.  Just make some adjustments in your dropshipping store and marketing strategies until your suppliers are back to normal operation.

Here are the necessary actions to do to prepare your dropshipping business for the Chinese New Year 2020.

 

#1 Contact your suppliers.

To get the exact dates that your suppliers will temporarily shut down, you have to contact them directly. It will take some time if you have multiple suppliers but the result will be worthwhile. Write them a message asking their exact vacation period so you will have an idea of how your working schedule will be in the coming weeks.

 

#2 Edit the info about your delivery terms and shipping times in your website pages.

Change your estimated shipping times in your FAQs page, shipping policy page, product page, and other pages in your site to reflect the longer shipping period. You can revert to the original info once your suppliers are back on business. This way, your potential customers will be informed of the longer shipping times before they order any of your products.

 

#3 Notify potential customers about the delivery times.

If you don’t have a problem with letting your customers know that you’re sourcing products from China, you could easily create a banner announcing the delay in delivery due to the Chinese holiday. You can then post it on your website and social media accounts.

However, if you don’t want to divulge that you’re dropshipping from China, you can create a banner about the temporary delay in the processing of requests and the arrangement of deliveries. You can use the sudden increase in the number of orders received in your store as the reason for the delay. Post the banner in obvious places on your website and social media pages so people won’t get the wrong expectations. If your business has a Facebook page, pin the post at the top of your page. Make sure to link the banner directly to your shipping page for detailed info.

 

#4 Hide products temporarily on your website.

If the supplier of a specific product will take more than a week off, you might want to temporarily hide the item in your store so customers will not see it. Spend less on ads for this product and promote instead products from non-Chinese suppliers. If you’re exclusively dropshipping products from China, don’t advertise products until your suppliers are back from their holiday.

 

#5 Answer promptly communications from your customers.

Be attentive to your customers’ emails, messages, comments, and calls during this period to answer their concerns and questions. Respond within 24 hours to reassure customers that their purchases will be delivered to them. For those who decided to place an order on your store despite the longer shipping times, create a template email that will be automatically sent to them upon completion of checkout.  Inform them again of the expected shipping times and to contact you if they have questions.

 

#6 Continue marketing your brand and products on social media.

You might stop running advertisements during the holiday period but, you can continue marketing dropshipping products in your social media pages. Post multiple times on social media and respond to comments and messages regularly. This helps in reassuring customers who have already ordered that you are still in business so they will not rush out to request a refund or file a chargeback. Also, by staying active on social media, you can continue building relationships with potential customers.

 

Key Takeaway

Your dropshipping business might experience some hiccups during the Chinese New Year 2020 but there are ways you can mitigate the impact. Implement the measures discussed in this article already to keep your business profitable through the week-long Chinese holiday.

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of www.productmafia.com the worlds best product research agency for Dropshippers.

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