What Is the Chinese New Year and How Does It Affect Your FBA Business?

The Chinese New Year is fast approaching. Familiarize yourself with the holiday – and how it affects your Amazon business.

In a few weeks, the Chinese New Year will begin, presenting a unique set of challenges for Amazon FBA sellers. For new and existing sellers alike, the holiday requires planning and attention to steer your business toward success.

When Is It?

Friday, February 12th marks the beginning of the Chinese New Year. While the celebrations can last up to 16 days, only the first seven days are considered a public holiday.

The upcoming year is the Year of the Ox. According to the Chinese zodiac, the Ox represents hard work and honesty.

What Is It?

In short, it’s one of the world’s largest celebrations, with estimates of over a billion people taking part in the fun.

The arrival of a new year is celebrated across China, with customs and traditions varying by region.

In Chinese culture, dragon dances are common for the Chinese New Year, as they symbolize good luck.

With customs and traditions varying by region, spectacular celebrations take place all over the country. Often referred to as the Spring Festival, Chinese New Year festivities are known worldwide for their glitzy fireworks display, Lantern Festival, and traditional dragon and lion dances.

During these traditions, all major businesses in China and Taiwan shut down for the holiday’s duration. These businesses, including factories, shut down for at least one week and could close for up to three weeks. Of course, this results in a pause in production for those depending on products from China’s robust manufacturing industry.

What Does This Mean for Amazon Sellers?

Since many Amazon FBA sellers source private-label products from China through suppliers such as Alibaba, the manufacturing halt can leave sellers vulnerable to inventory shortages if not navigated appropriately.

At this point, sellers should no longer expect the fulfillment of new orders before the holiday. Unfortunately, there’s little you can do to stock up if you haven’t already placed an inventory order. Marking your calendar in the months leading up to Chinese New Year would be wise.

If you’re a new seller leaping into FBA, understand this could complicate and delay your entry into the marketplace.

As you’d imagine, a heavy backlog of orders builds before, during, and after the celebration. Due to this, anticipate lengthier delays in months ahead as factory workers fulfill backlogged orders.

To successfully navigate through the Chinese New Year and the obstacles place in front of you is to communicate. When selecting a manufacturer, the importance of strong communication cannot be understated. Many suppliers with strong communication skills reach out to sellers in the months leading up to the Chinese New Year to effectively maneuver through manufacturing speedbumps.

If you have yet to have these conversations with your manufacturer, contact your manufacturer ASAP!

Don’t Sacrifice Quality

Additionally, the logjam of orders encourages speedier work. As workers rush to fulfill your order, quality may take a hit. But rushing orders by sacrificing quality leads to compounding problems for Amazon sellers.

Utilizing a China Quality Inspection company helps ensure quality control and save yourself from returns, negative reviews, or any of the potential consequences from quality issues.

While the holiday can disrupt your typical workflow, it’s important to empathize with your manufacturers and respect cultures! You may even consider buying your contact a gift to celebrate the occasion, especially if they have a history of going above and beyond for you.

In the hunt for FBA success, many forget or downplay the significance of the human element. But the benefits of a great working partnership far outweigh the cost of a token of your appreciation.

Best of luck in 2021 and the Year of the Ox!

What adjustments are you making for Chinese New Year? Leave a comment and let us know!
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