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Prepare Your Amazon Business for Chinese New Year


Prepare Your Amazon Business for the Chinese New Year

All successful Amazon Sellers know the importance of maintaining a good inventory, stocked with the right amounts of the most profitable products at the right times in order to maximize their Amazon profits.


As the Chinese New Year approaches, it is important for you as an Amazon Seller to understand how the Chinese New Year impacts Amazon Businesses so that you can prepare your Amazon Business for the Chinese New Year.

The Chinese New Year, also known as the Lunar New Year or the Spring Festival, is the most important holiday on the Chinese calendar. In 2021, the Chinese New Year will begin on February 12, as the Chinese people celebrate The Year of the Ox.

China is by far the world’s largest manufacturer and exporter of goods, so naturally, this holiday will have a huge effect on the inventory pipeline and procurement for sellers of goods all over the world, including Third Party FBA Amazon Sellers. If you are sourcing any of your products from China (and you probably are), it is very important to be aware of how the Chinese New Year will affect your Amazon Business.

In celebration of the New Year, nearly all businesses in China shut down as all workers get 7 days off from work. However, while the celebration itself lasts 7-10 days, most workers are given time off work starting 1 or 2 weeks before the Chinese New Year. Furthermore, most workers take 2 weeks off, not 1, for the holiday, meaning that most businesses in China are shut down for a full month surrounding the Chinese New Year.

Because the Chinese factories shut down, Amazon Sellers sourcing their products from China will have to make adjustments in order to make sure they can meet their Amazon inventory needs during the Chinese New Year. If you are an FBA Amazon Seller who sells products sourced from China, the most important ways to prepare for the Chinese New Year are:

Get in touch with your Supplier

The first thing you should do is get in touch with any of your Amazon suppliers in China and figure out how the Chinese New Year will impact their ability to supply your Amazon Business with the inventory you need. Find out the date their factory workers finish work and return to work, the date their office closes and reopens, the last date you can confirm an order to get a shipment before the Chinese New Year, and the earliest date you can receive shipments after the Chinese New Year.

Anticipate changes and be prepared

Because the factories and businesses in China will be shutting down for the Chinese New Year, many things change around this time. Be prepared for increased demand (due to the time crunch), increased costs (due to increased demand), more expensive shipping, and shipping delays. Amazon product quality can also decline for products sourced from China right before the Chinese New Year, as workers are eager to finish their work and go home to their families, and the increase in order volume makes it harder to ensure quality for each product. This also happens right after the Chinese New Year, when the workers are returning from their break, have lots of orders to catch up on, and may take shortcuts. In the times surrounding a holiday, it is always good to anticipate potential product quality issues and inspect your product extra carefully.


Order your Amazon Inventory as early as possible

Because of the issues mentioned above, it is best to order your Amazon Inventory as soon as possible to avoid having to deal with those problems. This means you should get started as early as possible every Winter as the Chinese New Year approaches. Figure out which of your products are sourced from China, figure out the demand for those products and how much you will need before, during, and after the Chinese New Year, figure out how much stock you have for each item already and how much you will need to order, and make an order as early as possible to that you can be stocked up on Amazon Inventory before the Chinese New Year starts and have enough inventory to get you through the time leading up to, during, and after the Chinese New Year.

Maintain communication with your suppliers throughout the entire process

We have already discussed why it is important to contact any Chinese suppliers you use for your Amazon Inventory in the weeks and months leading up to the Chinese New Year. However, it is also very important to keep in touch with them as the holiday draws closer, and after the holiday, to ensure that the transition will be smooth, there are no unexpected issues popping up, and that the supplier can meet any needs you may have for the rest of the year after they fill your orders for the Chinese New Year period. Remember to be considerate of the fact that it may be hard to contact your suppliers during the holiday itself, as they are busy observing the holiday, but keeping a good line of communication before and after the holiday can make your life as an Amazon Seller much easier and help you build your relationships with your suppliers.


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