How Chinese New Year 2020 Affect Your Shopify Dropshipping Store - Action Taker

How Chinese New Year 2020 Will Affect Your Shopify Dropshipping Store

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If you are dropshipping then you are most likely sourcing your products from Aliexpress which is from China. It is important to take note that the Chinese New Year in 2020 is going to be between January 25-February 8, some suppliers like tot take their leave earlier and longer. This affects most Dropshipping stores due to factory shutdowns and delayed shipping times. Not to worry! Even if your business model relies on Chinese suppliers, you can still continue without losing momentum.

This post will cover everything you need to know to make sure that your business runs smoothly before, during, and after the Chinese New Year 2020, also known as the Spring Festival.

WHAT IS CHINESE NEW YEAR?

  • Chinese factories, warehouses, shops, and companies’ offices are closed: everybody is partying and having a good time, so there’s no one available to work on production lines, or to stock items, or even to handle customers’ queries.

  • The banks are also temporarily inactive, so it will take more time than usual to process the payments and any financial transactions.

  • Post offices, transportation hubs, and shipment services are also out of operation, so there can be delays due to this factors the delivery time for orders placed during this period will be much longer than usual.

HOW WILL THIS AFFECT YOUR BUSINESS?

  • During Chinese New Year, which will take place between January 25th 2020 to February 8th 2020, suppliers will take a week 1-4 weeks to spend time with their family and friends. Most manufacturers from China will shut down and this includes couriers as well.

  • Be aware that most of your orders won’t be accepted during these times but it still depends on your supplier so contact them!

  • Postal services and banks will take a holiday.

  • After February 8th, there will be a slow production startup so you will experience delays during and after their holiday.

How to Keep Drop Shipping During the Chinese New Year

  • If you plan correctly, you won’t have to stop your business and lose momentum at all.

  • Contact your suppliers NOW and find out their schedule

  • Prepare your website, especially your shipping time, so that customers are aware of the shipping delays.

  • Add a discount in your product page (5-15%). As there will be a small delay with shipping.

  • Edit your confirmation order and add a note mentioning that your orders might be delayed.

“Dear customer, we are delighted to get your order, and we will make our best to meet and exceed your expectations. Please note: the item you’ve ordered will arrive to you in 21-28 days since the day of the purchase. You are kindly welcome to contact us if necessary.”

  • I wouldn’t send the tracking number to your customers during these days, because they will see the big delays. However, you can send them these messages:

  1. ‘Yes, you will receive an email once your order ships that contains your tracking information, but sometimes due to free shipping tracking is not available.’

  2. ‘Please understand that the shipping time may vary due to factors beyond our control.’

  3. ‘Please note: some companies’ logistics need 5-10 days to update the shipping status.’

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  • Cut down on ad spend during this period of time unless….

IF YOU HAVE A WINNER:

  • A winner is defined: Already selling at least 10+ orders a day consistently.

  • Avoid extensive scaling UNLESS you purchased inventory in bulk.

  • Improve customer service and prepare some automated emails.

    WHAT I WILL BE DOING:

  1. Buy in bulk and ship to US.

  2. Scale harder as competition will be a lot lower.

  3. Hire another VA for customer service.

  4. Create automated email messages so it’s easier to respond. Also a post confirmation order email that there will be a delay in receiving their orders..

  5. Create a post purchase custom audience with a small discount and run low budget ad which states that orders may be delayed.

IF YOU ARE YET TO FIND A WINNER

  • Do extensive product research during this time

  • Prepare website, product description, & videos so that you can test extensively as soon as Chinese New Year ends.

  • Spend extra time studying dropshipping.

  • Work on yourself, habits and daily routines

  • HOLD ON… There’s still a way to test products…..

HOW TO TEST PRODUCTS DURING CHINESE NEW YEAR

  • Bulk order: Buy in bulk now through Alibaba and ship it to USA, this will also allow you to do faster shipping time and the ability to brand your product.

  • Dropship from the USA: Use the Aliexpress filter that only ships from USA then contact the supplier if they can continue selling through this method.

  • Test POD: Look for winning designs and import them into Printify and Printful then start dropshipping that way. If you have a niche store, it will be easier to find winning designs so that you can continue making sales.

Most important note:

  • Customer first: Listen to them and attend to their needs as it’s almost inevitable that you will have frustrated customers.

  • Preparation is key: Edit your shipping & delivery page as well as your product description. 

  • Edit your confirmation order and state that there will be a delay in shipment.

  • Scale down if you don’t have inventory in bulk

  • Take this time to improve your website, knowledge, and self development.