How Can E-commerce Owners Avoid Delays During Chinese New Year 2018

Chinese New Year, also known as the Spring Festival, is coming on February 16th,2018. Since it’s the most important traditional Festival in China and other Asian countries. Although the official holiday in mainland China lasts for only seven days, from February 15th to February 21st, 2018, many companies and enterprises including Chinese suppliers and domestic shipping agencies choose to start the vacation 3 to 5 days before the holiday, and come back to work after 8 days of the 1st month in the Chinese calendar (February 23th, 2018). Because Chinese New Year is a festival for Chinese families to reunion and stay together, so the Chinese New Year holiday may be the lowest period of people’s willingness to work. Many online sellers who own China-related e-commerce will be painfully aware of the long holiday comes disruption to all the businesses. The only solution is to prepare early. Here are some tips for e-commerce owners to avoid shipping delays and other problems during Chinese New Year.

Chinese New Year

Get to know the supplier and the shipping agency’s schedule early.

Most of the suppliers factories will be closed much earlier than the statutory holiday, sometimes as long as 15 days, because people want to go back to their hometown (may be thousands kilometers away from the factory) early. No matter your supplier is a factory or a trading company, it’s better to ask about their holiday schedule at least a month before Chinese New Year. More than that, people who often buy from Taobao know the fact that China domestic shipping always closed 3-5 days before Chinese New Year, so are the global shipping forwarding agencies in China. Your shipping deadline depends on the shipping agency’s schedule, or the products will be stuck in the warehouse until March, 2018.

 

Order the products at least 30 days early.

After knowing the schedule, it’s time to place orders. Due to different production time, it’s recommended e-commerce business owners to place orders a month earlier. For example, if it takes 10 days for the factory to produce a batch of products, then you need to place the orders 20-40 days before the shipping deadline. Some of the suppliers take a lot of orders before the holiday, but most orders will be processed after the Chinese New Year. Another situation is, some factories will never open after Chinese New Year, makes it harder for overseas e-commerce business owners to get products they ordered.

 

Use professional fulfillment service.

Other than early preparation, getting professional fulfillment service is also essential during Chinese New Year. In order to avoid delays and unnecessary losses, below are some suggestions for e-commerce business owners.

An affordable warehouse to keep inventory during holiday.

A third-party to do the quality control in the peak season.

A responsive sales manager.

As a customer-oriented order fulfillment company in China, ChinaDivision is dedicated to help global e-commerce business owners to avoid troubles brought by language barriers, culture differences, long distance, etc, which makes ChinaDivision an ideal cooperation partner during Chinese New Year or other holidays.

 

How the GOP Tax Plan Affects Online Retailers

On December 22nd, 2017, the President of the United States Donald Trump signed the GOP tax bill into law. As the President said, because of the massive tax cut, “Corporations are literally going wild”. According to analysis, the new tax plan will give a major push to the development of retailers by cutting the corporate tax rate, which is a great opportunity for small and medium e-commerce business owners to stay competitive in the international market. The GOP Tax Bill will bring the following benefits for online retailers.

Taxes

Better sales performance.

One purpose of the GOP tax plan is to stimulate consumer demand. Benefiting from the temporarily individual tax cut and the salary increase brought by the   permanent corporate tax break, Americans will have more cash in their pocket, which means people may step up their spending, and create more demand. This for sure is a good news for online retailers, because according to a study in 2016, 8 in 10 Americans are now shopping online. The increase of the money for consumption will bring more orders to the online retail industry.

 

Stronger margins to increase the service.

Starting in 2018, the corporate tax rate will be cut from 35% to 21%. This is the retail industry’s biggest public policy push for years, which the e-commerce business owners can really use. As I just mentioned, American can afford to buy more due to the deep tax cut, but it doesn’t mean all the e-commerce business can make more money. It is reported that consumers are spending more on experiences than things, that’s why Apple Stores are always full of customers despite anyone can purchase an iPhone online easily. So it’s wise to increase the service budget after the profit margin increases. Some might say online stores have natural short slabs on service compared to physical stores, it’s not really the way it is, there are a lot of things can be done. With the help of fast global shipping and brand upgrading services, online retailers can provide a more thoughtful door-to-door service for consumers.

 

Greater competitiveness at the international level.

The United States has had one of the highest rates in the world, put the country at a competitive disadvantage compared to lower-tax nations. Since the rates are much lower now, American companies are able to earn more domestic profits, e-commerce business owners in the USA can pay more attention to the American market. More than that, the permanent corporate tax cut brings the USA closer to that of countries like Canada (15%) or Ireland (12.5%), gives USA based e-commerce business greater international competitiveness. In this case, sourcing products from countries with developed manufacturing and cheap labor, such as China, and selling to America domestic consumers seems a good idea now. Thanks to the global economic integration and the quality international order fulfillment service provided by companies like ChinaDivision, American e-commerce business owners can seize the opportunity brought by the tax cut, and seek substantial business growth and expansion.