7 Ways Ecommerce Brands Can Prepare for Lunar New Year Shutdowns
Lunar New Year comes around every year—and so do the factory shutdowns that go along with it. For ecommerce brands dependent on manufacturing hubs in China and across Asia, this can mean weeks of production delays, disrupted supply chains, and unhappy customers.
The good news? With proactive planning, you can get ahead of disruptions, secure inventory, and ensure your business runs smoothly during this critical time.
This guide will show ecommerce businesses how to prepare for Lunar New Year factory closures, optimize supply chains, and keep customers happy—all while growing your business effectively.
Understand the Timing and Duration of Factory Closures
Lunar New Year typically falls between late January and mid-February, with celebrations often lasting 15 days. For workers in manufacturing hubs, holidays extend beyond the official dates. Factory shutdowns can last 2–4 weeks, with disruptions starting weeks earlier as workers travel long distances home and manufacturers race to complete pre-holiday orders.
This isn’t the only challenge. Contrary to popular belief, production doesn’t return to full capacity the day factories reopen. The post-holiday period often brings a slow ramp-up as workers return at different paces, creating additional lags in production.
For ecommerce brands, this extended disruption can impact everything from inventory levels to meeting customer demand—making early preparation non-negotiable.
Forecast Demand and Plan Inventory Early
To stay ahead, start planning your inventory months before Lunar New Year. Analyzing past sales data is key to forecasting demand trends early. Are you expecting a surge in January? Will specific products see higher sales post-holiday? Use sales patterns to plan your inventory needs for the weeks before, during, and after the holiday.
Industry experts recommend placing inventory orders by November at the latest to account for extended lead times. Partnering closely with suppliers is equally important—know their production schedules and ensure your orders are prioritized well ahead of the holiday rush.
Communicate with Your Suppliers and Manufacturers
The earlier you start conversations with suppliers, the better equipped you’ll be to avoid unpleasant surprises. Pre-holiday production slots fill up quickly, so lock in your schedules as early as possible. Confirm timelines for orders and shipping so you don’t find yourself at the back of the queue.
Post-holiday disruptions also deserve attention. Have realistic conversations with suppliers about when full production will likely resume and any potential delays during this period. Regular updates on production capacity will give you valuable insights for managing stock and customer expectations.
Diversify Your Supply Chain Partners
If Lunar New Year has consistently disrupted your operations, it's time to diversify your supply chain. Relying solely on one region leaves you vulnerable during factory shutdowns. Identify suppliers in alternative regions unaffected by the Lunar New Year, such as Latin America, North America, or Europe.
Local suppliers or nearshore manufacturers can also reduce lead times and shipping costs, offering you additional flexibility during periods of global disruption. By spreading your sourcing across different locations, you reduce the risk of operation bottlenecks—and strengthen your overall supply chain resilience.
Prioritize Shipping and Logistics Management
Shipping logistics are another critical piece of the puzzle. Ports and carriers experience peak congestion leading up to Lunar New Year as businesses scramble to move goods before the holiday shuts down operations. Planning ahead means securing space with freight forwarders and logistics partners early—ideally months before the holiday timeline kicks into gear.
Expedited shipping options are always worth considering for urgent shipments. The cost may be higher, but guaranteeing inventory availability can keep customers happy and your revenue strong throughout the disruptions.
Proactively Communicate with Your Customers
Managing customer expectations is an essential part of navigating Lunar New Year factory closures. Transparency is your best ally—be upfront about possible delays in your shipping times, especially on your product pages, during the checkout process, and via order confirmation emails.
Use email marketing and social media to notify your customers about extended delivery windows and to offer reassurance that you’re doing everything to keep operations flowing. Clear, proactive communication builds trust and reduces complaints, ensuring customers remain loyal to your brand.
Review and Optimize Your Inventory Management System
Investing in a robust inventory management system can make all the difference when navigating supply chain disruptions. Tracking your stock levels in real time will help you monitor availability during closures and adjust your operations accordingly.
Set up alerts for low-stock products so you can replenish inventory before it’s too late. By integrating strong inventory tools with your ecommerce platform, you’ll reduce the risk of overselling products you can’t fulfill during and after the Lunar New Year.
Take Control of Your Ecommerce Supply Chain Today
Lunar New Year shutdowns pose a real challenge, but with the right strategies, ecommerce brands can overcome them while staying ahead of the competition. From securing inventory early to diversifying suppliers and keeping lines of communication open with customers, preparation is key to avoiding disruption and maintaining customer trust.
If you’re ready to take your business to the next level this Lunar New Year season but need additional resources, consider funding to help meet your goals. With flexible ecommerce funding options, you can place your inventory orders ahead of the competition and secure smooth operations during peak periods.
Don’t wait until it’s too late—start preparing your ecommerce business today!
