How to Minimize Risk For Your Dropshipping Business During the Chinese New Year
Chinese New Year begins between the end of January and mid of February, the whole country shuts down for a month-long celebration.（Click here to get the timeline of Chinese New Year 2022)
The bad news is that dropshipping businesses are greatly affected by this holiday, especially if your business depends on dropshipping from China. You may be somewhat challenged because during this time, expect no deliveries, no orders, and no banks. Nearly everything will be shut down.
Major Impacts of Chinese New Year: Businesses Shut Down
– No new orders accepted from the 1st part of January
– Banks and postal services take a holiday
– Workers travel home and visit family
– Slow production startup after the festival
So it’s very important to get considerable preparation for Chinese New Year.
How to Prepare Your Dropshipping Business For the Chinese New Year
– Put a notice on your product pages delays may happen due to the holiday season
– Keep your customer informed about shipping times
– Add a coupon code on your product page for the inconvenience
– Be responsive
– Reduce ads
– Stock best-selling products in your store
But there is another problem: How to resist the risk of the stocking?
Two Things Afforded Or Deserving Prior Attention
– Cash Shortfall
– Dead Stock
So, what’s the meaning of these two things?
Firstly, everyone needs to define their own financial risk tolerance. All of us know that “Don’t put all your eggs into one basket.” But sometimes, stocking products means your working capital will be engaged during a period which will affect your other plan at this time. This is especially when you want to invest other projects; you will struggle with the cash shortfall.
Secondly, even though the products you stock are best-selling, unpredictable and doubtful factors will cause the products you can’t sell out to become dead stock. Most dropshippers (investors) will struggle with such problems. Of course, you can choose to get commercial insurance for your items, but now there is a simpler and more efficient way to deal with them:
To join USAdrop’s Chinese New Year Storage Plan!
What can USAdrop’s Chinese New Year Storage Plan Do to Help You?
– Drop 30% Ship100%
– Risk assurance
Firstly, you can make a deposit of 30% and get a 100% value in inventory.
For example, a dropshipper only needs to make a $30,000 deposit, and we will stock up $100,000 worth of products for them, which can be sold without any impact from the Chinese New Year.
Secondly, you will assume 30%, and we will guarantee the other 70%.
For a clear example of this: if there are still $10,000 worth of products that can’t sell out at the end of this period, this dropshipper just lost $3,000 rather than $10,000 because USAdrop will take the remaining 70% for him/her. And then USAdrop will return the $27,000 deposit to this dropshipper.
Well, above all are all the things I want to tell you about How to Minimize Your DropshippinG Business during the Chinese New Year. If you are interested in USAdrop’s Chinese New Year Storage Plan, Sign Up Now to contact your personal sales agent to participate in this rare event.
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