what's up sourcing warriors I hope you're having a great day I am so
excited to talk about today's subject and that is Chinese New Year to the 1.3
billion Chinese people this holiday is the most important the most elaborated
the most celebrated holiday lots of food lots of gifts lots of entertainment but
to you the Amazon FBA seller the small business owner dealing with the Chinese
New Year could be the pain in the butt if you don't know how to plan inventory
around the Chinese New Year hmm you might as well not to deal with the
Chinese suppliers because the impact is huge so today I'm gonna give you some
expert advice on how to plan inventory around the Chinese New Year let's get
started
if you're new to the channel my name is Yuping Wang I appreciate you checking
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learn the best sourcing knowledge let me begin by sharing a little background
about the Chinese New Year Chinese New Year never falls on the same day of our
calendar because it follows a lunar calendar by observing the moon phases
the Chinese New Year's Day always start at the beginning of the new moon so the
Chinese New Year's Eve is always a dark dark night the story goes that on this
dark night a fierce evil animal is going to come out and attack people so Chinese
people use a lot of fireworks to scare away this fierce animal and that is
called Nian crossing the Chinese New Year's Eve is called Guo-nian so if you
take the Chinese New Year's Eve as the baseline for business before the Chinese
New Year's Eve like seven to ten days and after the Chinese New Year's Eve and
that is 10 2 to 15 days and that is the entire break after the Chinese New
Year's Eve people traditionally don't even work until the 15th day based on
the lunar calendar and that is the full moon so for 2019 the Chinese New Year's
Day falls on the Tuesday of February 5 pause this video if you wanted to pull
out a calendar and start to follow what I'm saying I'm gonna do some quick math
so February 5 is the Chinese New Year's Day if you subtract 10 days you're gonna
find January 26 that's a Saturday realistic speaking a lot of Chinese
business are going to lose a lot of workers because these people from inland
city they need to they need to go home to clean house decorate the house
prepare food and start to celebrate the Chinese New Year
and a February 5 + 10 to 15 days you're gonna find February 18th
that is a Monday most business will return business so that is the two days
you need to remember January 26 being the last day and February 18th being the
first day returning to work what does that mean to you for you to plan the
inventory this means you have to have your shipment ready before January 26
not on january 26 because there nobody is going to take care of it it's before
January 26 I strongly suggest you give what we're two weeks buffer into this
planning meaning by January 10 to January 15 is the last days you have
your shipment produced inspected ready to be picked up to take a step further
what does that mean for you for you to place the purchase water if your
supplier early time is 30 days I strongly suggest you add at least 10
days 10 days to your lead time because the factories are going to be jammed by
many people's orders and they're rushing together orders or orders out so if you
want it your order to be ready by January tens to 15 and if you subtract
40 days from the finishing date that means you need to get your purchase
order in by December 1 that's the last day you need to give that order to your
supplier in order for them to finish by January 10 in order for this shipment to
be shipped out safe and sound before the Chinese New Year now you know when to
put the purchase order in before Chinese New Year in order to get the shipment
out before the Chinese New Year that is December 1 to get the shipment out
before January 26 don't relax yet because you may have made a mistake this
is the critical part please pay attention guys remember there are two
days January 26 is the last day everybody is going to go home and if I
18 is the first day everybody it's gonna come back factory start to start the
production assuming your supplier lead time is 30 days if you put the new
purchase order after the Chinese New Year on February 18 the first day they
return to work you'll order most likely won't be ready until March 30s because
most of the time after the Chinese New Year the factory continued to run on a
very jammed condition so they are running on East and 8ly time if your
shipment is ready finished by March 30th that means your shipment is not going to
arrive into Amazon warehouse until April 30 the first week of May so what does
that mean to you if you own an Amazon I fearlessness this means money because if
you know after the Chinese New Year your first shipment getting back to Amazon
warehouse is not going to arrive until the end of April 1st week of May that
means when you cut your purchase water on December 1 to your Chinese supplier
you need to commit more quantity in order to cover this long spell of Ali
time it's going to have a lot of cash tied into this purchase order you cut in
December but running out of stock after the ties Chinese New Year there's no way
to backfill there's no way to expedite it could be even more costly to redirect
your product I hope this is helpful guys if you run an Amazon affair business you
know how critical this is because there's so much cash tied in to the
inventory in the sourcing to explain in much greater detail on how to do the
inventory planning this is just a quick video to give you some good advice on
how to plan around the Chinese New Year if you appreciate the content leave a
comment subscribe the channel and I appreciate your support and I'll
see you soon have a brilliant day