For many in the Western world, Chinese New Year (CNY) may seem like a minor event. However, in China and other countries celebrating it, the Chinese New Year shutdown is a massive occasion, comparable to an extended Christmas holiday. Everything grinds to a halt—factories close, employees travel home, and businesses pause for weeks.

If your e-commerce brand relies on Chinese manufacturers, this shutdown can’t be ignored. Even seasoned sellers need to stay ahead because, in 2025, Chinese New Year starts 12 days earlier than in 2024. This guide will help you plan around the upcoming shutdown, avoid supply chain headaches, and ensure you have enough inventory to keep your business running smoothly.

 

Key Dates for the 2025 Chinese New Year Shutdown

  • Chinese New Year’s Eve: January 28, 2025
  • Chinese New Year’s Day: January 29, 2025
  • The Lantern Festival: February 12, 2025

While the official public holiday runs from January 28 to February 3, factory shutdowns typically last about two weeks. The ripple effect? Production halts, shipment backlogs, and increased competition for post-holiday orders.

Pro Tip: Since CNY 2025 starts earlier, don’t delay your orders. Advance planning is crucial to avoid delays.

 

How the Chinese New Year Shutdown Affects E-commerce Businesses

 

1. Production Halts Completely

During the Chinese New Year shutdown, factories across China completely close. From managers to line workers, everyone heads home, meaning zero production for weeks. Even attempting to contact suppliers during this period is often futile.

Impact: If you don’t plan ahead, your orders may not get produced until mid-February, causing delays that can disrupt sales and lead to unhappy customers.

 

2. Reduced Product Quality Post-Shutdown

Once factories reopen, things don’t go back to normal immediately. Many workers won’t return after the holiday, forcing factories to hire quickly. New employees often lack proper training, which can result in lower product quality.

Tip: After the shutdown, keep a close eye on product quality by implementing rigorous inspections to ensure your customers receive what they expect.

 

3. Shipping Delays and Backlogs

Because everyone rushes to place orders before CNY, shipping volumes surge right before the holiday. Add to that the reduced workforce as employees leave early to prepare for the holiday, and you’ve got a perfect storm for delays.

Tip: Work closely with your suppliers to lock in shipping dates early and avoid last-minute rushes.

 

Timeline: What to Expect Before and After the Shutdown

Here’s a rough timeline to help you plan around the 2025 Chinese New Year shutdown:

  • Mid-January: Suppliers begin winding down production.
  • Late January: Factories operate at reduced capacity as employees leave.
  • January 28: Chinese New Year’s Eve – full shutdown begins.
  • Early February: Employees start returning, but operations remain slow.
  • Mid to Late February: Most factories resume normal operations by February 26.

 

How to Prepare for the Chinese New Year Shutdown

 

1. Plan Your Inventory Early

Review last year’s sales data to estimate how much inventory you’ll need during the shutdown. Factor in seasonal demand (Valentine’s Day, Mardi Gras, etc.) and ensure you place orders well in advance.

Actionable Tip: Build up extra inventory of your top-selling products to avoid stockouts and lost sales during the shutdown.

 

2. Communicate Proactively with Your Suppliers

Most suppliers have experienced the CNY shutdown before, so they can guide you on potential risks and timelines. Open communication helps you stay ahead of possible delays.

What to Ask:

  • When will production fully stop?
  • How long will it take for operations to resume post-shutdown?
  • Can some of your orders be prioritized before or immediately after CNY?

 

3. Consider Alternative Manufacturing Locations

While CNY affects China heavily, other countries like Vietnam and Malaysia may only have shorter holiday periods. Diversifying your supply chain by sourcing from multiple locations can help mitigate shutdown risks.

Pro Tip: If your current suppliers have operations in other countries, see if they can shift some production to those locations during CNY.

 

4. Implement a Quality Control Plan

Given the likelihood of new, less experienced workers post-CNY, product quality can dip. Be proactive by establishing a quality management plan and requesting detailed inspections before shipping.

Tip: Work with third-party inspection agencies to ensure product standards are maintained during this transition period.

 

Stay Ahead During the Chinese New Year Shutdown

The Chinese New Year shutdown doesn’t have to throw your business off course. By planning inventory early, maintaining open communication with suppliers, and diversifying production when possible, you can keep things running smoothly.

At ShipSage, we help e-commerce brands navigate seasonal challenges like CNY with reliable 3PL fulfillment center services. From smart inventory planning to fast shipping solutions, we ensure your customers get what they need—no matter the time of year.

Want to avoid stockouts during the Chinese New Year shutdown? Contact ShipSage today for expert fulfillment solutions designed to keep your business moving forward.