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The Canton Fair is China’s largest trade exhibition where e-commerce sellers can connect directly with over 24,000 manufacturers to source profitable products across electronics, consumer goods, and fashion during its three phases (April 15-May 5, 2025).

This event is crucial for online retailers seeking to secure competitive pricing, discover emerging trends, and build direct supplier relationships that eliminate middlemen and boost profit margins.

But this spring, a surprising trend is unfolding: reports and firsthand accounts suggest that American attendance at the Canton Fair is markedly lower than in previous years. The huge exhibition halls, usually buzzing with U.S. buyers determined to strike deals and scout the next viral product, are noticeably less crowded. 

Conversations with both attendees and suppliers point to a common thread—many U.S. e-commerce businesses are rethinking their reliance on China amid escalating tariffs, logistical challenges, and global uncertainty.

The question on everyone’s mind: Where should e-commerce sellers source their products now?

With tariffs on the rise and supply chains under pressure, Vietnam has emerged as a leading alternative to China. But is it truly the right move for your business?

The Shifting Landscape: Tariffs and Global Sourcing Realities

Tariff Turbulence and Its Impact

Over the past several years, the U.S.–China trade relationship has grown increasingly complicated, with multiple rounds of tariffs imposed on goods imported from China. These measures—meant to protect domestic industry—are directly impacting e-commerce sellers by raising landed costs, squeezing already slim margins, and introducing uncertainty into long-term planning.

For many, the once-simple equation of “source in China, sell in the U.S.” now comes with added risks and expenses.

China: The Traditional Sourcing Powerhouse

For decades, China has reigned as the world’s workshop. Its strengths are well-established: mature infrastructure, a deep pool of skilled labor, sprawling industrial clusters, and an unrivaled breadth of products. Whether you’re looking for electronics, toys, home goods, or clothing, you’ll find not just suppliers—but entire ecosystems supporting product development, packaging, shipping, and logistics.

Vietnam: The Rising Star in Global Manufacturing

In response to tariffs, supply chain shocks, and shifting consumer sentiment, many businesses are pursuing a “China plus one” strategy—maintaining Chinese production while testing or moving part of their manufacturing to nearby countries.

Vietnam stands at the forefront of this movement. Backed by growing foreign investment, improved logistics, and trade agreements with the U.S. and Europe, Vietnamese factories are rapidly scaling up, particularly in textiles, footwear, furniture, and select electronics.

Key Factors to Consider: Sourcing in Vietnam vs. China

1. Product Categories and Industry Strengths

China boasts mature supply chains in almost every conceivable category—electronics, home appliances, machinery, textiles, apparel, toys, and more. If your product is complex or requires specialized components, it’s likely that China not only produces it but also manufactures the subcomponents and packaging needed for assembly.

Vietnam, meanwhile, excels in sectors such as apparel, footwear, furniture, and some light electronics. The country is rapidly upgrading but still depends on imports (often from China) for certain raw materials and high-tech components.

Takeaway:
If your business focuses on simple consumer goods, apparel, or furniture, Vietnam may offer competitive options. For high-tech products or those requiring a complex supply chain, China remains the leader.

2. Costs: Manufacturing, Labor, and Tariffs

Labor Costs: Vietnamese wages are generally lower than Chinese ones, which can translate to cost savings—especially for labor-intensive goods.

Tariffs: Products imported from Vietnam to the U.S. currently face fewer tariffs than similar goods from China, providing an immediate advantage. However, the cost equation isn’t always straightforward: Vietnam’s infrastructure and supply chains are less developed, potentially increasing costs for logistics, quality control, and product development.

Shipping and Lead Times: China’s vast port system and global shipping links tend to offer faster, more reliable delivery. Vietnam is improving but may not be as efficient, especially during peak seasons.

3. Quality, Production Capacity, and Reliability

China’s factories have decades of experience ramping up production, maintaining quality, and handling large orders. Strict quality control processes are standard for established suppliers.

Vietnamese factories are improving but may not yet match China’s scale, especially for complicated or high-volume projects. Vigilance and extra oversight are needed in the early stages of a new supplier relationship.

4. Supply Chain Integration and Resilience

China provides a “one-stop shop” experience: from components to packaging to shipping, often located within a single industrial cluster. This resilience was highlighted during the pandemic, as China’s supply chain adapted with remarkable speed.

Vietnam sometimes relies on imported raw materials, particularly from—you guessed it—China. Sudden disruptions in China (lockdowns, shipping delays) can still ripple through Vietnamese factories.

5. Business Culture, Regulations, and Intellectual Property

Doing business in China has become more transparent in recent years, but challenges remain: language barriers, differing business norms, and intellectual property protection. Established trading platforms and agencies can help bridge gaps.

Vietnam is more open to foreign investment and business partnerships, but there may be fewer English-speaking suppliers, and the regulatory environment is still maturing. U.S. businesses should not underestimate the need for clear contracts, local legal support, and frequent in-person oversight early on.

Navigating the Transition: Action Plan for E-Commerce Sellers

Assess Your Product Line—What Makes Sense to Move?

• Product simplicity: The less complex your product, the easier it is to shift to Vietnam or another country.
• Volume and timing: Test Vietnamese suppliers with smaller, less time-sensitive orders before moving key SKUs.
• Risk readiness: Be prepared for trial and error. Building a reliable supply chain outside China is possible—but takes time.

Find and Vet New Suppliers

• Attend trade shows: Events like the Vietnam International Trade Fair and virtual sourcing summits can help you meet reputable, government-vetted suppliers.
• Use trusted platforms: Alibaba, Global Sources, VietFactory, and other directories now list many Vietnamese factories.
• Work with sourcing agents: Local experts can help bridge language and cultural gaps, arrange factory visits, and manage quality control.

Manage a Multi-Country Supply Chain

• Diversify, don’t abandon: The smartest play is often “China plus one.” Keep your best Chinese supplier while gradually shifting production elsewhere.
• Consolidate logistics: Use third-party logistics providers (3PLs) to combine shipments, streamline customs, and ensure on-time delivery.
• Build relationships: Developing a new supplier requires trust, clear communication, and sometimes, in-person visits. Budget for travel or use reputable inspection services.

Mitigate Risks

• Contracts and audits: Always have signed agreements and conduct regular audits (remote or in-person).
• Transparency: Require suppliers to disclose their own sources for materials, especially if you’re trying to minimize China exposure.
• Plan for bumps: Initial shipments from a new location can be delayed or have quality issues. Use smaller test runs to iron out problems.

Real-World Examples: Brands Making the Shift

Major global brands—Nike, IKEA, Samsung—have all shifted parts of their supply chains to Vietnam over the past decade. Their experiences show that while the transition isn’t seamless (delays, higher initial costs, new learning curves), long-term benefits include tariff reduction, diversified risk, and access to emerging manufacturing expertise.

Charting Your Best Path Forward

With U.S. attendance at the Canton Fair down and tariffs on Chinese goods up, the landscape for e-commerce sourcing is changing rapidly. 

Vietnam offers real advantages for certain product categories—especially apparel, footwear, and simple home goods—but China’s depth, scale, and speed are not easily replaced. 

The most successful sellers are those who adapt, test new suppliers, and diversify their sourcing strategies rather than betting everything on a single country.

Action Steps:

• Review your SKUs and prioritize products suitable for Vietnam.
• Start building relationships now—use agents, visit factories, or attend trade fairs.
• Diversify risk: Blend Chinese and Vietnamese sourcing for maximum flexibility.
• Stay alert to trade policies and keep your options open.

The new era of sourcing is about resilience, flexibility, and strategy. Those who adapt fastest will thrive, whatever the tariff climate.

How Canopy Management Can Help Navigate Sourcing Transitions

As the complexity of global sourcing increases, many Amazon and Walmart sellers are turning to experienced partners to help navigate these challenges. Canopy Management, America’s fastest growing brand management agency, offers specialized services that can help e-commerce businesses thrive during sourcing transitions.

With an average 99.1% year-over-year partner retention rate, Canopy Management combines human expertise with proprietary technology to optimize your marketplace presence. Their comprehensive approach includes:

Strategic Inventory Management: Canopy’s time-tested inventory projection systems can help you navigate the complexities of managing stock from multiple countries with different lead times and shipping considerations.

PPC Optimization: As you transition products from China to Vietnam, maintaining visibility is crucial. Canopy’s advertising experts use proprietary technology (C.A.T. – Canopy Advertising Technology) to ensure your products remain discoverable despite any potential disruptions.

Brand Support: Their Partner Success team can handle potential issues with your account health, including suppressed listings or inventory problems that might arise during sourcing transitions.

Full-Service Amazon and Walmart Management: From growth planning to listing optimization, Canopy’s white-glove service approach means you can focus on building new supplier relationships while they handle the day-to-day marketplace operations.

For e-commerce sellers navigating the shifting landscape between sourcing in China and Vietnam, partnering with an experienced agency like Canopy Management can provide the stability and expertise needed to make smooth transitions while continuing to grow profit margins.

Canopy Management is a full-service marketing agency for Amazon, Walmart, and TikTok sellers. Our team consists of multi-million dollar, omni-channel entrepreneurs, industry leaders, and award-winning experts.