If your brand is currently considering some big strategic changes off the back of the rocky road that is the US tariff fiasco, we have some useful guidance to help you navigate these choppy waters. Ready? Ok, let’s buckle up, because we're going to be diving into the nitty-gritty of these tricky tariffs and what they mean for your ecommerce brand; we’ll cover everything from pricing, to making a change in tack on your sales strategy to moving fulfilment operations.
The Tariff Tango: What's the Current Status?
First things first, let's clear up the basics and get up to date with a summary of the current state of US tariffs. As of March 2025, the US has imposed a range of tariffs on imports from various countries. These tariffs are essentially taxes on goods coming into the country, and they can vary widely depending on the product and its origin.
Key Examples of Tariffs:
- Steel and Aluminium: Imports from countries like Canada and Mexico face a 25% tariff.
- China: Products imported from China are subject to additional tariffs of up to 20% across a wide range of items.
So, if your brand imports your products from these countries, you’ll likely be facing some challenging cost impacts. And if you're just on the brink of launching in the US, it's crucial to understand how these tariffs could affect your pricing and profitability.
The Ripple Effect: How Tariffs Impact Ecommerce Brands
So, what are your options when it comes to a business response to the tariffs? Let's break it down:
- Price Adjustments: If your products are imported from countries with high tariffs, you'll need to factor these additional costs into your pricing. This can be a tough pill to swallow, especially if you're competing with brands that source their products domestically. It's a delicate balance between staying profitable and keeping your customers happy.
- Supply Chain Shifts: Some brands are rethinking their supply chains to mitigate the impact of tariffs. This might mean sourcing products from countries with lower tariffs or even moving production. It's a big strategic move but it could help you stay competitive in a tariff-heavy market.
- Switching Sales Focus: Do you have the luxury of flexibility? Could you consider reducing your focus on US sales and moving to the EU instead? Depending on where in the world you’re based this could be a smart move. Based in Canada? You might find our blog here useful.
The Role of Fulfilment Partners: Your Secret Weapon
Navigating in-country rules- we’re talking regulations, tax and tariffs and more- quite frankly is a headache that you could probably do without. But fear not: luckily there’s a service partner category that can help you with all that. That’s right, fulfilment -or third-party logistics (3PL)- providers play a crucial role in helping ecommerce brands manage their logistics and supply chain operations, including navigating global strategy when it comes to tax, tariffs and regulations. Here's how fulfilment brands like Fidelity Fulfilment can help:
- Expertise in Tariffs and Compliance: Fulfilment partners often have dedicated teams that specialise in tariffs, duties, and customs compliance. At Fidelity this includes experts who support you to classify products correctly, calculate duties, and ensure that all paperwork is in order. It’s this expertise that can prevent costly errors and delays at customs.
- Cost Savings: By leveraging established networks and relationships with freight shippers, fulfilment partners will be your route to access competitive rates. This could help offset some of the increased costs due to tariffs. Cost savings can also be earnt by working with a fulfilment partner that reduces errors with packing accuracy and is capable of fault-free B2B shipping into retailers.
- Efficient Order Processing: Fulfilment providers use advanced order management systems to streamline the order processing workflows. At Fidelity, our software platform, Unify, drives customer satisfaction with advanced configurability facilitating everything from bespoke packing rules to drilldown data by SKU and sales channel.
- Inventory Management: Proper inventory management is crucial for ecommerce businesses to ensure product availability and minimise stockouts or overstocking. Your fulfilment partner should offer sophisticated inventory management systems that provide real-time visibility into stock levels, helping you monitor and reorder products automatically.
- Flexible Warehousing Solutions: Fulfilment partners provide flexible warehousing solutions customised to your specific needs. Whether you need temporary storage during peak seasons or long-term storage, your provider can scale your warehouse space as needed.
- Shipping and Last-Mile Delivery: Shipping and last-mile delivery are critical aspects of ecommerce fulfilment that can make or break the customer experience. Your fulfilment partners should offer a holistic package that encompasses secure handling and efficient shipping solutions to ensure that your products reach customers promptly and safely.
Strategies to Stay Ahead
Feeling overwhelmed? We get it. We’d love to support you with an initial audit of your current global fulfilment strategy helping you stay one step ahead of the tariff train.
Looking Ahead: The Future of Ecommerce and Tariffs
What's next for ecommerce brands dealing with tariffs? The landscape is always changing, and it's important to stay informed. We’ll aim to keep you updated here as new developments unfold, but here are some other useful resources to keep an eye on:
U.S. Custom and Border Protection
BBC News
Yahoo Finance