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The Andrew Faris Podcast

The Bear Case For E-Commerce In 2025

Dec 20, 2024
The future of e-commerce faces seven significant challenges by 2025. Tariffs, offshoring, and US isolationism could disrupt supply chains. Rising manufacturing costs in countries like South Korea and China add pressure on businesses. Over-reliance on platforms like Meta for advertising is risky, while AI heightens competition. Despite these hurdles, there's hope for direct-to-consumer brands if they adopt strategic resilience. A success story showcases how a clever landing page can transform ad performance, illustrating the power of innovation in tough times.
31:52

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Quick takeaways

  • Potential tariffs on imports could severely impact U.S.-based e-commerce profit margins and threaten business growth.
  • Global population decline in manufacturing countries like China may lead to labor shortages, increasing costs and supply chain inefficiencies for e-commerce.

Deep dives

Tariffs and Economic Isolationism

Tariffs, offshoring, and U.S. isolationism pose significant risks to e-commerce, particularly with potential tariffs on imports from countries like Canada and Mexico. Such tariffs can drastically reduce profit margins for U.S.-based e-commerce businesses, threatening their growth potential. For companies reliant on manufacturing in China, the likelihood of increased costs may compel them to raise prices, which can limit accessibility for customers and hinder sales. It's crucial for businesses to stay informed about tariff policies and explore alternative supply chains to maintain competitiveness.

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