The Ecomcrew Ecommerce Podcast E594: 5 Ways to Deal with Tariffs
6 snips
Apr 7, 2025 Navigating the pressures of rising tariffs, the discussion centers on five strategic approaches to minimize their impact. DDP shipping shifts risk from you to suppliers, while diversifying sales channels can help maintain profit margins. Negotiating discounts with suppliers offers an effective way to cushion the financial blow. Exploring manufacturing options in Canada and Mexico could significantly reduce tariff expenses. Above all, adapting to the evolving business landscape may reveal new opportunities for growth.
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Ship DDP
- Use DDP (Delivery Duty Paid) shipping for imports, especially from China.
- This puts the responsibility for tariffs and freight on your supplier.
Diversify Sales
- Diversify sales channels beyond the US, expanding into Canada, Europe, and other markets.
- This mitigates risk and can improve profit margins due to lower competition and PPC costs.
Negotiate with Suppliers
- Negotiate discounts with suppliers to offset tariff increases, aiming for 5-10% reductions.
- Use the excuse of tariffs and currency devaluation to justify the negotiation.