The Andrew Faris Podcast Even With Tariffs, I'm STILL Bullish On DTC
May 6, 2025
Explore the current e-commerce landscape amidst rising tariffs and shifting consumer confidence. Discover how top direct-to-consumer brands are optimizing their supply chains and utilizing AI to cut costs. Learn effective strategies for navigating economic challenges, including cost negotiation and expense reduction. The importance of adapting to changes in the market is emphasized as operators seek to unlock hidden margins and maintain growth. This is a practical guide for serious operators looking to thrive.
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E-commerce Growth is a Tailwind
- E-commerce as a percentage of US retail is still growing, exceeding 18% now.
- This growth, combined with overall retail growth, creates a strong long-term opportunity for DTC brands.
AI and Offshoring Boost Margins
- AI is reducing OPEX costs significantly for e-commerce brands, shifting margins favorably to operators.
- Offshoring combined with AI can dramatically lower operational expenses in US-based e-commerce businesses.
Incrementality Enhances Ad Efficiency
- Increased focus on incrementality measurement improves ad spend efficiency and opens testing of new channels.
- Costs for incrementality measurement tools are falling rapidly, benefiting e-commerce brand growth and efficiency.