The ecommerce landscape is changing as new trade policies, tariffs, and regulatory changes are reshaping the global marketplace scene. Recent updates in U.S. trade policy include new tariffs on imports from China, with potential duties under discussion for goods from Mexico and Canada. At the same time, new tariffs are being introduced, targeting imports across multiple industries.
These changes present both challenges and opportunities for brands and retailers selling on online marketplaces. Successfully navigating these changes requires a proactive approach: Consider optimizing your supply chains, reassessing pricing strategies, and leveraging digital tools to maintain resilience in a volatile trade environment.
While these shifts introduce new uncertainties, change is nothing new in ecommerce. The most successful brands are those that remain agile, adjust their strategies, and embrace innovation to stay ahead.
Understanding the scope of what’s changing:
Industries and products most affected
Newly implemented tariffs in the US impose a 10% duty on all Chinese imports, affecting a wide range of products, including electronics, apparel, and household goods. These changes are expected to lead to price fluctuations across these categories.
➡️ Source: AP News
Potential tariffs on Mexico and Canada
There are ongoing discussions around tariffs on imports from Mexico and Canada, which could impact costs for food items like avocados, strawberries, and grains, as well as meat and dairy products. If implemented, these tariffs could significantly increase expenses for retailers and consumers, further straining supply chains and pricing structures.
➡️ Source: NBC News
The end of the “De Minimis” exception
Previously, the de minimis exemption allowed imports valued under $800 to enter the U.S. duty-free. The removal of this exemption would mean that all imports, regardless of value, are now subject to tariffs and customs procedures, potentially increasing costs and delivery times.
➡️ Source: Reuters
The ripple effect on supply chains
The elimination of the de minimis rule and the imposition of new tariffs are expected to disrupt supply chains, particularly for businesses that rely on low-value, high-volume shipments. Logistics providers and fulfillment centers will need to adapt to increased customs processing and potential delays.
➡️ Source: FreightWaves
Despite these challenges, online marketplaces like Shein and Temu are already adjusting their operations to mitigate the impact. They are establishing U.S. warehouses to store inventory domestically, reducing reliance on direct shipments from China and improving delivery speeds.
Additionally, they are diversifying their supplier networks, sourcing from alternative regions to minimize tariff exposure. Some brands have also scaled back marketing expenditures to manage rising operational costs while carefully adjusting pricing to remain competitive. These strategic shifts highlight how ecommerce companies are evolving to sustain growth despite the new trade landscape.
The new reality for ecommerce businesses
Managing costs and pricing strategy
With the removal of the de minimis exemption and the introduction of new tariffs, ecommerce businesses may experience higher costs across supply chains, fulfillment, and operations. Here are some of the key considerations:
Who absorbs the cost?
The impact of tariffs will likely be shared between brands, sellers, and consumers. Some brands may gradually adjust prices, while others may choose to absorb the costs to stay competitive. As a marketplace seller, striking the right balance is crucial to maintaining sales volume while protecting margins.
Do I need an entity in the U.S.?
For marketplace sellers relying on international suppliers, setting up a legal entity in the U.S. can provide advantages. This may include faster import processing, tax benefits, and improved marketplace compliance. However, this also comes with additional operational and regulatory responsibilities, making it important to carefully weigh the costs and benefits.
How might marketplaces respond?
Online marketplace players could adjust their policies, fees, or fulfillment and sourcing strategies in response.
Optimizing supply chains and logistics
As businesses adapt, many are reassessing their sourcing strategies to maintain efficiency and cost-effectiveness.
- Diversifying supplier networks: Brands and retailers may explore a broader range of sourcing options to maintain stability and mitigate risk.
- Nearshoring for efficiency: With higher tariffs on imports, some companies may consider bringing production and fulfillment closer to key markets to improve shipping times and reduce costs.
- Investing in supply chain visibility: AI-driven forecasting, automated inventory management, and real-time tracking tools are becoming essential for staying agile in a changing landscape.
How forward-thinking ecommerce sellers can stay ahead
Proactive pricing and inventory management
To navigate the shifting marketplace environment, businesses may need to refine pricing strategies, ensuring they remain both competitive and profitable. Adjusting prices too aggressively could impact demand, while absorbing costs entirely may reduce margins. A data-driven approach to pricing will be essential.
Beyond pricing, strategic inventory placement can help businesses mitigate potential tariff exposure and improve delivery efficiency. By diversifying fulfillment locations, companies can optimize logistics, reduce delays, and maintain a seamless shopping experience for customers.
Marketplace diversification: The need for a multi-channel approach
Relying on a single marketplace comes with risks, especially as platforms adjust policies in response to new regulations. By diversifying across marketplaces, brands can spread risk, increase resilience, and capitalize on emerging opportunities. For instance, while one marketplace may see increased fees or policy changes, another may provide new promotional incentives or access to high-growth customer segments.
Jordi Vermeer,
To simplify multi-channel selling, marketplace aggregator tools like ChannelEngine enable brands to seamlessly manage product listings, pricing, and inventory across multiple marketplaces. Additionally, robust reporting and analytics provide clear insights into product performance, helping brands optimize their profitability on marketplaces.
You can automate cost calculations—including marketplace fees, VAT, and shipping costs—to ensure your products are never being sold at a loss. Centralized control over pricing, promotions, and updates from a single dashboard further helps streamline your ecommerce operations, so that you can scale efficiently and maintain flexibility in an evolving market.
Investing in digital supply chain transformation
A tech-driven supply chain is now a competitive advantage. Brands that invest in real-time tracking and predictive analytics may be better positioned to anticipate disruptions, manage inventory efficiently, and optimize delivery routes.
In addition, advancements in blockchain, automation, and AI-driven logistics can further help you increase fulfillment speed and accuracy. These innovations enhance transparency, improve demand forecasting, and streamline ecommerce operations, ensuring a more resilient ecosystem.
Thriving in an evolving ecommerce landscape
The brands that thrive in ecommerce aren’t just reacting to change, they’re preparing for it by building flexibility into their operations. Whether it’s dynamically calculating and adjusting pricing to achieve profitability goals, optimizing supply chains, or expanding to new marketplaces, businesses that embrace innovation will be the ones that stay ahead. Multi-marketplace selling, powered by the right technology, ensures brands can scale efficiently, diversify revenue streams, and remain competitive in any economic climate.
At ChannelEngine, we help businesses stay ahead with multi-channel ecommerce solutions that drive growth and resilience. Diversifying marketplaces, automating logistics, and embracing smart fulfillment strategies are key to navigating global trade complexities.
