How to Navigate E-commerce Tariffs in 2025

The new tariffs of the Trump Administration presents new challenges for online brands. As online shopping continues to grow, brands must adapt their strategies to stay competitive. One critical aspect of this adaptation involves managing costs effectively, particularly in relation to tariffs that can impact pricing and profitability. Brands need to be agile, often reassessing their product offerings and supply chains to optimize their inventory.

Let's explore 7 key points.

1. Strategically Manage Your Inventory

Navigating E-commerce tariffs can be challenging for ecom brands. Brands might need to streamline their inventory by reducing the number of stock-keeping units (SKUs) they offer until they find new suppliers. It can be a smart decision to eliminate products with excessively high landing costs, as these can eat into profits. Limited storage space can restrict the ability of certain brands to build up their inventory. Ultimately, finding a balance between maintaining a diverse product range and managing costs is crucial for success in the this new e-commerce landscape.

• Eliminate products with high landing costs

• Reduce the number of SKUs until your find new suppliers

• Automate inventory management and focus on what matters

• Assess your current product offerings and where they come from

2. Communicate with customers and suppliers

Customers

Communication with customers and suppliers is necessary to maintain strong relationships. Send emails to notify customers about any changes in pricing. You could even consider adding the costs of tariffs next to your prices. Sharing updates on production adjustments, such as relocation operations, helps keep everyone informed. Setting clear expectations for shipping, including potential duties and delays, is necessary to keep your customers satisfied. By being transparent, you improve your image with customers.

Suppliers

Engage in open discussions with suppliers to find solutions that benefit both parties. Some of your suppliers might have the capital to manufacture in other countries. It may also be worth exploring whether suppliers can temporarily absorb some cost increases. In light of new tariffs, renegotiating pricing and terms could be necessary. Keep suppliers updated on your needs and challenges.

3. Use different suppliers

First, brands should look for alternative suppliers in countries that are either not affected by tariffs or have lower tariff rates. This can help maintain competitive pricing and ensure product availability. Establishing long-term agreements with these suppliers can secure favorable pricing and protect against unexpected price hikes.

Brands should also consider reducing their dependence on manufacturers in countries with high tariffs by exploring other production locations. Engaging in discussions with current suppliers about the possibility of them manufacturing overseas can provide more flexibility. By diversifying supplier base, brands can better navigate the challenges posed by tariffs and improve their overall sourcing ability. It can not only mitigate risks but also open up new opportunities.

4. Protect your Cargo with Insurance

Increased border inspections, longer customs, and fluctuating tariffs raises the chance of shipment delays or damage. To safeguard your financial investment, cargo insurance is necessary, as it covers potential losses or damages. It's particularly important to insure all international shipments, especially for valuable items.

This insurance acts as a safety net that could result in financial losses. You can ensure that your goods are protected during transit. It gives you peace of mind in an unpredictable shipping environment.

5. Improve pricing strategies & diversify revenue

Adopt a data-driven approach that helps balance cost absorption with competitiveness. One effective tactic is to bundle high-margin products with items subject to tariffs, which can help mitigate the impact of rising import costs. Offering subscription models can secure long-term revenue, even as tariff conditions fluctuate.

Implementing cross-selling and up-selling techniques can also boost the AOV, making each order more profitable. A diversified revenue strategy can lead to greater stability and growth in this new changing landscape.

To summarise

• Bundle high-margin products with tariff-affected items

• Subscription models for steady revenue

• Cross-selling & up-selling to increase AOV

6. Explore new markets

To successfully expand into new markets, it is important to first identify promising international regions that show potential for growth. Major players like China, Europe and the United States dominate the global e-commerce landscape, but emerging markets also offer significant opportunities for expansion. By analyzing revenue trends and consumer behavior in these target areas, brands can focus their strategies more effectively.

Tailoring marketing campaigns to align with local preferences helps that it resonates with potential customers. Successful brands, like Coca-Cola, demonstrate the importance of localized marketing to connect with diverse audiences. Focusing on the interests of each region can lead to a more impactful approach. Ultimately, understanding local markets is key to driving sales and achieving long-term success in new markets with different cultures.

Step-by-step list

• Identify promising international markets

• Analyze revenue trends and consumer behavior

• Localized marketing campaigns to fit regional preferences

• Understand local cultures to drive more sales

7. Consider using 3PL providers

It's essential for businesses to be adaptable, when it comes to tariffs and market changes. Third-party logistics (3PL) services are particularly beneficial for e-commerce, as they help manage the unpredictable nature of it. Brands frequently encounter swift shifts in their audience, inventory, and market locations, which can be challenging to navigate. By outsourcing fulfillment and logistics, brands can better respond to these fluctuations.

3PL companies provide flexible solutions in transportation, logistics, and warehousing, catering to a diverse array of client needs. This flexibility allows e-commerce brands to strategically diversify and position their inventory. Brands can also broaden their market reach by leveraging existing warehouse and support infrastructures. With customers setting high expectations for fast delivery, businesses must be ready to meet these demands without having to own all logistics resources. By concentrating on core products and outsourcing logistics, brands can significantly improve their overall efficiency.

Ask For Help

At some stage, trying to handle everything can become a problem. If your team is having problems with tariffs & suppliers, having a hard time expanding into new markets, or just feeling overwhelmed with managing it, it could be the right time to ask for help.

At MarketingBack, we've helped e-commerce brands during this difficult period with these tariffs. We ensure that our team integrates with yours to drive results or help you solve it on a consulting basis. This unique philosophy is what sets us apart and helps us create lasting, multi-year partnerships.

The Final

Brands must remain vigilant and adaptable to thrive in a competitive market. This requires a keen focus on cost management, particularly in light of fluctuating tariffs that can significantly affect pricing strategies. Brands should prioritize effective inventory management, ensuring that they maintain a balance between product variety and profitability.

By keeping customers informed about pricing changes and potential delays, brands can enhance their reputation and customer loyalty. Collaborating with suppliers to find a mutually beneficial solution will lead to more efficient operations. Implementing these strategies will position brands for sustained growth and resilience in the face of uncertainty.