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The most successful brands are built in “crisis”
IBM - economic downturn of 1911
Disney - Great depression 1929
FedEx - Oil Crisis of 1970
They didn’t survive they started and thrived…
Seeing what most could not….
For us eCommerce brands
Here are 7 simple steps to not only survive but thrive in a tariff war…
1. Sourcing
Don't rely on a single country or supplier. Have a main supplier and find a second as a back.
2. Nearshoring or Reshoring
Investigate bringing production closer to your customer base. Reduced transit times and potentially lower tariff impact are significant advantages.
3. Inventory Strategy
Reduce excessive stock floating. Order what you need every 4-6 weeks reducing your inventory management fees for holding stock you don’t need.
4. Pricing
Shopify allows you to adjust your pricing per country, increase your pricing as needed to countries heavily impacted by the tariffs.
5. Explore new markets (big one)
Getting customers in one country alone always has risk associated with it. Explore market like Europe and Asia to acquire customers cheaper and with less involvement in the tariff war.
6. Move Product Less
Most brands send their product from manufacturer > then to the country of sale in a 3PL > then to the Customer.
Explore sending your product to a china based 3PL completely removing the cost of shipping all units twice.
7. Focus on Value & Differentiation
Compete on more than just price. Emphasize unique selling propositions, exceptional customer service, and strong brand building.
Re-post this to share the value!