New US Tariffs and Dropshipping – How does it impact you?

It’s an interesting time to work in this industry, folks.
A lot’s changing and it’s changing quickly. One day we have TikTok, then it’s gone, then it’s back. I think I’m still suffering from mental whiplash after that one…
Now we have tariffs on foreign goods to worry about. This can be scary when you’re new to the world of eCommere. I completely understand what you’re feeling. That said, I want you to know that these changes aren’t so crazy that we need to panic. If anything, some of the big changes (tariffs) happening at the federal level may actually help us focus our efforts and refine the way we import products making navigating the world of dropshipping just a bit easier.

I’m not here to talk about the social impact of tariffs the economy. There are enough people arguing that already. I’m here to talk about what this means for you and your online business.

I’ve been getting a lot of emails from different warehouse/dropship companies that look something like this

*This is not the complete email – just a sample – Full email contains additional details and solutions for anyone
impacted who might be using AppScenic as their imported.

…Fun, right?

Anyway, I figured it’d be nice to talk about how/if you might be impacted and discuss what you can do if you need to change things up a bit. Let’s dive in.

First, let’s address those of you who probably won’t be bothered by this:
*This should apply to most of you who read this blog, listen to the pod, or attend my webinars.
1. If you’re dropshipping from a warehouse within the US and you’re using services, suppliers, etc that allow you to filter out certain countries; you’ll likely be just fine. There is a small chance that the warehouses you order from may encounter temporary shortages associated with products you offer if they wholesale from other countries, but the issues shouldn’t linger for too long (fingers crossed).
Keep doing what you’re doing, keep filtering out non-US “ships from” options and keep an eye on supplier pricing in case you need to update your product in the near future.
2. If you’re making the products that you control or distribute, personally, and your supplies are locally sourced; You’re business shouldn’t really be impacted.

Next, let’s talk about those who may feel an impact:
1. If you’re currently warehousing (buying in bulk/storing) and your products come from counties with whom the US is currently imposing tariffs; you’ll likely be impacted depending on how often you need to restock products or reorder supplies.
2. If you’re making products and the resources required to make and distribute those products come from other countries…see example 1.
3. If you’re dropshipping and you offer products that ship from warehouses, like those in China or other countries affected by tariffs; you may notice increased costs or shipping times associated with future orders.

So what do you do if you see prices creeping up or you’re working with a warehouse that isn’t based in the United States? We sidestep and keep moving forward.

For example, if you’re currently offering products that ship from China:
You’re likely doing so because they’re cheaper and you know your customers are willing to accept longer shipping times for the savings.
I’m sorry to say it, but those shipping times are going to get even longer and for products to gain entry into the US, it’ll probably cost more for importers, who will pass those increases on to you, and then from you to the customer. This is a global issue and you’re not going to be the only business dealing with increased shipping times and prices.
Now, you can maintain what you’re doing and just let customers know that shipping may take a bit longer while prices go up or….
Adjust your strategy and start restocking with US based options.
Restocking doesn’t need to be a big crash change to your site. Gradually start replacing products, a few a day, and start promoting those products on your social media/blogs for the time being. The updates, the activity and the new content will only benefit your website.

If you’re making or wholesaling products that require you to import from other countries:
The best advice I can offer it to make it worth the investment. Make sure you’re getting the best bulk deals you possibly can to continue stocking or making your products in a way that keeps your customers happy. You may need to increase prices on your products to avoid taking the full impact of the increased charges, but that’s where we are at the moment. You won’t be the only business doing that.

Photo by Andrea Piacquadio from Pexels

Most of you here are likely already using programs or services that allow you to filter down to US based shipping and you’re working with a domestic US based audience. Again, you shouldn’t have to worry too much about what’s happening. Keep doing what you’re doing and let your support teams know if you’re running into trouble. Of course, things can change. We recommend keeping an eye on the prices your supplier sets so you can adjust accordingly.

If you’re currently using AliExpress and/or DSers to build your catalog, check out my most recent video where I go over the import process while sticking to US based shipping options and suppliers. You can find that video when you click here.

*The info, opinions, and recommendations in this article are mine – Hi, I’m Bob – I make no guarantees that you won’t be impacted by what’s happening, no matter your situation, but I can assure you that your team is willing to help you explore solutions in the event that you need to make a change.

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