Ofgem’s Post

Ecom friends: There IS up to 10pts in gross margin waiting for you to act on: 1. Bump prices by a couple bucks 2. Increase shipping cost to customer. 3. Use Section 321 to bypass duties and tariffs from China 4. Source alternate vendors and negotiate with current vendors

Blanket rates vs Direct tariffs vs CSPs VOLUME is the name of the game. Blanket rates = what 3PLs (like us) typically use We negotiate these based on our total volume across all customers and freight classes - a bit of a gamble for carriers, so the rates aren't that crazy. Direct tariffs = where shippers negotiate directly with carriers for better rates This works well if you're a high-volume shipper since carriers will feel more inclined to sharpen their pencils for you - if your volume is good but not massive, however, it could still be an inadequate option. That's where CSPs would be the sweet spot. 3PLs negotiate special pricing for you, leveraging overall volumes and carrier relationships to get you better rates than you'd get if you tried going direct. Whichever option you choose, we try to get our Rocket shippers the best pricing. Whether they need a blanket, direct, or custom CSP solution, our tech makes managing it all easier. #BlanketRates #DirectTariffs #CSP

In 2018, we saw U.S tariffs take a dramatic jump from 𝟯.𝟴% to 𝟭𝟮%.    It was really a push for Spreetail to increase transparency with the brands we work with.    For brands that rely heavily on imports, tariffs and their potential rise should always be top of mind.    When I imagine that rise, I see an environment where we continue to test, learn, and maintain that transparency.    Continuing to work with brands to drive out cost, increase market share gains, and push for growth. 

With the upcoming tariffs due to take effect in the next month or so, let us lock in some material and pricing to ease the pain. Reach out with any questions you might have or a list of items you’re interested in locking price on. Stay a step ahead of this one!

⏱ ⚡️ Have you heard of time of use (ToU) tariffs? Do you know how much they can save consumers in different markets? Are you struggling to overcome the challenges of scaling a ToU solution? If you answered any of the above questions with a "yes" or a "no" then you should read our latest report! 😉 Download it for free here: https://hubs.li/Q02NjYYl0

Friday thought: "Would Increased Tariffs Shift Your MAP Strategy?" Imagine tariffs suddenly increase, raising the cost of your imported goods. How would your brand adjust? Would you enforce your Minimum Advertised Price (MAP) policy more strictly to protect your brand value, or would you give retailers more flexibility to navigate rising costs?

The thing I get stuck on in this debate is the premise that flat tariffs can’t be cost reflective for end consumers. I think networks can and should have cost reflective pricing (although this doesn’t mean current tariffs are all well designed). Its the job of retailers to take complex and risky input costs and create attractive and competitive retail products, taking on risk and complexity in return for margin. Consumers that prefer flat tariffs should be able to choose them, but should pay a premium.

INDUSTRY ALERT: As of last week, 429 product specific exclusions from the Section 301 tariffs were extended through to May 2024. Read more on our website... https://lnkd.in/eTcdV9jF #CustomsBrokerage ##Tariffs #Section301 #Imports #SupplyChain

What is Price Escalation, and how does it affect your #pricingstrategy? 📈🏷 When selling internationally, various factors like tariffs, taxes, and shipping costs can push prices up, creating a price gap between local and foreign markets. Our blog post discusses how to manage these challenges and keep your #pricing competitive globally. 🌍💸 https://lnkd.in/gMXmFs28 #PriceEscalation #Ecommerce #Price #Pricing

Starting on or after September 27th, 2024. This new Section 301 update also introduces 3 new 301 HTS codes to identify the items that fall within these new tariffs. If you have further questions on this topic message us! https://lnkd.in/epNj4JaB