In today’s changing business world, uncertainty is a given. The evolving tariff and trade landscape has far-reaching implications for ecommerce sellers, particularly in the USA. As an ecommerce business owner, it is true that many factors are beyond your control, and many of them can be quite impactful. However, by educating yourself on the changing landscape and devising a plan of action, you give yourself the best chance at stewarding your business through the uncertainty. 

In this article, we start by exploring the changing state of tariffs before discussing four ways tariffs can impact ecommerce sellers. Lastly, we cover several things you can do as a business owner to mitigate the impact of tariffs on your ecommerce business. 

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The Changing State of Tariffs

The introduction of tariffs on a number of trading partners in early 2025 by the US administration sent shock waves through the global economy. Initially implemented on a full cast of trading partners, the US administration then reduced some tariffs to a 10 percent baseline level on many partners while pursuing negotiations. 

Tariffs of 25 percent on Canada and Mexico were initially issued but were delayed at the last minute. However—and importantly for US-based ecommerce sellers—tariffs on Chinese goods ratcheted up to 145 percent in response to retaliation from Beijing on initial tariffs. Furthermore, these new tariffs included an end to the de minimis exemption that had been in place, meaning even smaller, lower-value packages would be subject to tariffs. 

While China and the USA did negotiate a temporary lower tariff level, the situation remains in flux at the time of writing this article. What is clear, however, is that the current US administration appears intent on implementing significant tariffs on a broad range of countries, particularly China. Furthermore, the rollout and implementation of new tariffs has played out chaotically, leaving business and world leaders uncertain about what future trade barriers might look like. 

These tariffs mark a significant change from “business as usual” and have the potential to dramatically reshape trade flows and the global economy moving forward, greatly impacting ecommerce sellers.

While the world reacts to the new direction, ecommerce sellers are working out just how the changes will impact their business. Below, we discuss four impacts sellers can expect, including:

• Increased inventory costs
• Increased business uncertainty
• Supply chain disruptions
• Changing consumer behavior 

Increased Inventory Costs

The most obvious impact of tariffs is also perhaps the most significant. As tariffs come into force, the cost of importing goods will rise substantially. This is particularly true in the case of goods sourced from China, as China appears to be the primary target of American sanctions. 

Unfortunately for the industry, most ecommerce sellers source their products from China, given the size of the country and the deep, cost-efficient manufacturing base. Almost overnight, the cost of inventory has risen for any seller relying on Chinese-based suppliers. 

If you happen to source your products from a country other than China, your future seems a bit more uncertain. A number of other manufacturing and supply-chain hubs are under threat of tariffs ranging from 10 to 46 percent, depending on the outcome of negotiations.

As a seller, the increased cost of acquiring inventory inevitably translates into higher retail prices. According to some estimates, by mid-spring 2025, many Amazon sellers had already increased their prices by an average of 29 percent for popular items. Keep in mind, this increase is being seen before the full weight and impact of the tariffs come into place. Greater increases may be in store. 

While raising prices can offset some of the increase in the cost of acquiring inventory, sellers are also wary of raising prices too much and driving away customers. As a result, profit margins are getting squeezed for many sellers.

Unfortunately, falling profit margins are often harder to sustain for small and medium-sized sellers. Even without tariffs, these companies are often unable to negotiate the same product rates as larger companies, leading to higher product costs. As tariffs come into play, these slimmer margins become slimmer still. Large sellers, with their advantage of scale and deep pockets, are better positioned to weather the storm. 

Increased Business Uncertainty

Understandably, much of the conversation around tariffs, both in the business world and by the general public, has been focused on the impact on prices. While this is the eventual, and most significant, impact, the uncertainty created by the changes and the chaotic nature of the rollout has created an incredible headache for ecommerce sellers.

As a business owner, dealing with uncertainty comes with the territory. There are many unexpected hurdles that come your way and many decisions to make with incomplete information. However, recent tariffs have created uncertainty on a global scale, the likes of which have not been seen for quite some time. 

If you are an ecommerce seller, there is much to consider: Will tariffs on other countries rise further? Will there be carve-outs for certain industries or products? When will they come into effect? Will future US administrations seek detente with China in regard to trade?

Unfortunately, it is impossible to know the answer to any of these questions. Time will tell. That leaves you, the business owner, in the challenging position of making significant business decisions with a terrible lack of information. 

Supply Chain Disruptions

Tariffs don’t always simply raise prices, with the increased sourcing costs passed to consumers. In some situations, tariffs are so high that transactions or business become unsustainable. Even if business could continue, some sellers choose to look for other suppliers in countries with lower tariff barriers in order to protect their bottom line. 

According to The Economist, the cost of shipping between Shanghai and Los Angeles has fallen by roughly $1,000, while the cost has risen by a similar amount between Vietnam and Los Angeles. This suggests that as tariffs bite, businesses are looking to non-Chinese suppliers, driving up demand. 

On a global scale, these changes could bring about tectonic shifts in the way trade flows. As an ecommerce seller, it could mean that your supply chain will require reconfiguring, just as a swarm of other ecommerce sellers find themselves in the same position. 

This could cause delays and disruptions for your merchandise, making it harder to ensure you can fulfill all orders and guarantee on-time delivery. 

Changing Consumer Behavior

As higher sourcing costs trickle down into higher retail prices, consumer behavior will be impacted. Higher prices generally dampen demand, especially for nonessential items. If inflation across the economy surges, even temporarily, as prices adjust, expect less demand. 

Some expect these increased prices to drive up demand for secondhand marketplaces like ThreadUp and Poshmark. App downloads for resale sites like eBay have increased somewhat in anticipation of price increases. 

Other customers, perhaps inspired by the mood that gave rise to the possibility of tariffs in the first place, may look for American-made products. Sellers that reshore their supply chain (i.e., choose a US-based manufacturer) may be able to capitalize on this preference by highlighting it in their branding. 

4 Steps to Mitigate the Impact of Tariffs

While uncertainty persists, you are certainly not powerless to navigate the changing landscape. Of course, the appropriate action, if any, for you depends on your specific circumstances. 

If you have non-Chinese suppliers, perhaps you need to wait to see whether tariffs are implemented on your suppliers’ home countries. Or, if you have a Chinese-based supplier but your margins are so high that you can absorb the price increase with only a small decrease in margins, perhaps no action is needed. 

However, many sellers will not be so lucky. Although some things will only be revealed in time, there are some actions you can take now:

• Adjust pricing strategies
• Diversify suppliers
• Prepare ahead of time
• Communicate with customers

Adjust pricing strategies

As your product costs increase, you must reevaluate your pricing strategies. Reassess your costs with tariffs baked in, assess the new market to determine optimal pricing, and project your margin accordingly. You will need to balance preserving your margin without driving away customers to the extent that it is possible.

In addition, consider implementing dynamic pricing, especially if you sell on Amazon. Other sellers are foregoing participation in sales events or special pricing promotions in order to protect margins, something you might want to consider as well. 

Diversify suppliers

If tariffs will impact your bottom line, it might be time to start looking for new suppliers. Currently, this would likely look like finding a non-Chinese supplier (Vietnam, Malaysia, Thailand, etc.). 

However, finding a new supplier and setting up a new supply chain is a big decision with many implications. Quality control, pricing, logistics, and more must be considered. Also, keep in mind that the tariff landscape is still developing. You wouldn’t want to change suppliers only for the effort to be wasted down the road in a different tariff environment. 

Or, perhaps you would benefit from considering bringing your manufacturing to the US. While this might increase costs, it would help ensure certainty and predictability in an uncertain trade environment, both now and in the future. 

Prepare ahead of time

While some tariffs have come into effect (again, particularly against China), others are on hold. You might want to consider using this time to stock up on inventory so that you have a buffer to work with as you prepare for possibly needing to shift your supply chain. 

Communicate with customers

Lastly, don’t overlook the value of communicating with your customers. Almost everyone is aware that tariffs will impact prices and the supply of goods. If you must increase your prices, communicating the reasons clearly with your customers can help create understanding. While this won’t remove the pain associated with higher costs, it might help you retain customers through the changes.