As a SELLER, Are You Planning Any Proactive Steps to Deal with Possible Tariffs?

[my-cottage-books-and-antiques]

ON another thread, the OP there notes, his supplier is being proactive by increasing prices based on a not unreasonable determination that he will soon be effected by a tariff increase. I'd guess he's doing this both to cushion the tariff's possible impact, and to gauge how much of his American market he might lose if a tariff is enacted, so he can start to pivot to other markets if necessary. As the OP also notes, he himself was proactive in 2021, when he decided that prices were likely to go up, and so he stocked up on inventory, and still has a substantial stock, so if prices continue to rise, he has some insulation from their impact on his business.

So, my question is: Whether you are a "retailer" like the OP (you source from distributors, manufacturers, etc) or a "reseller" like me (you primarily source used goods from thrift stores, flea markets,etc), or you are somewhere in between (retail arbitrage, for example, or a mix of reselling and retail), what proactive actions would you suggest?

As a reseller, tariffs won't directly impact my sourcing, but they might impact the cost of some shipping supplies or other stuff I use daily (I will be need to replace my current PC pretty soon, for example). And of course, there are potential indirect impacts. So, I might want to purchase some things before the end of the year...

How about you? Any thoughts on how to be proactive---from a selling perspective?

[vintagecraze50]

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@vintagecraze50 wrote:

BUY EVERYTHING I want on TEMU before they cannot offer it ultra cheap. 

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Then ebay will have a better chance of selling more and getting their customers back and so will other websites. Holy Moly have they been smokin  grabbing people off all the other websites including EBAY, but maybe not for long. LOL!

[zamo-zuan]

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@sin-n-dex wrote:

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@my-cottage-books-and-antiques wrote:

A little long for some here I guess, but a fascinating look at the $800.00 de minimis rule, tariffs more generally and what we might consider the Law of Unintended Consequences...both as it relates to fentanyl and as to the rise of sites like Temu. Of course, there are also consequences if the rule is repealed, and likely some that will be unintended if that is done. 

https://www.marinelink.com/news/a-minor-change-us-trade-law-turbocharged-517645

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I don't pretend to know, but I don't think tariffs will stop overseas sellers from shipping stuff to the US (mainly because of that $800 exemption rule), most of those packets from overseas contain small items. The tariffs will affect companies importing commercial goods (and supplies for manufacturing) which will raise the price of domestic goods. It won't help eBay sellers at all since those that are trying to compete with us overseas are not going to be affected by the change.

As for the $800 rule... as a Canadian seller, the $800 rule allows me to ship my items to the US without repercussions, so if this is removed it would likely affect those transborder shippers I use like Stallion Express and Chit Chats and change how sellers like me in Canada can send our items to the US. So it does have consequences for some international sellers.

C.

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Even without the $800 rule, it doesn't hurt China. They aren't the ones to pay the tariffs, US companies pay the tariffs to US customs. Before the time it reaches customs, China is already paid.

And regarding China's own items, I promise you that the VP of one of the biggest Chinese manufacturers told me in person, they are not paying the tariffs. They import to their warehouse in Canada, packaged with no part number (only part numbers on the pallet). At which point they simply stamp on the label on the box, and claim it was "assembled" in Canada. Then import Canada > US. In the end, they pay less from China > Canada > US than they did China > US pre-2017.

Which allows them to increase their profit margin, as US competitors are selling for 30% higher than their net price.

At one point they even showed me their 2018-2019 forecasts in response to the tariffs, and it was "very favorable" because the tariffs increase demand. Their biggest concern was potential blackouts leading up to Chinese New Year. And they were right. More business with the US than before the tariffs. If the fact that imports from China only INCREASED post-tariffs doesn't speak on the ineffectiveness of tariffs, I don't know what will.

Which leaves the only suggestion to be able to compete with China alongside tariffs being, get some warehouses in Canada to assist with importing. But that's sadly not an option for most small businesses.

[my-cottage-books-and-antiques]

@vintagecraze50  The interesting thing---as noted in a link I posted above---is that ebay and etsy were two prime movers in raising the amount to $800 in the first place, because it benefited their sellers who were basically drop shipping from China. (They did not foresee the face that the Chinese might figure out they could ignore the middleman (ebay and etsy) and set up their own site.) So, a blanket reduction or elimination of the de minimis rule will probably hurt Temu in the US (I believe they are already expanding into other countries), but it would also probably hurt ebay's revenue as well. (Also keep in mind that China recently passed Germany as ebay's 2nd largest site, which is mostly exports to the US, especially in ebay's #1 category, P&A. And I think we can all guess who ebay will choose to make up any lost revenue due to Tariff changes---Hint: it won't be Jamie's salary)

[chariot_badges]

I have a question I'd like ya'll to consider.

If you had the ear of your King.   The King of your Nation, and she asked for your advice ... "Would you make a decision that would favor your nation?  or that would favor Ebay and therefore your personal business?   If you had to choose ... doing a good for your nation, your fellow citizens and neighbors ... or yourself and your business ... which would you do?"

If tariffs would help your nation in the long run, and harm your 'business' in the short run ... which would you rather see happen?

You do know that is what we are debating here ... dontcha?
Selfish, or selfless.

Pick a side.

[my-cottage-books-and-antiques]

@chariot_badges 

Actually, NO, that is NOT what THIS THREAD is supposed to be about. 

This isn't about: are tariffs good or bad?

That is a whole other discussion, being discussed on other threads, and I deliberately created this thread to hopefully avoid that discussion, as we really have no control over whether the tariffs come or don't. That is a fascinating topic, but isn't the topic of THIS thread. 

This is about: IF tariffs are increased as has been forecast, what steps, if any, would you want to take for your business. Could be steps to deal with what you view as a problem, or could be steps to deal with what you see as an opportunity. 

This is about dealing with tariffs as a practical business matter, same as a discussion about increased shipping costs, or about using AI to create marketing materials, or using social media, etc.

You can post whatever you like, of course, but I'd prefer that posters stick to the subject, and take the "tariff: good or bad" discussion to the other threads.

[my-cottage-books-and-antiques]

@chariot_badges  My suggestion: post your post here:

https://community.ebay.com/t5/Selling/And-so-it-begins/m-p/34781563#M2486340

As noted, I was really hoping to keep this post limited to discussion about DEALING with tariffs as a small business, not engage in a  discussion about how good or bad they are.

[allthingssurplus]

You are mistaken, one executive order can trigger the tariffs the same day.  Don't kid yourself, smart people are planning now.  40% of our business is in Asia.  I have informed our repeat customers that now is the time to buy and all stated they were looking over our 5200 listings and are buying heavy.  Its self preservation to act now.  

[dbfolks166mt]

     I am a reseller and plan on doing nothing at the moment. I find it amazing the panic that one person can cause through making a statement that he/she has no power or ability to follow through on of their own accord. While the Republicans may control the White House and have a majority in both the Senate and House they do not control either the Senate or the House. 

    I would think most of the older generation would already understand that things move slowly in the US Government when it comes to passing legislation. The transition of power has not even taken place yet and even when it does if there were to be legislation drafted up and introduced it may not actually get passed for months or even years. 

     The President and Congress have about 21 months to complete the federal budget prior to the start of the fiscal year in which the budget will be executed. Despite the extensive timeline the last time Congress completed appropriations before the start of the fiscal year was in 1996.

[my-cottage-books-and-antiques]

@allthingssurplus 

Thanks for the post, and clearly you have decided to act now, for your particular business. 

I use Windows, and later next year Windows will stop updating and protecting Windows 10. My current PC cannot operate Windows 11. I was going to wait until next year to buy a new PC, but I am wondering if it might be better to buy before the end of January...presumably there will be PCs on sale for the Holidays, so maybe some discounts along with whatever I might save be buying before any new tariffs hit. And if there are no new tariffs, well, either way, I'm going to be buying a new PC at some point.

[dbfolks166mt]

You are mistaken, one executive order can trigger the tariffs the same day.  Don't kid yourself, smart people are planning now.  40% of our business is in Asia.  I have informed our repeat customers that now is the time to buy and all stated they were looking over our 5200 listings and are buying heavy.  Its self preservation to act now.  

     Possibly but generally not. The president can impose tariffs under Section 232 of the Trade Expansion Act of 1962. The law states that the president can raise tariffs on imports that pose a threat to national security. Section 232 allows the President to implement these tariffs without the approval of Congress, following an investigation by the Department of Commerce.

[oldwestgold]

What on earth could anyone do, proactive or otherwise, even if they happen? Nothing. Tariffs are not a new thing.

[oldwestgold]

Everyone? Not me and many others.

[oldwestgold]

As a farmer, we were never on welfare. Get serious. Have you visited the Ags website to review what farmers in your area get in subsidies? Millions each. I live in the Midwest and there are no poor farmers here. They all drive their million-dollar combines and tractors.

[oldwestgold]

Actually, China toy companies have already started relocating their manufacturing to the US. We have one taking over a recently closed pop can factory in Whitehouse OH.

[oldwestgold]

Your first part was good, but you blew it when you became spelling police. We all know what the OP meant.