May 9, 2025 • 16 mins
In this episode, I share my experience with the China tariffs and their impact on eCommerce.
I discuss the impact of tariffs on pricing, what this means for eCommerce sales, and how to avoid the tariff war completely.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
What's up everybody? My name is Anton Craley.
My company is Dropship Lifestyle.
I've been building, growing and selling online stores since
2007. I've been helping others to do
the same since 2012. And in our community of Shopify
sellers, the hot topic right nowis definitely the tariff war and
how to avoid it. So I wanted to record an episode
(00:22):
for you where I cover a few different things.
First, what's actually happeningand the impact on pricing.
Then we are going to talk about what this actually means for
sales for your online store. And then of course, how to avoid
this as much as possible to makesure your profitability can
continue. Now you might have seen it, but
I actually posted a video back in November of 2024 when Trump
(00:45):
was just elected and that was called How Trump's presidency
will affect Shopify Sellers. A lot of what I predicted in
that video did come true, but there are also some changes,
some things I wasn't expecting and some things I want you to be
aware of before we move forward.First things first, Trump was
inaugurated for his second term in January of 2025 and that is
(01:07):
when he signed the first executive order regarding
tariffs. They went into effect on
February 1st, 2025 and then we had a 10% duty on all imports
from China. Now this is in addition to the
tariffs that already existed from his first term.
Then not much changed for a while besides a lot of talk.
In April of 2025, there were newSection 301 tariffs announced.
(01:31):
Then the big change was on April9th of 2025 and that is when
tariffs were raised to 145% on imports from China to the US.
That is the one that scared a lot of people.
But then just a couple weeks later on April 24th, 2025, there
started to be signals of easing,meaning lowering.
(01:52):
And then on May 9th, 2025, Donald Trump tweeted out or
truthed out, I'm not sure what he's using now, but he put out a
proposal to reduce tariffs on imports from China to the US to
80%. Now, 80% is still high, but I
think everyone will agree it is much better than 145% that we
are currently experiencing. So, yeah, as you just saw, the
(02:16):
past several months have been a roller coaster.
And who's to say if we extended that chart out another three
months or six months? It doesn't go from the current
proposed 80% down to 40% and then back down to 25%.
The truth is, again, nobody knows.
But what we do have now is at least context so that as I take
(02:36):
you through the three most important things I want to
share, we can all be on the samepage.
And again, that first thing I want to share is the impact on
pricing. So basically the way this works
is you have the factories in China that manufacturer the
products, and then you have the USA warehouses where products
are stored before they ship to customers.
(02:58):
So what we've been seeing is theUS warehouses, at least the ones
we work with, many of them have not had to restock items since
April 9th, which by the way, at the time I'm recording this, if
you're watching it in the future, was one month ago.
And again, April 9th is when that massive tariff went into
effect of the 145%, which means,you know, the prices are the
(03:19):
same because the US warehouses haven't paid any more yet.
But how this has affected pricing for the people that are
importing directly is huge because now everything they've
brought in for the past month that has to ship from China to
their warehouses in the US or their fulfillment centers, this
is when it gets hit before it gets to the US warehouse.
(03:40):
That is when you have to pay allthese extra tariffs and duties.
And that is where their prices, the importers prices go up in a
massive way or at least have forthe past month.
And that is why you're seeing a lot of items actually sell for
more money. You're seeing price increases
because the companies are now paying more for those same
products in the form of tariffs.Now one thing I want to throw
(04:03):
out there because I have spoken to so many different people,
people that do what we do, whichis drop shipping for companies
that have stock in US warehouses.
But I've also spoke with people who import their products
directly and sell them direct toconsumer.
And one thing that I have heard that might be good news for you
if you are direct importer, is that because the orders from
(04:24):
China to the US have dropped so much in the past month since
this tariff has went into effect, there are now many
different factories in China that are offering DDP, which
stands for delivery duty paid. And basically what that means is
the factory in China, that company assumes all
responsibility for shipping, forinsurance and for the duties.
(04:46):
So they're basically covering itas a way to keep their sales up
because again, many of these US warehouses, even the ones that
need inventory now that sell direct to consumer, have slowed
down on their ordering because they want to wait for tariffs to
go down. So because of that, again, a lot
of factories in China, this is for the people that import
directly, remember that are now offering DDP, which means they
(05:08):
will cover those fees. Not everybody, but they
definitely are out there. I'm hearing it more and more.
So if you are a direct importer,ask your factories if they offer
DDP, save yourself some money. And again, if they have seen
their order volume go down, you could probably get some
discounts. Have them that cost and get
products at what you've been paying.
Next, I want to talk about what this means for sales because a
(05:31):
lot of the questions I've been getting is how is this affecting
your business? And also is this still worth it?
Can you still be profitable withdrop shipping, specifically with
the drop ship lifestyle method with these tariffs?
So first what I'm going to do isshare exactly what I'm seeing in
my own businesses. And then I also will share what
I've learned by surveying the Drop ship lifestyle community
(05:53):
just to make sure that they wereseeing the same thing and I
wasn't, you know, alone on an island somewhere.
So for me, I have not seen any differences yet, no change in
pricing, nothing at all. But that is for a very specific
reason. Like I was talking about before,
the brands that we sell for, they have products in stock in
US warehouses, right? And remember that massive 145%
(06:17):
tariff only went into effect, I guess it was 30 days ago because
I'm recording this on May 9th and it went into effect on April
9th, so literally a month ago. And for me, my suppliers have
not had to reorder any stock in that past month, meaning the
products that I'm selling are already there in their
warehouses. And once they're there, there's
(06:37):
no extra tariff. It's not retroactive.
Now, the next time that they bring products in from China,
then yes, they will be subject to whatever the tariff rate is
at that time. But so far it hasn't happened.
Don't worry, I'm going to talk about what I'm going to do when
it does. But so far, it is just business
as usual. Now, when serving the Dropship
(06:58):
lifestyle community, everybody else besides one person said the
same is true for them. They have not seen any price
increases, any changes. It's business as usual, but one
Drop Ship Lifestyle member said that two of his suppliers raised
the wholesale cost for him by 25%.
Now 2 suppliers, it might sound like a lot, but just keep in
mind the average Drop Ship Lifestyle store has over 20
(07:20):
suppliers they sell for. So it is a small percentage, but
it still is a 25% increase in wholesale cost for those
products. So let's actually go now and
talk about, you know what this does mean for sales.
So I'm going to break it down really simple with a chart I put
together here and let's just go through actual product pricing.
Now the way we do business is wepay for products after we sell
(07:44):
them and when we pay for them, what we are paying is the
wholesale cost. Again, we're authorized
retailers to sell for multiple brands.
And after we make a sale, we then pay our COGS, our cost of
goods sold, the price to the supplier AKA brand for that
product. And let's just use a
hypothetical product for this example and we will call it
(08:05):
product number one. And let's say pre tariffs,
right, pre price hikes from a supplier.
This wholesale cost of this product was $500.
Well, the next thing we look at is MAP and MAP stands for
minimum advertised price. This is the lowest that we as
retailers can list this product for and not just us, but all of
(08:26):
our competitors as well. And MAP is a multiple of
wholesale on average 2X. What that means is if again pre
tariffs, pre price hike, the wholesale cost was 500, MAP,
what we sell to customers for would be $1000.
When a customer goes to our store, that's what they are
paying us. So what that means is our gross
(08:47):
profit, very simple calculation here.
MAP, what we sell it for minus wholesale would be $500.
That's what we would make per sale before obviously any other
expenses. But let's look now with this 25%
price increase what the actual pricing looks like.
So for wholesale, if it goes up 25% like it did for two
(09:08):
suppliers from that one drop ship lifestyle member, that
means for the same exact product, the wholesale cost is
now $625. OK, now you might be thinking
I'm going to make $125.00 less per sale.
I don't want to do that. That doesn't sound fun.
Well, remember MAP is a multipleof wholesale O.
If you take 625 two X that, whatdo we get?
(09:31):
Well, that product now has a MAPprice of $1250.
That's what that product will now be listed at on our store
and again, all of our competitorstores.
And what this actually means is the profit that we're going to
make when we sell it goes up. We now make $625 in profit
instead of the previous 500. Now you might be thinking, oh
(09:55):
wow, OK, I didn't think this wasgoing to be good for me, but
it's actually great because I'm making more money every time I
get a sale. And while yeah, it is great to
make more money every time we get a sale, the one thing to
keep in mind, right, how this isaffecting sales for the drop
Ship lifestyle member. And again, something that I
fully expect some of my suppliers to implement price
increase similar. But one thing that I mentioned
(10:17):
in that Trump video five months ago now that you know is
definitely true is that what everybody should realize is that
when these price increases and should say if these price
increases go into effect from any of your suppliers, I fully
expect there to be a period maybe from 2 to 4 weeks where
you are seeing sales for that product drop.
(10:38):
Now, why is that? It's because a lot of people
that are buying are buying within the first.
Usually for us, it's three to five days, but definitely within
the 1st 30 days that they find the product on our store.
And just imagine, you know, thiswas you put yourself in the
customer shoes. If you were on a website today
and you had a product in your cart for $1000, maybe a standing
desk and you were going to buy it, you know, in a few days,
(11:00):
right? And then you went back to that
website and now instead of $1000, you see that it's $12150.
And you're like, wait a minute, that's, you know, it's a lot
more than I was just going to spend on it.
Then you go on Google and you search for that product and you
see it's $12150 everywhere because of MAP.
Well, maybe you don't want that product anymore, right?
Because it kind of feels bad having to spend more money on
something that you were just about to buy for less money.
(11:23):
Now again, what I expect to happen, it hasn't happened to us
yet, but what I expect to happenis again for there to be maybe a
two to four week period where sales from suppliers where these
increases go into effect will drop.
But the reason I say only two tofour weeks and not forever is
because like I said, we're constantly getting new website
visitors. Actually about 80% plus of our
(11:44):
website visitors are first time visitors and they typically are
making a buying decision within two to five days, definitely
within 30 days. So basically the people that had
been kind of waiting to buy, maybe they're not going to buy,
definitely a percentage of them aren't.
But then they're going to be replaced with new audiences of
people that are now searching for the product.
And if you're worried or concerned that new website
(12:05):
visitors can't afford the products at a 25% price
increase, I just want you to remember this is America.
In America, people will book luxury vacations on high
interest credit cards. In America, people without jobs
spend $500 on Taylor Swift concert tickets and then pay an
extra $140.00 in fees. In America, people will pay
(12:27):
monthly for gyms for years without ever going through the
door. In America, people will lease
luxury cars for 0% down while they have no savings.
In America, people will finance their DoorDash and Uber Eats
orders. In America, people will find a
way to get what they want when they want it.
(12:49):
All right, sorry about that. Yeah, let's move on.
And let's talk about different ways to avoid the impacts of
tariffs. Again, I think they're really
going to last for the first two to four weeks of price
increases. Again, that's how tariffs could
potentially affect your businessby having your products cost
more money, AKA sell for more money to your customers.
(13:09):
So I have a list here of things that I'm doing that I want to
take you through as well. And the first is to diversify
and diversify. What I mean by that is for the
specific brands that you sell for or could potentially sell
for, check the country of originbecause you might not even know
where your suppliers products are coming from.
And typically suppliers will just have that information on
(13:32):
the product sheets they send you.
But if you don't know, you couldjust reach out to your suppliers
and ask them what the country oforigin is.
If it's China, then you know OK,that's going to have the biggest
tariffs. But if it's another country like
Vietnam or India or Thailand, then you know the tariff impact
is much, much less. So you don't even have to worry
about those at all. And again, for them, it's
(13:52):
business as usual. But one thing you can do and
that I'm planning on doing, if we see, for example, those 25%
increases for certain suppliers,what I'm going to do for those
first two to four weeks that theprices go up is make a note on
all of those product pages that had been affected on our store.
And I'm going to say if you're interested in something in X
(14:15):
price range, check out these products.
And then what I'm going to do isprovide links to similar
products on our store for the price that that product used to
be. In that example I gave you
earlier, let's say it was a standing desk that used to be
1000 and now it's $12150. What I'll do is post links to
two or three other standing desks that are similar in
(14:37):
quality in size, Basically something that you know the
customer would have the same experience with, but that's
still sell for $1000. That gives the customer an
option again, if they come back two weeks later, a month later
and they're like, hey, this thing was $1000.
Now it's not, I still want one of these, but I don't want to
spend this much. Well, now we're linking them to
options straight on our site forthat price or a price similar to
(15:02):
what they already were looking at.
And that can turn them into customers and of course, still
get you sales. Now another big thing to keep in
mind is controlling your ad spend.
And what I mean by that is afterthese price increases go into
effect, I am. And again, if they do, I keep
saying when. But since I haven't seen any
yet, I can't say for certain I'mgoing to see it.
(15:23):
But I am assuming so. So let's just say they do go
into effect from my first supplier.
When it comes to my ad spend forthose products, initially, I'm
not going to make any changes. I don't like to make any changes
when it comes to ads until I have at least two weeks of data.
So two weeks, let the ads run with the new price points, see
how conversions are affected. And if you notice that for those
(15:44):
products, the return on ad spenddid go down, what I'm going to
do is temporarily lower the budget.
I'll lower it for two to four weeks and then I'll put it back
up and see if we can maintain return on ad spend.
So guys, I hope you found this one helpful.
That is my update again, you know, five months after the
first video of what actually didcome true from that and what we
are doing to basically mitigate everything.
(16:07):
Just so you know, I kind of comeat this with like a very Stoic
philosophy. I just look at things for what
they are. I'm going to adjust what I have
to adjust. But as of right now, it is
business as usual. And if things do change, I'm
prepared to change because that's what I've been doing for
my my last 20 years in business.So as always, any questions, let
me know. I'm here to help.
And I will see you in the next video here from Dropship
(16:28):
Lifestyle. Thank you everybody.
What's up everybody? My name is Anton Craley.
My company is Dropship Lifestyle.
I've been building, growing and selling online stores since
2007. I've been helping others to do
the same since 2012. And in our community of Shopify
sellers, the hot topic right nowis definitely the tariff war and
how to avoid it. So I wanted to record an episode
(00:22):
for you where I cover a few different things.
First, what's actually happeningand the impact on pricing.
Then we are going to talk about what this actually means for
sales for your online store. And then of course, how to avoid
this as much as possible to makesure your profitability can
continue. Now you might have seen it, but
I actually posted a video back in November of 2024 when Trump
(00:45):
was just elected and that was called How Trump's presidency
will affect Shopify Sellers. A lot of what I predicted in
that video did come true, but there are also some changes,
some things I wasn't expecting and some things I want you to be
aware of before we move forward.First things first, Trump was
inaugurated for his second term in January of 2025 and that is
(01:07):
when he signed the first executive order regarding
tariffs. They went into effect on
February 1st, 2025 and then we had a 10% duty on all imports
from China. Now this is in addition to the
tariffs that already existed from his first term.
Then not much changed for a while besides a lot of talk.
In April of 2025, there were newSection 301 tariffs announced.
(01:31):
Then the big change was on April9th of 2025 and that is when
tariffs were raised to 145% on imports from China to the US.
That is the one that scared a lot of people.
But then just a couple weeks later on April 24th, 2025, there
started to be signals of easing,meaning lowering.
(01:52):
And then on May 9th, 2025, Donald Trump tweeted out or
truthed out, I'm not sure what he's using now, but he put out a
proposal to reduce tariffs on imports from China to the US to
80%. Now, 80% is still high, but I
think everyone will agree it is much better than 145% that we
are currently experiencing. So, yeah, as you just saw, the
(02:16):
past several months have been a roller coaster.
And who's to say if we extended that chart out another three
months or six months? It doesn't go from the current
proposed 80% down to 40% and then back down to 25%.
The truth is, again, nobody knows.
But what we do have now is at least context so that as I take
(02:36):
you through the three most important things I want to
share, we can all be on the samepage.
And again, that first thing I want to share is the impact on
pricing. So basically the way this works
is you have the factories in China that manufacturer the
products, and then you have the USA warehouses where products
are stored before they ship to customers.
(02:58):
So what we've been seeing is theUS warehouses, at least the ones
we work with, many of them have not had to restock items since
April 9th, which by the way, at the time I'm recording this, if
you're watching it in the future, was one month ago.
And again, April 9th is when that massive tariff went into
effect of the 145%, which means,you know, the prices are the
(03:19):
same because the US warehouses haven't paid any more yet.
But how this has affected pricing for the people that are
importing directly is huge because now everything they've
brought in for the past month that has to ship from China to
their warehouses in the US or their fulfillment centers, this
is when it gets hit before it gets to the US warehouse.
(03:40):
That is when you have to pay allthese extra tariffs and duties.
And that is where their prices, the importers prices go up in a
massive way or at least have forthe past month.
And that is why you're seeing a lot of items actually sell for
more money. You're seeing price increases
because the companies are now paying more for those same
products in the form of tariffs.Now one thing I want to throw
(04:03):
out there because I have spoken to so many different people,
people that do what we do, whichis drop shipping for companies
that have stock in US warehouses.
But I've also spoke with people who import their products
directly and sell them direct toconsumer.
And one thing that I have heard that might be good news for you
if you are direct importer, is that because the orders from
(04:24):
China to the US have dropped so much in the past month since
this tariff has went into effect, there are now many
different factories in China that are offering DDP, which
stands for delivery duty paid. And basically what that means is
the factory in China, that company assumes all
responsibility for shipping, forinsurance and for the duties.
(04:46):
So they're basically covering itas a way to keep their sales up
because again, many of these US warehouses, even the ones that
need inventory now that sell direct to consumer, have slowed
down on their ordering because they want to wait for tariffs to
go down. So because of that, again, a lot
of factories in China, this is for the people that import
directly, remember that are now offering DDP, which means they
(05:08):
will cover those fees. Not everybody, but they
definitely are out there. I'm hearing it more and more.
So if you are a direct importer,ask your factories if they offer
DDP, save yourself some money. And again, if they have seen
their order volume go down, you could probably get some
discounts. Have them that cost and get
products at what you've been paying.
Next, I want to talk about what this means for sales because a
(05:31):
lot of the questions I've been getting is how is this affecting
your business? And also is this still worth it?
Can you still be profitable withdrop shipping, specifically with
the drop ship lifestyle method with these tariffs?
So first what I'm going to do isshare exactly what I'm seeing in
my own businesses. And then I also will share what
I've learned by surveying the Drop ship lifestyle community
(05:53):
just to make sure that they wereseeing the same thing and I
wasn't, you know, alone on an island somewhere.
So for me, I have not seen any differences yet, no change in
pricing, nothing at all. But that is for a very specific
reason. Like I was talking about before,
the brands that we sell for, they have products in stock in
US warehouses, right? And remember that massive 145%
(06:17):
tariff only went into effect, I guess it was 30 days ago because
I'm recording this on May 9th and it went into effect on April
9th, so literally a month ago. And for me, my suppliers have
not had to reorder any stock in that past month, meaning the
products that I'm selling are already there in their
warehouses. And once they're there, there's
(06:37):
no extra tariff. It's not retroactive.
Now, the next time that they bring products in from China,
then yes, they will be subject to whatever the tariff rate is
at that time. But so far it hasn't happened.
Don't worry, I'm going to talk about what I'm going to do when
it does. But so far, it is just business
as usual. Now, when serving the Dropship
(06:58):
lifestyle community, everybody else besides one person said the
same is true for them. They have not seen any price
increases, any changes. It's business as usual, but one
Drop Ship Lifestyle member said that two of his suppliers raised
the wholesale cost for him by 25%.
Now 2 suppliers, it might sound like a lot, but just keep in
mind the average Drop Ship Lifestyle store has over 20
(07:20):
suppliers they sell for. So it is a small percentage, but
it still is a 25% increase in wholesale cost for those
products. So let's actually go now and
talk about, you know what this does mean for sales.
So I'm going to break it down really simple with a chart I put
together here and let's just go through actual product pricing.
Now the way we do business is wepay for products after we sell
(07:44):
them and when we pay for them, what we are paying is the
wholesale cost. Again, we're authorized
retailers to sell for multiple brands.
And after we make a sale, we then pay our COGS, our cost of
goods sold, the price to the supplier AKA brand for that
product. And let's just use a
hypothetical product for this example and we will call it
(08:05):
product number one. And let's say pre tariffs,
right, pre price hikes from a supplier.
This wholesale cost of this product was $500.
Well, the next thing we look at is MAP and MAP stands for
minimum advertised price. This is the lowest that we as
retailers can list this product for and not just us, but all of
(08:26):
our competitors as well. And MAP is a multiple of
wholesale on average 2X. What that means is if again pre
tariffs, pre price hike, the wholesale cost was 500, MAP,
what we sell to customers for would be $1000.
When a customer goes to our store, that's what they are
paying us. So what that means is our gross
(08:47):
profit, very simple calculation here.
MAP, what we sell it for minus wholesale would be $500.
That's what we would make per sale before obviously any other
expenses. But let's look now with this 25%
price increase what the actual pricing looks like.
So for wholesale, if it goes up 25% like it did for two
(09:08):
suppliers from that one drop ship lifestyle member, that
means for the same exact product, the wholesale cost is
now $625. OK, now you might be thinking
I'm going to make $125.00 less per sale.
I don't want to do that. That doesn't sound fun.
Well, remember MAP is a multipleof wholesale O.
If you take 625 two X that, whatdo we get?
(09:31):
Well, that product now has a MAPprice of $1250.
That's what that product will now be listed at on our store
and again, all of our competitorstores.
And what this actually means is the profit that we're going to
make when we sell it goes up. We now make $625 in profit
instead of the previous 500. Now you might be thinking, oh
(09:55):
wow, OK, I didn't think this wasgoing to be good for me, but
it's actually great because I'm making more money every time I
get a sale. And while yeah, it is great to
make more money every time we get a sale, the one thing to
keep in mind, right, how this isaffecting sales for the drop
Ship lifestyle member. And again, something that I
fully expect some of my suppliers to implement price
increase similar. But one thing that I mentioned
(10:17):
in that Trump video five months ago now that you know is
definitely true is that what everybody should realize is that
when these price increases and should say if these price
increases go into effect from any of your suppliers, I fully
expect there to be a period maybe from 2 to 4 weeks where
you are seeing sales for that product drop.
(10:38):
Now, why is that? It's because a lot of people
that are buying are buying within the first.
Usually for us, it's three to five days, but definitely within
the 1st 30 days that they find the product on our store.
And just imagine, you know, thiswas you put yourself in the
customer shoes. If you were on a website today
and you had a product in your cart for $1000, maybe a standing
desk and you were going to buy it, you know, in a few days,
(11:00):
right? And then you went back to that
website and now instead of $1000, you see that it's $12150.
And you're like, wait a minute, that's, you know, it's a lot
more than I was just going to spend on it.
Then you go on Google and you search for that product and you
see it's $12150 everywhere because of MAP.
Well, maybe you don't want that product anymore, right?
Because it kind of feels bad having to spend more money on
something that you were just about to buy for less money.
(11:23):
Now again, what I expect to happen, it hasn't happened to us
yet, but what I expect to happenis again for there to be maybe a
two to four week period where sales from suppliers where these
increases go into effect will drop.
But the reason I say only two tofour weeks and not forever is
because like I said, we're constantly getting new website
visitors. Actually about 80% plus of our
(11:44):
website visitors are first time visitors and they typically are
making a buying decision within two to five days, definitely
within 30 days. So basically the people that had
been kind of waiting to buy, maybe they're not going to buy,
definitely a percentage of them aren't.
But then they're going to be replaced with new audiences of
people that are now searching for the product.
And if you're worried or concerned that new website
(12:05):
visitors can't afford the products at a 25% price
increase, I just want you to remember this is America.
In America, people will book luxury vacations on high
interest credit cards. In America, people without jobs
spend $500 on Taylor Swift concert tickets and then pay an
extra $140.00 in fees. In America, people will pay
(12:27):
monthly for gyms for years without ever going through the
door. In America, people will lease
luxury cars for 0% down while they have no savings.
In America, people will finance their DoorDash and Uber Eats
orders. In America, people will find a
way to get what they want when they want it.
(12:49):
All right, sorry about that. Yeah, let's move on.
And let's talk about different ways to avoid the impacts of
tariffs. Again, I think they're really
going to last for the first two to four weeks of price
increases. Again, that's how tariffs could
potentially affect your businessby having your products cost
more money, AKA sell for more money to your customers.
(13:09):
So I have a list here of things that I'm doing that I want to
take you through as well. And the first is to diversify
and diversify. What I mean by that is for the
specific brands that you sell for or could potentially sell
for, check the country of originbecause you might not even know
where your suppliers products are coming from.
And typically suppliers will just have that information on
(13:32):
the product sheets they send you.
But if you don't know, you couldjust reach out to your suppliers
and ask them what the country oforigin is.
If it's China, then you know OK,that's going to have the biggest
tariffs. But if it's another country like
Vietnam or India or Thailand, then you know the tariff impact
is much, much less. So you don't even have to worry
about those at all. And again, for them, it's
(13:52):
business as usual. But one thing you can do and
that I'm planning on doing, if we see, for example, those 25%
increases for certain suppliers,what I'm going to do for those
first two to four weeks that theprices go up is make a note on
all of those product pages that had been affected on our store.
And I'm going to say if you're interested in something in X
(14:15):
price range, check out these products.
And then what I'm going to do isprovide links to similar
products on our store for the price that that product used to
be. In that example I gave you
earlier, let's say it was a standing desk that used to be
1000 and now it's $12150. What I'll do is post links to
two or three other standing desks that are similar in
(14:37):
quality in size, Basically something that you know the
customer would have the same experience with, but that's
still sell for $1000. That gives the customer an
option again, if they come back two weeks later, a month later
and they're like, hey, this thing was $1000.
Now it's not, I still want one of these, but I don't want to
spend this much. Well, now we're linking them to
options straight on our site forthat price or a price similar to
(15:02):
what they already were looking at.
And that can turn them into customers and of course, still
get you sales. Now another big thing to keep in
mind is controlling your ad spend.
And what I mean by that is afterthese price increases go into
effect, I am. And again, if they do, I keep
saying when. But since I haven't seen any
yet, I can't say for certain I'mgoing to see it.
(15:23):
But I am assuming so. So let's just say they do go
into effect from my first supplier.
When it comes to my ad spend forthose products, initially, I'm
not going to make any changes. I don't like to make any changes
when it comes to ads until I have at least two weeks of data.
So two weeks, let the ads run with the new price points, see
how conversions are affected. And if you notice that for those
(15:44):
products, the return on ad spenddid go down, what I'm going to
do is temporarily lower the budget.
I'll lower it for two to four weeks and then I'll put it back
up and see if we can maintain return on ad spend.
So guys, I hope you found this one helpful.
That is my update again, you know, five months after the
first video of what actually didcome true from that and what we
are doing to basically mitigate everything.
(16:07):
Just so you know, I kind of comeat this with like a very Stoic
philosophy. I just look at things for what
they are. I'm going to adjust what I have
to adjust. But as of right now, it is
business as usual. And if things do change, I'm
prepared to change because that's what I've been doing for
my my last 20 years in business.So as always, any questions, let
me know. I'm here to help.
And I will see you in the next video here from Dropship
(16:28):
Lifestyle. Thank you everybody.
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