Top takeaway
Everyone has advice for how you should respond to the new normal level of uncertainty. You should be taking in webinars and informing yourself from a wide range of audiences. You can register for our series here. Chew On This also had a great webinar this week.
What we’re reading
- US March Trade Deficit a Record $140 billion - This means everyone that could pull inventory in early did. You may see ecomm competitors that are able to hold lower prices longer as a result.
- China Tariffs to Have Outsize Affect on Toys, Sports Equipment, Apparel - Some sectors with outsized production in China will be affected more by US tariffs. Brands importing these products (and others like games, textiles, glassware, and down feathers) will see more impacts than other product types.
- LTL Freight Prices to Change with Reclassification - Freight price is based on freight class, which is based on the weight and density of LTL (less-than-truckload) shipments. The calculation is changing - costs for less dense shipments will soar, in some cases 97%. Figuring out how to fit more goods on each pallet could have a big impact on your freight costs, particularly for light items. If your pallets or products are already dense, you may save money.
One thing to follow
Beware bad advice! We recently saw an ecommerce vendor suggest that brands import their products to a country like Canada, make "light substantial transformation" like labeling, and then declare the Country of Origin is Canada when importing to the US.
Unfortunately, there is no such thing as "light substantial transformation." To be clear, changing a label is not substantial transformation. The US FTC is a good starting point for understanding the requirements for Country of Origin markings.
If something sounds too good to be true, triple check it from the source that makes the rules.
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