How To Prepare for Tariffs as An E-Commerce Business?
- Sourcing from overseas suppliers: If you import goods to sell domestically (like many dropshippers or private label brands), tariffs can raise your cost per unit.
- International fulfillment or shipping: If you fulfill orders across borders, you may encounter tariffs at customs depending on the destination country.
- Look up HS Codes: These Harmonized System codes classify your products for customs and tariff purposes. Knowing the correct HS code helps you determine the exact duty rate applied.
- Check country of origin: The same product sourced from different countries may face different tariff rates.
- Use customs databases or broker tools: Sites like the U.S. The International Trade Commission Tariff Database lets you search current tariffs by product category.
- Unit price
- Freight and insurance
- Tariffs and duties
- Customs broker fees
- Local taxes (e.g. VAT)
- Currency conversion and payment processing fees
- Work with a customs broker experienced in drawback claims.
- Maintain strong documentation (e.g. import/export dates, item SKUs, customer countries).
- Review drawback programs available in your country (e.g. U.S. CBP’s drawback program).
- Fulfill locally and avoid import charges on each order
- Improve delivery speed
- Lower return costs
- Can we share tariff costs? Some suppliers are open to splitting duties or offering volume-based discounts to ease the burden.
- Can you change shipping terms? For example, switching to Delivered Duty Paid (DDP) puts more responsibility on the supplier to manage customs and tariffs.
- Can you tweak the product or packaging? Small changes (like removing batteries or modifying materials) can sometimes move the product to a lower-duty classification.
- Set Google Alerts for “tariff changes” + your product categories.
- Subscribe to industry-specific sources like: Sourcing Journal, Bloomberg Trade, etc
- Monitor your national customs agency or trade office for official notices.
- Sign up for updates from your freight forwarder, customs broker, or logistics provider—many offer email newsletters or SMS alerts.
- Product cost
- Shipping and handling fees
- Tariffs and duties
- Currency conversion and transaction fees
- Ad spend and overhead costs
Harry Chu
Founder of TrueProfit & eCommerce Profitability Expert
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
