ShipBob’s Post

Nimble has options to help customers transition without any disruptions. “Our strategic alliance and financial investment with Nimble expands our footprint in the e-commerce space, helping to further scale our FedEx Fulfillment offering across North America,” said Scott Temple, president, FedEx Supply Chain. “Nimble’s cutting-edge AI robotics and autonomous fulfillment systems will help FedEx streamline operations and unlock new opportunities for our customers.” https://lnkd.in/ektf3_Eb

Tariffs! Are you prepared for them? Let Columbus Consulting International help ensure your strategy, systems, and processes are prepared in order to protect margins and profits. #Grocery #Consulting #Tariffs

U.S. Trade Policy Shifts: What Brands Need to Know 🇺🇸 🚚📦 With President-elect Donald Trump about to assume office, some major changes in U.S. trade policy are going to take place and affect e-commerce businesses in the following ways: 1. No More Duty-Free Imports from China: Section 321, which allows duty-free imports of goods under $800, will end for Chinese shipments. Brands like Shein and Temu will face higher costs. 2. New Per-Package Fees: There is a consideration of charging $2 per package for imported goods moving through U.S. Customs. This adds to the cost burden for small shipments, especially from China or through third-party logistics in Mexico/Canada. 3. Section 321 Strategy Goes Away: Brands will no longer be able to save on tariffs by routing shipments through Mexico or Canada. Alternative U.S. warehouses may be a faster, cheaper option. 4. Increased Tariffs:There could be an increase of approximately 10% additional tariff imposition to continue surcharging goods from China. 5. National Security Concerns: Bans of companies may ensue for Shein or Temu due to national security reasons, just like the situation is with TikTok. What can brands do?: Diversifying suppliers, shifting to US-based fulfillment, and getting out ahead of trade policy will prevent further disruptions. The trade landscape is rapidly changing; the time to plan ahead is now. . . . . . #ecommerce #tradepolicy #logistics #tariffs, #SupplyChain, #Transportation,#Freight, #SupplyChainManagement, #Shipping, #Warehousing, #3PL ,#LogisticsManagement #LastMileDelivery, #Ecommerce, #Retail, #DigitalCommerce, #Omnichannel, #EcommerceBusiness, #OnlineRetail, #SupplyChainTech, #EcommerceLogistics, #B2BCommerce,#B2C https://lnkd.in/d_CeMJg4

My latest for Retail Brew: President-elect Trump's proposed tariff plan could cut consumer spending power by up to $46–$78 billion, or $362–$624 per household, every year they’re in effect, according to a new study released this week by the National Retail Federation. The study analyzed six retail categories--apparel, toys, furniture, household appliances, footwear, and travel goods (like purses and luggage)--and found the tariffs, an effort to boost domestic manufacturing, would result in higher costs for consumers and significant net loss for the US economy. More here 👇🏻 #retail #tariffs #inflation

Potential blow to Shein and Temu in the US? The White House just announced plans to stop the abuse of the 'de minimis' rule, which allows packages valued less than $800 to be shipped from outside the nation directly to consumers without import tariffs. In recent years, a tidal wave of such packages has started coming in, shipped by Temu and Shein. For decades, the 'de minimis' rule had a $200 threshold, but the Obama administration increased it to $800. The rule was supposed to make it easier for merchants to sell cross-border to US consumers and help companies like eBay and Amazon. It also benefitted drop shippers, who had goods shipped directly from China. But that was before the explosion of cross-border e-commerce from China. Now, the rule isn't helping US businesses; it is hurting them because of the new competition from China. Chinese merchants don't need US retail, wholesale and marketplaces anymore to sell to US consumers. When Chinese companies benefited from the rule, it became a 'loophole'. 'Hold on, this is not what 'de minimis' was meant for', they must be thinking at the White House. Of course, there are also legit worries about product quality and safety, just like in Europe. The Biden administration is now proposing to 'exclude a wide array of goods from being able to claim the exemptions'. It remains to be seen what this means exactly. The old $200 threshold won't make much difference since the average Temu order value of shipments from China is still less than $50. Only a total abolishment of the threshold for these goods could hurt Temu and Shein. But Temu has anticipated this and has been working on various strategies to counter these potential measures. These include: - shifting share of sales away from the US to be less dependent on that market - sneakily transshipping through other countries like Mexico - implementing the 'semi-managed model' in which merchants import goods in bulk and ship from local warehouses - plans to divide potential cost increases because of tariffs between the consumer, merchant and platform Details on this and much more can be found in our Tech Buzz China Temu Watch series. https://lnkd.in/e-B8jSZd

“Shoppers that used to fear “missing out” now patiently wait for and expect promotions and deals.” “They have figured out how to flush out the lowest price for the highest value. Thus, the gift of inflation—price flexibility—is being replaced by the sting of eroding margins. In recent conversations with several leading retail executives, all said they expected this year to have to “eat” higher import prices.” “China’s share of total apparel imports fell from 34% in 2017 to 22% in 2022, according to research conducted for a group of trade associations. The study found that China’s share of tariff-specific apparel imports fell from 92% to 88%.” “Using tariffs as geopolitical influencers and industry protections sounds like a great idea. But a recent study out of the University of Wisconsin found that the US tariff codes are regressive and favor the luxury market over the mundane—a handbag made of reptile leather has a tariff rate of 5.3%, while a plastic-sided handbag has a tariff rate of 16%.” “There is a growing sense of urgency, driven in part by continued overall growth in exports from China to the US and inroads being made by Amazon-like competitors such as Temu and Shein, which can export small orders (less than $800 in value) to the US without any duty. That exemption covers about 70% of Chinese textile and apparel shipments, according to a recent Wall Street Journal report.” - Greg Petro

“Amazon is planning to fight back against rising competition from rivals Temu and Shein, mirroring their business models with a new direct-from-China discount section. In a recent meeting with top Chinese sellers, the US group outlined the new channel, which aims to airship goods to American shoppers from warehouses in China, according to a presentation seen by the Financial Times. Amazon plans to include the new section on the homepage of its app and deliver the ultra-low-cost goods in nine to 11 days, the presentation said. The offering would be aimed at US consumers willing to wait longer than Amazon’s typical one- or two-day delivery schedules in order to secure a bargain. The US group’s rush into offering cheap goods directly from China comes as it faces mounting competition from Temu and Shein, which have grown rapidly by blanketing the internet with adverts for their low-priced toys and dresses.” “Temu, owned by PDD Holdings, and China-founded Shein have perfected business models that rely on Chinese merchants shipping goods to warehouses in southern China which are then shipped via cargo planes to foreign countries. The individual packages bound for consumers benefit from the de minimis rule, which many countries have in place to allow citizens to receive parcels from abroad under a certain value without paying import tariffs. In the US, the threshold is set at $800 per parcel. Temu and Shein’s use of the loophole has allowed a flood of Chinese goods to make it to American shoppers’ doorsteps while skipping tariffs on Chinese imports that were increased during the Trump administration. Both companies have come under criticism from US politicians for the practice, and legislators in Washington have introduced bills to restrict use of the de minimis loophole.” “Amazon, whose market value on Wednesday crossed the $2tn mark for the first time, said: ‘We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience.’ Chinese sellers adopted into the new programme would ship their goods to an Amazon-run warehouse in China, with the US group shipping them onwards to its warehouses in the US, according to a person familiar with the matter. The direct-from-China section being trialled would include goods that sell for less than $20 an item, weigh less than a pound and are not edible or liquids. Amazon will start signing up sellers this summer and roll out the offering in the autumn, the presentation said. The US group’s move would represent a risk to Shein’s prospects as it plans to pitch an initial public offering to investors in London. News of Amazon’s new programme was first reported by The Information.”

New National Retail Federation research warns that the tariffs proposed by President-elect Donald Trump could decrease U.S. consumer spending power by up to $78 billion annually, impacting key sectors like apparel, toys, and household goods. As brands brace for potential price hikes and adjust spending priorities, retailers are increasingly relying on innovation and personalization to stay competitive amidst economic shifts. https://lnkd.in/guWJuMRK

Amid rising concerns over tariffs and their inflationary impact, off-price retailers like Burlington, Ross Stores, and TJX Companies showcase unique resilience. Their sourcing model—relying heavily on excess inventory from domestic suppliers—minimizes direct tariff exposure. This strategy not only shields them from significant cost increases but could also enhance their competitive edge. As mainstream retailers grapple with higher prices, off-pricers may see increased opportunities to source discounted merchandise, maintaining their value-driven appeal to consumers. It’s a testament to how agility in sourcing and pricing strategies can turn market disruptions into advantages. What are your thoughts on how trade policies impact retail strategies? #merchandising #retail https://lnkd.in/gJm76vHt

Cross-border trade via e-commerce expands China's cross-border trade in goods via e-commerce platforms rose to 111.04 billion yuan ($16.13 billion; 14.1 billion euros; ￡12.6 billion) in the first 10 months of 2018, as the country continues to raise annual transaction volume by individual buyers who make purchases for personal use, officials said on Dec 7. Through this fast-growing sector, the country's imports surged 86 percent year-on-year to reach 67.18 billion yuan between January and October, while exports jumped by 173.9 percent year-on-year to 43.86 billion yuan, according to data from the General Administration of Customs. "China will continue to adjust the product list and tax policies for cross-border e-commerce retail imports," said Li Chenggang, assistant commerce minister.   The first TEU container marks the opening of the Cross-border E-commerce Industrial Zone in Rizhao, Shandong province, on Nov 11. Song Niansheng / For China Daily He made the remarks after the country released a policy on Nov 28 enlarging the total number of tariff lines covered in the goods list to 1,321 products under 63 tariff categories. The products involved in those 63 tariff categories include textiles and clothing, footwear, jewelry, certain food products, small household appliances, stationery, fitness equipment, wine, beer, telescopes, video game consoles and ski boots. As for transaction volume caps, the limit per transaction has been lifted from 2,000 yuan to 5,000 yuan, while the annual cap has been lifted from 20,000 yuan to 26,000 yuan per person. These caps will be further lifted as individual incomes increase in the future, officials said. Li said that under the new rules, China will extend the policies currently implemented in the existing 15 pilot cities to another 22 comprehensive cross-border e-commerce pilot zones, including Beijing. The aim is to further improve regional distribution of e-commerce development and better satisfy consumer demand. "Unlike general trade, cross-border e-commerce retail imports mainly serve to provide diversified and quality products to domestic consumers. The products must be sold to consumers directly and confined to personal use," said Wang Wei, director of the Department of Port Administration at the GAC. On this basis, the government has said cross-border e-commerce retail imports should be regulated as entry of articles for personal use that are not subject to requirements such as first-time import licenses, registrations or filings for record. Feng Jinping, director of the tariff department at the Ministry of Finance, said the latest policy sets out specific requirements for the responsibilities that should be taken on by government agencies, as well as cross-border e-commerce companies, platforms and service providers within the sector and consumers. "Cross-border e-commerce companies take the main responsibility for the quality and safety of goods. Cross-border e-commerce platfor