If you’re running an ecommerce brand in 2025, you’re probably feeling the squeeze. Costs are up, margins are tighter, and trade rules seem to change every time you refresh your feed. The global ecommerce market is projected to hit 6.88 trillion dollars this year, which brings growth, but also more complexity and pressure to keep up.

At ShipBob’s Ecommerce Unpacked Summit, Clearco CEO Andrew Curtis focused on one part of that stress that’s getting harder to ignore: tariffs. These fees are reshaping how brands think about sourcing, pricing, and customer behavior. His session explored the real impact tariffs are having right now and how businesses can respond with more flexibility, better planning, and access to the capital they need to protect their margins.

Why Tariffs Are a Big Deal for DTC Brands

Tariffs might seem like a background issue, but for many ecommerce brands, they’ve become a daily concern. These taxes on imported goods (especially from countries like China, Mexico, and Canada) can drive up spending quickly. Recent tariff hikes have only added to the pressure, with some goods from China now facing a total duty of up to 104% following new retaliatory measures.

For companies already working with a limited financial cushion, these extra costs leave little room to maneuver. Absorbing them can eat into profitability, but passing them on to customers risks slowing down sales. In some cases, shoppers are holding off on purchases altogether, waiting to see if prices drop later.

Tariffs now play a real role in shaping how you price, what your audience expects, and how confidently you can plan ahead.

Which Ecommerce Brands Are Most Affected by Tariffs

Tariffs do not affect every brand the same way. If you are selling lower-priced products with a low average order value, you are probably feeling more tension than most. These types of items are easier for customers to swap out, which makes it harder to raise prices without losing revenue.

The challenge gets even tougher for brands with high marketing costs and limited margins. As expenses rise, there is less adaptability to respond without cutting into earnings. The Interactive Advertising Bureau found that 60% of U.S. advertisers plan to lower their ad budgets by 6 to 10% due to tariff-related strain.

For products that are not clearly differentiated or lack pricing power, protecting profit levels becomes even more difficult. Retailers selling lower-cost, easy-to-replace items are often the first to feel the pressure.

How Ecommerce Brands Can Manage Tariff Costs

Tariffs might be out of your control, but your response is not. Ordering in bulk can lower per-unit costs, but it takes upfront capital. Clearco helps brands access that funding when supplier discounts are within reach. With Invoice Funding, Clearco can pay vendors directly on your behalf, often within 24 hours, giving you the flexibility to invest in inventory, marketing, or logistics without waiting on customer payments.

Research shows that smart SKU rationalization can cut holding costs by up to 30% while improving sales per square foot, helping companies focus on what is worth stocking in larger quantities.

Some brands are also negotiating better terms by paying suppliers early. Others are shifting production to countries with lower tariffs. Clearco works with supply chain partners to support these moves.

We also help to identify which products are worth protecting. High-value, repeat-purchase items tend to hold their price point better without hurting performance.

Beyond capital, Clearco supports brands with planning around product strategy, sourcing, and pricing so they can move forward with more confidence.

What Ecommerce Brands Can Learn From Andrew’s ShipBob Summit Session

Tariffs are one of many challenges ecommerce merchants are dealing with right now. They are also a clear reminder of how quickly things can shift and how important it is to stay ready.

One message from Andrew’s session was the importance of planning with resilience in mind. Businesses that take the time to build strong supplier relationships, understand their margins, and keep cash flow accessible are in a better position to respond when conditions change.

Clearco is committed to helping DTC brands stay resilient by offering capital along with the support and guidance needed to keep growing through uncertainty.