Share this
by RepSpark Team on April 22, 2025
Understandably, the uncertainty of our tariff situation is making it difficult for brands to plan for the year ahead.
We’re hoping to help with some of this anxiety with some actionable tips that your brand can start using during this pause on tariffs.
What we’ve done is reached out to small, medium and large brands to understand how different types of companies are navigating this uncertain tariff environment.
The good news?
Whether these tariffs are temporary or stick around longer than we'd like, there are strategic ways your brand can offset the impact of them to safeguard your margins.
1. Slim Down Your Product Line to Proven Winners
One of the easiest ways to protect margins in uncertain times is to simplify your product offering.
Sure, experimenting with new colors, patterns, or silhouettes can be exciting and great for storytelling, but it can also carry more financial risk. During periods of tariff uncertainty, put extra focus on your proven best-sellers.
By streamlining your offering, you'll minimize inventory risks, reduce unnecessary production costs, and safeguard your margins during unpredictable economic periods.
2. Trim Your E-Commerce Budget
Many brands are revisiting their digital marketing budgets to ensure each dollar spent is generating tangible returns.
Over the last few years, e-commerce advertising costs have risen significantly. Platforms like Google Ads and Facebook have become pricier, squeezing margins further.
Now is a good time to perform a line-by-line budget review.
Identify what's genuinely profitable and trim away tactics that aren't providing clear results. Instead of exploring new, uncertain marketing initiatives, double down on what already works and cut costs on strategies that aren’t moving the needle.
3. Reevaluate Free Return Policies
Free returns can be appealing for online shoppers, but they significantly impact your margins.
Many brands we've talked to are reconsidering their return policies.
Even a minor fee, like charging $5 for returns, can partially offset margin losses caused by tariffs without drastically reducing customer satisfaction.
Be strategic. Consider customer expectations within your niche.
Testing out a return fee for a limited period can show you whether or not it genuinely affects sales. You might be surprised how receptive customers can be to minor policy changes that help your business stay healthy.
4. Reconsider Buy-Now-Pay-Later Services
Services like Afterpay or Klarna seem convenient, but they can quietly consume 5-10% of your margins.
Take some time to assess whether these services are truly boosting sales or simply acting as a nice-to-have option for customers.
You might try temporarily disabling these services for a brief period to gauge customer reactions. If you find there's little-to-no impact on sales, cutting back here can help recapture valuable margin dollars during tariff-heavy periods.
5. Pause (Don’t Cancel) Non-Essential Projects and Store Rollouts
Launching, or expanding, your own branded retail stores or kicking off ambitious new marketing projects is exciting but requires significant upfront investment.
In uncertain tariff times, pausing these kinds of initiatives can make sense.
Many brands are temporarily halting or delaying new retail store openings and major marketing initiatives. Instead, they're redirecting energy and resources toward strengthening their existing wholesale channels.
Focusing on what's already profitable is a smart strategy that mitigates financial risk without completely sacrificing growth potential.
6. Look to Automation and Technology to Improve Margins
Automation can dramatically improve efficiency, freeing up your team to focus on value-added activities rather than repetitive tasks.
Now is the perfect time to identify opportunities for automation in your operations: such as automating inventory tracking, order processing, customer self-service, or administrative tasks.
At RepSpark, we've seen brands embrace automated technology to bolster sales, improve customer service, and ultimately reduce costs.
Technology-driven platforms provide measurable ROI, enabling brands to navigate tariff pressures more effectively by minimizing manual work and optimizing customer service operations.
Why Now is the Perfect Time to Prioritize Technology
Periods of uncertainty, like those brought on by tariffs, can feel daunting. But they're also a critical time to re-examine how you operate your business. Whether tariffs are a short-term disruption or become a lasting challenge, these strategies offer effective ways to safeguard your margins and position your brand for future growth.
Leveraging technology, particularly platforms like RepSpark, can streamline your operations, automate customer service tasks, and ultimately make your brand more agile and resilient in the face of uncertainty.
By implementing these six tips, your brand can confidently navigate tariff fluctuations, minimize risks, and emerge stronger on the other side.
Remember, uncertainty doesn't mean standing still, it means adapting strategically and proactively, turning challenges into opportunities for long-term success.
Check out some ways that RepSpark can help your brand during this time of tariff uncertainty.
