Today we enter into a new world for e-commerce and retail. This is not a political post, but a reflection on what this means for brands and their supply chains.
As of April 2nd, the White House made sweeping changes to global trade through executive action - eliminating De Minimis (Section 321) exemption for imports from China and Hong Kong and implementing a universal 10% tariff on nearly all imported goods, with specific higher "reciprocal" tariffs on countries perceived to have trade imbalances and barriers.
These changes will have huge impacts on both legacy retail giants and disruptive e-commerce brands alike. Disruptions, price changes, delays, and more impacts will occur over the coming weeks.
However, these changes, while massive, were not unpredictable nor unprecedented. The seeds of these new regulations were planted back in 2016 during President Trump’s first presidential campaign and have been a clear priority for his second term.
But as we've seen, the status quo has rapidly changed in recent months and years - from COVID pandemic restrictions, to war, to changes in USPS parcel services, changes to IMMEX, collapsing fulfillment and parcel providers, and more - it is clear that change is the new constant.
At Stord, we prepared.
Since our founding, we have been laser focused on building a resilient and flexible fulfillment and commerce enablement platform that can endure the tumultuous environment of rapid-growth e-commerce business. We have the ability to rapidly launch nationwide fulfillment for brands in days when providers or tariffs change, reduce parcel costs when carriers levy new GRIs, and drive additional customer loyalty with cutting-edge pre and post-purchase tooling
This has meant conscious investment poured into our technologies and fulfillment network to level the playing field for brands of all sizes.
This means:
Strategically placed fulfillment centers across the United States and Canada with an integrated partner network for improved reach
A diversified mesh of national and local carriers for accelerated delivery times at the cheapest cost possible
Proactive import strategies to reduce fees and drayage costs
Close collaboration with government officials to stay informed and prepared on changes
These operational advantages have taken nearly a decade to build, and have prepared us to meet this moment of upheaval. Not only is Stord ready, but so are our customers.
Customers like True Classic and CANN. Both recently came to Stord under pressure from mounting costs. Both were implemented in record time - enjoying our integrated systems, network scale, and dedicated partnership. This work has shielded their end consumers from experiencing delays.
Here is what we did for True Classic, getting them live in 19 days.
We will continue to monitor and adapt as the realities of this executive order are felt throughout the broader market.
To our customers, thank you for your trust and confidence in Stord - know that we have your back and are ready to support. To those struggling and uncertain how to navigate these changes, please reach out, we would be happy to help.
Throughout it all, our priority is unchanged - to redefine the commerce journey, empowering merchants to deliver experiences that delight consumers at scale.
If you need help overcoming these new challenges, the Stord team is standing by.
Thank you,
Sean Henry