Recent tariff proposals have introduced new challenges for ecommerce sellers, especially those sourcing products from China. Understandably, many brands are revisiting their margins, cost structures, and go-to-market strategies as they assess the potential impact on profitability.
At Teikametrics, we understand the pressure. That’s why our message to you is: Stay calm. Get proactive. You’re not alone.
While no one can predict how long these new tariffs will be in place, we believe that smart, agile adjustments today can safeguard your bottom line tomorrow, no matter how things shake out.
Whether you’re selling on Amazon, Walmart, or TikTok, our technology and team are here to help you navigate this shift strategically—not just survive it, but potentially come out the other side even stronger.
Tactical Moves Sellers Can Make Right Now
If you’re concerned about profitability in light of the tariffs, here are concrete steps you can take today:
- Shift Budget Toward High-Margin Products
Reallocate spend to products that are best positioned to absorb cost increases and still deliver ROI. - Adjust ACOS Targets by SKU
Now more than ever, efficiency matters. Teikametrics can help you set precise ACOS goals by product to preserve and grow profit. - Explore Underutilized Ad Types
Amazon Marketing Cloud (AMC) and DSP unlock powerful insights and targeting capabilities—perfect for maximizing every dollar when margins tighten. - Diversify Your Marketplace Strategy
Relying on a single platform increases risk. If you’re only selling on Amazon, consider diversifying into other marketplaces like Walmart or TikTok. This can help buffer against channel-specific cost pressures. - Update Your COGS in Teikametrics
See real-time gross profit estimates at the SKU level, giving you the insight to shift your strategy where it matters most. - Re-evaluate Pricing and Product Positioning
If your COGS has increased due to tariffs, reassess how your products are priced and positioned in the market. Use data (like competitor pricing, demand elasticity, and product reviews) to determine whether customers will tolerate a price increase—or if repositioning (e.g. bundling, rebranding, or upselling) makes more sense. - Watch Inventory Like a Hawk
Tariffs can disrupt your supply chain, which may already be tight. Use forecasting tools to predict which products could go out of stock and avoid wasting ad dollars on SKUs with limited inventory. If you’re using Teikametrics, syncing inventory signals into your ad strategy can help avoid stockouts and overspending. - Pay Close Attention to Your Budget
Tariff-related uncertainty can trigger a knee-jerk reaction to drastically adjust ad spend, but it’s important to step back and evaluate your budget through a strategic lens. Your competitors are likely facing similar pressures, which could lead to changes in the market as a whole.
It might be good to:
- Regularly reassess budget allocation
- Monitor performance closely to identify where dollars are working hardest
- Stay adaptable—ready to scale back or double down depending on new data
The key is flexibility: ensuring your budget decisions match your overall business objectives, while giving yourself the agility to respond quickly as conditions evolve.
The Role of AI Has Never Been More Critical
In moments like this—when profitability is under pressure and manual optimization isn’t enough—AI becomes essential.
Teikametrics’ AI is built to make high-frequency, high-impact decisions across thousands of SKUs and campaigns, automatically adjusting bids and budgets to maintain profitability at scale.
No human team can react this quickly.
No spreadsheet can optimize at this level of precision.
This is exactly why sellers using AI-driven tools are better equipped to weather market shifts and protect their bottom line.
Take automated and predictive bidding as an example.
AI continuously evaluates key variables like conversion rates, seasonality, pricing changes, and inventory levels—all of which can fluctuate rapidly in response to tariffs.
It uses this real-time data to calculate and adjust bids at the most effective level, ensuring your ads stay competitive without sacrificing profitability.
Without this automation, sellers would have to monitor every product and keyword hour-by-hour, and attempt to manually adjust bids based on incomplete or outdated information–risking overspend on low-performing products or missing high-margin sales opportunities.
Working Together to Stay Profitable & Scale Your Business
Whether you’re managing campaigns yourself or working with our expert team, here’s how Teikametrics can support you through this:
- Real-time profit tracking by SKU
- Smart Campaigns that react dynamically to margin changes
- Agile catalog pivots and advertising adjustments
- Cross-channel expansion support
- DSP and AMC strategies to extract more value from both your current customer base and reaching new customers.
If you need help protecting your margins, reallocating ad spend, or expanding into new channels, our team is here to partner with you every step of the way through these shifting market conditions.
Talk with a Teikametrics expert to get a personalized strategy tailored to your business goals today.
