Worried about a Trade War?


Are you a private label seller
getting your goods manufactured and imported directly from China? If
so, you may have had quite a few restless nights recently with the news on
potential tariffs. There has been a lot of talk of a looming trade war in the
past few weeks with China and its possible implications. The war has not yet
begun and could still be averted but things remain far from clear. The
potential tariffs are far-ranging covering over 1300 exports from China, these
goods include everything from commodities like steel to medical equipment,
pharmaceuticals, and electronic components. This list of goods to face the new
tariffs is still fluid and could grow to include more consumer goods left out
of the initial draft. How this will affect the economy is a question without a
simple answer. Businesses will adapt as they always do. They will find new suppliers
for these goods and make changes to their supply chains, the question remains
at what cost?

This can be an uncomfortable
position for any business relying too heavily on goods manufactured and
imported from countries, we are currently at odds with China. So who’s not
losing sleep right now over a looming trade war? Domestic producers of similar
goods stand to benefit greatly and virtually any business with a diversified
portfolio of goods and suppliers.

So how does this affect my
business? Well if your selling liquidated goods you can actually

turn this uncertainty into a big
advantage for your business. You already know the basic advantages of
liquidation merchandise like price points, quality, and selection. For those
with a few years under their belts, they also know how selling liquidation
merchandise is also recession proof, after all, people still shop in an
economic downturn they are just a bit more selective when it comes to price
points. What you may not realize is that liquidation merchandise is also a safe
port in the midst of a trade war storm.

Retailers who specialize in
liquidated goods are not only insulated from the potential negative effects of
a trade war and tariffs but can actually benefit. Liquidated goods are essentially
immune from tariffs effects because these goods are in the late stages of their
lifecycle. The goods are already manufactured and in the country, tariffs would
simply not apply at this stage. Sales of these goods stand to benefit for the
exact same reasons. An item produced and imported after these tariffs take
effect could be significantly more expensive to produce and import.
Manufacturers with higher production or raw material costs will simply pass
them along to the consumer in the form of higher prices, making your goods all
the more attractive to the end consumer. It’s a win-win scenario your cost of
goods remains the same and you gain a competitive advantage. The most
successful entrepreneurs understand that any bad situation can be turned to their
advantage if the problem is carefully viewed from just the right

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