Tariff volatility and rising fuel prices are rapidly increasing shipping costs for ecommerce sellers, creating new urgency around protecting margins. With global trade conditions shifting and carrier rates fluctuating, businesses are being forced to reevaluate both their cost structures and revenue strategies.
Tariff volatility and rising fuel prices are rapidly increasing shipping costs for ecommerce sellers, creating new urgency around protecting margins. With global trade conditions shifting and carrier rates fluctuating, businesses are being forced to reevaluate both their cost structures and revenue strategies.
“The main issue that a lot of our customers are seeing is the increased cost of shipping and increased cost of tariffs,” says Gary Basko, Senior Account Executive at Descartes. “Making sure that they are optimizing every dollar that is spent and every dollar that is coming into the business is becoming ever more urgent.”
The challenge is not just higher expenses, but unpredictability. A product that costs one amount to source today may carry significantly different landed costs tomorrow once duties, freight, and fuel surcharges are factored in. Without accurate tracking, sellers may unknowingly erode margins or even sell certain SKUs at a loss.
According to Basko, visibility is the first step. Sellers need systems that calculate true landed costs, including inbound freight and tariffs, and allocate those expenses accurately across products. Misallocating container costs or dividing shipping fees evenly across SKUs can distort profitability data and lead to poor pricing decisions.
Beyond cost visibility, many sellers are turning to kitting and bundling strategies to improve per-order economics. By shipping multiple units together and aligning packaging with negotiated carrier rate “sweet spots,” businesses can reduce per-unit shipping expenses while maintaining competitive pricing.
For sellers struggling to understand where fees are coming from, Basko recommends seeking expert guidance and implementing purpose-built ecommerce software. Solutions like Descartes Sellercloud™ help calculate landed costs and automate kit and bundle workflows, while Descartes ShipRush™ provides multi-carrier rate shopping and negotiated shipping options.
As shipping costs continue to fluctuate, ecommerce leaders who invest in better cost visibility and smarter fulfillment strategies will be better positioned to protect margins and sustain growth.
To learn how to gain clearer insight into your landed costs and shipping expenses, book a demo with Descartes and explore how our ecommerce solutions can help.