Shopify Entrepreneur Weekly

Hi there! Welcome to this week’s newsletter 😊

Here’s what we’ve got for you:

• Exciting update from a recommended app.

• We’re breaking down the tariffs and sharing tips on how you can offset any negative impacts.

• Shopify might be messing with your analytics.

• The latest Shopify news.

• A brand-new Shopify theme from Maestrooo.

• Adam Sandler's got this week's pick for you!

Recommended apps and deals

AirBoxr released Murphy AI ✨

Murphy AI is your internal consultant for data and e-commerce. It analyzes your Airboxr reports and provides actionable steps to boost revenue and profitability. With 120+ automated reports designed for DTC brands, Airboxr partners with the fastest-growing brands worldwide to simplify marketing, revenue, and operations insights. Powered by Murphy AI, finding game-changing insights has never been easier. Give it a try!

Take a look at their top automations — it’s the perfect starting point if you’re new to Airboxr.

⚙️ Hit us up if you need any help getting it set up.

Tariffs, tariffs, tariffs…

Tariffs are making headlines again, and if you’re a Shopify merchant, they could have a big impact on your business. Whether you’re based in the US, Canada, or another country, understanding how tariffs work and what they mean for your store is crucial. Let’s break it down and explore actionable tips to help you navigate these changes.

How tariffs impact Shopify merchants

1. For US-Based Shopify Merchants

• Higher costs for raw materials: If your products rely on raw materials from Canada, Mexico, or China, tariffs will increase your costs. For example, 60% of raw materials used in US manufacturing come from Canada and Mexico, and a 25% tariff could squeeze your profit margins.

• Supply chain disruptions: Suppliers may struggle to adjust, leading to delays or shortages. For instance, if your supplier relies on Canadian aluminum, they may need weeks or months to find alternatives.

• Price hikes for customers: To maintain profitability, you may need to raise prices, which could reduce sales volume.

• Competitiveness: Domestic-only suppliers may gain an edge over businesses relying on imported materials.

2. For Canadian Shopify Merchants

• Increased costs for US customers: A 25% tariff on Canadian goods sold to the US makes your products more expensive for American buyers. This could lead to a drop in sales, especially if customers see the tariff at checkout.

• Competitive disadvantage: US-based competitors will have a pricing advantage, as their products won’t face the same tariffs.

• Market diversification: Canadian merchants may need to explore new markets (e.g., Europe, Australia) to reduce reliance on the US.

3. For International Shopify Merchants

• Higher import costs: If you’re selling to the US, tariffs could make your products less competitive. For example, Chinese goods face a 20% tariff, which may force you to raise prices or absorb the cost.

• Retaliatory tariffs: Countries like China and Mexico have imposed retaliatory tariffs on US goods, which could affect your exports if you’re selling to those markets.

• Currency fluctuations: Tariffs can lead to currency volatility, further impacting your costs and pricing.

Tips for Shopify merchants to save and adapt

1. Stay informed and avoid panic

• Monitor policy changes: Tariffs are often temporary, so avoid making long-term decisions based on short-term changes. Stay updated on official announcements.

• Use resources: Websites like Terrafinder.ca and Dataweb.USITC.gov can help you understand how tariffs apply to your products.

2. Evaluate and adjust your supply chain

• Diversify suppliers: Look for alternative suppliers in non-affected countries or domestically. For example, if you rely on Canadian aluminum, explore US-based options.

• Understand your costs: Identify which components of your products are affected by tariffs. Only a portion of your product’s cost may be subject to tariffs, limiting the overall impact.

3. Adjust pricing strategically

• Gradual increases: Slowly raise prices rather than implementing sudden hikes to avoid shocking customers.

• Creative offers: Use bundling, subscriptions, or loyalty programs to offset price increases. For example, offer “buy 6 for $99” deals to encourage bulk purchases.

4. Explore tariff exemptions and reclassifications

• HS codes: Ensure your products are classified correctly. Some products may qualify for lower tariffs or exemptions based on their classification.

• Leverage free trade agreements: Research agreements like USMCA (United States-Mexico-Canada Agreement) to see if your products qualify for reduced tariffs.

5. Expand into new markets

• Diversify geographically: Reduce reliance on the US market by expanding into Europe, Australia, or South America.

• Localize pricing: Use Shopify’s Markets feature to set region-specific pricing and offers. For example, offer discounts to US customers to offset tariff costs.

6. Renegotiate with suppliers

• Shared burden: Ask suppliers to absorb part of the tariff cost to maintain long-term relationships. Many suppliers would rather share the burden than lose your business.

• Flexible contracts: Negotiate temporary adjustments to contracts to account for tariff-related cost increases.

7. Leverage Shopify’s tools

• Localized warehousing: Consider using a US-based warehouse or third-party logistics (3PL) provider to avoid tariffs for US customers.

• Currency and pricing flexibility: Use Shopify’s tools to display prices in local currencies and adjust pricing strategies for different regions.

Tariffs are a challenge, but they’re also an opportunity to rethink your business strategy. By staying informed, diversifying your supply chain, and leveraging Shopify’s powerful tools, you can navigate these changes and keep your business thriving. Remember, adaptability is the hallmark of a successful entrepreneur—so embrace the challenge and keep moving forward!

Shopify hack of the week

🚨 Shopify checkout clones might be messing with your analytics!

Did you know 10% or more of your checkouts could be clones? These duplicates happen when checkout links are copied or shared, or when bots repeatedly hit your checkout. The result? Inflated "Reached Checkout" numbers and tanked conversion rates.

Shopify doesn’t filter these out, so your analytics might be way off. To fix this, monitor for clones using the "landing_site" property in the Rest Order API or switch to a 3rd party analytics tool for cleaner, accurate data.

Check it out!

Ecommerce news and updates

Shopify has launched a new AI Store Setup to simplify online store creation for entrepreneurs. Designing a website is often a major hurdle that delays new business owners from making their first sales. With just a simple description of your business or products, AI Store Setup generates custom themes for your brand, helping you get your store online quickly. It’s now available to all merchants on the basic plan and up.

Shop app and Shop web are available in French, German, and Spanish.

Merchants in Mexico can now use Shopify Payments to accept payments and receive payouts.

During and after Managed Markets activation, it's now possible to decide which international markets are managed or not. This can be used among others, to progressively roll out Managed Markets.

New theme alert

Stretch by Maestrooo – $400 USD 💵

Stretch is the ultimate theme for immersive brand storytelling. With expansive layouts, 30+ customizable sections, subtle animations, and bold visuals, it lets you showcase your brand beautifully. Its dynamic grid offers complete flexibility to create unique layouts, while delivering a high-end look effortlessly — perfect for businesses seeking a stunning store design without the high cost.

Photo of the week

While stars like Timothée Chalamet, Adrien Brody, and Colman Domingo rocked their Academy Awards finest on Sunday night, Adam Sandler kept it casual in the best way possible. The actor showed up wearing a cozy turquoise hoodie from California-based brand Aviator Nation, priced at $175. Founded in 2006, and powered by Shopify, Aviator Nation is loved for its super-soft sweaters and sweatpants in vibrant colors. After Sandler was spotted on-screen, the hoodie sold out in all sizes on Aviator Nation's website before the ceremony even ended.

That's it for today!

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