Building economic resilience for your e-commerce business
Building economic resilience for your e-commerce business
The U.S. has faced an economic roller coaster over the past few years 鈥 a global pandemic, inflation, the threat of recession, and ever-changing trade policies.
Some businesses have faced economic headwinds before: The 2008 financial crisis, for example, saw high unemployment, an international trade slowdown, and enormous pressure on small businesses. Companies that weathered that storm may be able to lean on some of those past experiences as they face uncertainties.
But for many companies, this might be their first rodeo 鈥 and the current challenges are certainly new for many e-commerce companies. Online shopping 鈥 and, truly, the global supply chain 鈥 were nothing in 2008 compared to today. Many e-commerce leaders feel like they鈥檙e operating without a playbook.
has put the foundations for one together, asking several e-commerce leaders how they鈥檙e navigating current challenges and compiling their responses and advice here as a resource.
The Experts
- Christian Casebeer, chief operating officer at
- Aurora Diaz, founder at
- Shad Doverspike, co-founder at
- Muhammad Joyo, co-founder of
- Claudio Storelli, founder and executive chairman at
Planning without predictability
Shifting market conditions have long been part of running any kind of retail business, and e-commerce is no different. Consumers are sensitive to everything, from shipping speed to emerging competitors to brand ethics. Brands have to adjust to what the market dictates.
Asset鈥檚 Christian Casebeer acknowledges that unpredictability is always part of running an e-commerce business. 鈥淎s a CPG brand, we don鈥檛 have the luxury of ever planning for stability,鈥 he says. 鈥淚t鈥檚 hard to predict consumer taste or future economic conditions.鈥
While rising inflation and unemployment may have influenced how people spend their money, the volatile U.S. trade policy was more unexpected.
鈥淲e anticipated tariff increases, but expected gradual implementation,鈥 says Claudio Storelli of Storelli Sports. 鈥淩eality moved faster than we anticipated.鈥 His company had planned a significant growth investment to triple sales within 36 months, but had to rethink its strategy.
Muhammad Joyo shares that Elaichi sources products from India and packaging from China. 鈥淓very morning we鈥檙e like, 鈥楢ll right, what鈥檚 changed?鈥欌 he says. The company tries not to rely on one supplier or even one social media platform.
To that end, the on-again, off-again TikTok ban has also threatened e-commerce businesses, so Elaichi focuses on both TikTok and Instagram. That helps them ensure that 鈥渋f one platform disappears, our business doesn鈥檛 come crashing down with it.鈥
Beyond product disruptions and changing consumer behavior, company leaders also have to think about the impact on their employees. 鈥淭here鈥檚 a whole team relying on you,鈥 Joyo says. 鈥淚f you can鈥檛 deliver for them because you鈥檙e too tired or you can鈥檛 get important things done because you鈥檙e constantly just 鈥榞oing鈥 there are big impacts.鈥
Founder takeaways
- Expect the unexpected: Market conditions can change on a dime, so it can be effective to have short- to medium-term plans 鈥 with long-term strategy remaining flexible.
- Diversify wherever you can, from suppliers to marketing platforms.
- Keep your team in mind 鈥 it鈥檚 important to show steady leadership especially through challenging times.
Navigating costs and pricing
Over the first half of 2025, tariffs have been a headwind for many e-commerce companies. With tariffs ranging from an additional 10% to a whopping 145%, products from overseas suppliers are caught in the crosshairs, with tariffs they鈥檙e subject to based on when they arrive in the U.S.
Since trade policy has been changing daily, in some cases, e-commerce leaders are grappling with how much to order and when to place orders.
For The Jefas, everything is more difficult now in terms of sourcing and acquiring product materials. 鈥淲e have to be strategic in terms of how much we鈥檙e purchasing,鈥 says Aurora Diaz. 鈥淥f course, it's cheaper to purchase in bulk, but sometimes you don鈥檛 have the money. In the moment, we have to think about that and sometimes put [purchasing] on the back burner and think about it later on.鈥
Storelli Sports opted to ship partial quantities to avoid immediate upfront tariff payments, even if it meant incurring higher airfreight expenses later. 鈥淎dditionally, we aggressively reduced operational costs, renegotiated payment terms with suppliers, and accelerated international market expansion to diversify our sales dependency beyond the U.S.,鈥 says Storelli.
Elaichi is at a growth stage and recently launched its e-commerce line. 鈥淩ight now, we鈥檙e not caring much about cost. We鈥檙e prioritizing quality and flexibility,鈥 says Joyo. 鈥淲e鈥檙e in a phase where sales are doubling every month, so we don鈥檛 really know how much we鈥檒l need. It鈥檚 hard to project that far into the future, so we鈥檙e optimizing for something a little bit different.鈥 For Elaichi, it doesn鈥檛 make sense to get the cheapest inventory since it can always dial in that margin as the company expands.
Strolee鈥檚 Shad Doverspike shares that his company has restructured its orders and product line, focusing on 鈥渉ero products.鈥 鈥淲e had to be really decisive on what we wanted to keep,鈥 he says. 鈥淎 lot of our supporting products and even new product development have been put on hold.鈥 Without knowing how long tariff uncertainty will last, Doverspike acknowledges that some products don鈥檛 have enough price elasticity to absorb the tariff or raise the price.
Other companies, like Storelli Sports, have to raise prices to offset tariff costs. 鈥淚t sucks to think that customers will have to pay the brunt of tariffs, but it鈥檚 also impossible for brands to absorb such extra costs and be sustainable,鈥 says Storelli. The company is partially passing increased tariff costs to customers, though it also intends to absorb a substantial portion to prevent severely dampening demand.
Casebeer believes that merchants and consumers will figure out how to adapt. 鈥淚f external economic factors put us in a tight spot, we鈥檒l figure it out,鈥 he says. 鈥淎t the end of the day, we listen to our customers, and we鈥檙e proactive about meeting their needs.鈥
鈥嬧婩ounder takeaways
- Be honest with yourself about the phase your company is in 鈥 if demand is through the roof, it may be best to feed that and more actively manage costs at a later time. But if growth is more modest, it may be prudent to weigh volume purchases against capital reserves or partial quantities to alleviate the impact of tariffs.
- Prioritize your hero products. Not every line item needs to bring revenue in equally, so consider the customer experience and impact of raising prices on your flagship products.
Shoring up financial resources
Many of the e-commerce leaders quoted here have considered additional capital or financing. Tariffs have drained companies of cash and forced them to consider what would happen if conditions worsen.
Storelli Sports secured multiple capital sources to ensure liquidity, in addition to making immediate adjustments like absorbing costs, raising prices, and shifting suppliers.
The Jefas has also thought about additional capital, though Diaz points out that, 鈥淚t鈥檚 really difficult for women and underrepresented founders to raise money.鈥 The company has explored taking out a loan.
Elaichi has also considered different financing options to support the business. 鈥淐apital is one of the biggest restraints,鈥 says Joyo. 鈥淪o far, we鈥檝e been bootstrapped. As we continue to grow, we鈥檙e going to need capital. I think about that a lot.鈥
While access to funding is certainly on many e-commerce leaders鈥 minds, they also have to consider their day-to-day operations. Preserving existing resources, or even taking fewer risks, can provide more financial stability during economic uncertainty.
Asset is taking a more careful and thoughtful approach to expansion into new sales/marketing channels and introducing new products. 鈥淲e鈥檙e less willing to sacrifice profit and loss health for aggressive growth metrics,鈥 says Casebeer. 鈥淲e will continue to grow, but there is a limit to the cost.鈥
鈥嬧婩ounder takeaways
- There鈥檚 no way around this 鈥 harsh capital and liquidity environments add stress to a business. Difficult choices may need to be made around operating costs and the line items that are truly indispensable to your company.
- If possible, diversify your capital sources. This, of course, is easier said than done 鈥 and so it may be effective to secure those in stronger market cycles in preparation for downturns.
Shifting business strategy
When the ground keeps shifting, so must the strategy 鈥 though the specific shifts in strategy are as unique as each business. E-commerce leaders may have to rethink how they plan, make decisions, and position themselves, even if it鈥檚 for the short term.
鈥淓ach business has a different path forward,鈥 says Doverspike. 鈥淚t鈥檚 tough to think that this is going to stay around forever. Maybe six months from now, I鈥檒l have a different outlook.鈥 Strolee has worked with its manufacturer and prepared for a seasonal sales boost, which is typical in the summer months. 鈥淲e have a couple of creative ways to be better prepared when this is resolved, or just have a path through it,鈥 Doverspike adds.
Storelli compared Storelli Sports鈥 challenges to COVID-era adjustments. For many e-commerce companies, a similar strategy might work: safeguarding survival and liquidity. Storelli Sports also models various scenarios, incorporating uncertainty into its strategies to maintain operational flexibility. 鈥淲e鈥檙e focused on emerging stronger, leaner, and more diversified once market conditions stabilize or alternative supply chains are solidified,鈥 says Storelli.
Joyo has become more outcomes-focused. With price fluctuations, it鈥檚 hard to know whether or not to take a risk. Instead of considering the decision based on price, he evaluates it based on the outcome. 鈥淚 compare two outcomes, and if one of the outcomes I cannot survive, it makes the decision a lot easier.鈥
Over the long term, Asset鈥檚 strategy includes intentional decision points so it can be 鈥渁gile, proactive, or reactive to multiple versions of the future,鈥 according to Casebeer. As e-commerce companies emerge from current conditions and begin to plan for the future, a multiversioned approach can let them quickly adapt when conditions change.
Economic uncertainty will inevitably happen again, and companies can benefit from multiple plans, each still ultimately focused on the company鈥檚 North Star.
鈥嬧婩ounder takeaways
- for multiple scenarios.
Relying on customers and resilience
Nimble. Adaptable. Ready to pivot. All qualities e-commerce companies need, especially during economic uncertainty.
鈥淩esiliency is the name of the game as a startup founder,鈥 Diaz points out. 鈥淲e have to figure it out. At the end of the day, we have to make sure that we鈥檙e providing a good product to our customers.鈥
While it may feel like decisions have an unpredictable outcome, companies don鈥檛 have to struggle in a vacuum. The Jefas leans into support from its customers. 鈥淲hen we tell the customer how much they鈥檙e impacting not only our platform, but our brand partners, they鈥檙e more willing to support us.鈥
Casebeer also recommends that e-commerce brands rely on the communities they鈥檝e built with customers to sustain the business through difficult times. 鈥淲hen you don鈥檛 have the time and money to do all the research and experiments, let your customers guide you,鈥 he says. 鈥淐ustomers鈥 problems and questions will inform the strongest operations.鈥
Economic resilience comes not only from making smart decisions and planning, but also from building a brand customers love. Tell your company鈥檚 story, tell your customers what you鈥檙e facing, and let them sustain your business with their continued support.
was produced by and reviewed and distributed by 麻豆原创.