Supply Chain Survival Guide with Kerim Kfuri: How Tariffs Impact E-commerce Margins

In this episode of the Supply Chain Survival Guide, Kerim Kfuri—Alibaba.com Ambassador and the platform’s first U.S.-based verified supplier—explains how tariffs can directly affect e-commerce businesses and quietly erode profit margins. For small business owners sourcing products internationally, tariffs are often misunderstood or overlooked until they show up as unexpected costs. This guide breaks down what tariffs are and why they matter before you place an order.

Kerim defines a tariff as a tax applied to goods as they move across international borders. These taxes increase the landed cost of products, which can significantly reduce profitability if they’re not accounted for early. Even a small tariff percentage can have a major impact when applied to large or recurring shipments. Without proper planning, businesses may find that a product that looked profitable on paper becomes unsustainable once import duties are applied.

For Alibaba.com small business owners, proactive tariff management is key to protecting margins. Kerim emphasizes the importance of correctly identifying HTS (Harmonized Tariff Schedule) codes, which determine how goods are classified and taxed. He also highlights the value of AI-powered support tools like Accio, Alibaba.com’s automated sourcing assistant, which helps buyers navigate tariff considerations during the sourcing process. By using AI to surface relevant cost factors earlier, buyers can make smarter sourcing decisions, avoid surprises, and maintain profitability as they scale their global supply chains.