Tax hikes looming, no resolution in sight

December 15th tariff hikes on Chinese goods approach with no resolution in sight, companies proactively shipping goods to beat the tax hike.

As December 15th looms over the horizon (the proposed date for the additional Tax Hikes on over $156 billion worth of Chinese goods), Commerce Secretary Wilbur Ross and various other experts are believing less and less in a resolution to avoid the tariff increases.

The hikes, meant to be a penalty, is actually dragging down both economies as U.S. and China based companies are holding off on investments, development and production leading to layoffs, growth restrictions and losses in various sectors of the economy.

Plan B

To circumvent further tariff hikes, that will likely continue or be upheld until the elections are over, many companies have increased their exports and distribution efforts to beat the deadline as proactive staging of merchandise is an effective way to deal with the proposed tax increases.

What’s more, more tariffs to other sectors of the world are being threatened with tariff hikes. France, for example, has recently placed new taxes on U.S. based digital services. A retaliatory tariff increase was proposed this past Monday on cheeses, beauty products, champagne and purses coming from France. EU has yet to respond but it is likely that this may lead to further increases and is prompting more and more companies to export early and in higher quantities.

December 15th tariff hikes on Chinese goods approach with no resolution in sight, companies proactively shipping goods to beat the tax hike - 1

Have you seen our case studies? See what Unilogic did for one of its fulfillment clients here:

Businesses are challenged with the lack of having the necessary physical space to store their products or the infrastructure to directly manage inventory. As a result, Sellers seek the services of a fulfillment warehouse partner where they can send their merchandise, and the outsourced provider manages ancillary warehouse services for them and the shipping of the goods to Amazon Warehouses or directly to their customers.

Our client is an Amazon seller who specializes in selling Steel-toe shoes.  However, as many Amazon sellers discover, Amazon warehousing fees are excessive as their fee structure is designed to encourage quick in and out movement of merchandise at Amazon Warehouses.  Our client was incurring excessive fees and needed a partner that could provide a storage solution that essentially would serve as a staging site for posterior delivery to Amazon warehouses on demand.

The Unilogic Solution:

Unilogic tailored a fulfillment solution that consisted of the receipt of the steel toe shoe boxes at our warehouse.  This merchandise is then segregated by size, model and color.  Unilogic manages their fulfillment orders and the shipping of orders to the Amazon warehouse. This solution facilitated the management of order staging, product overflow and stock replenishment.  Simultaneously this solution allows our partner to realize tremendous cost savings by-passing Amazon long-term storage fees while not compromising order fulfillment timeliness.

Unilogic’s fulfillment services handle key inventory management, order packing, and shipping operations for ecommerce businesses. Utilization of this services offers time and resource savings on many fronts for our partners.  Outsourcing these time-consuming tasks to Unilogic allows our partners to focus on growth drivers like product development, marketing, and multichannel expansion.

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