How to Navigate Ecommerce Marketing Through Tariff Uncertainty

A Strategic Guide for Online Businesses

At 624 Agency, our work is always centered around helping our clients make smart decisions about their marketing so that they can invest in what will really move the needle for their business. The tariffs have been far-reaching and the full impact is still unknown, and we know many business owners and marketers are feeling a lot of uncertainty about how to proceed. Right now, more than ever, optimizing your marketing efforts towards profitability and not just ROI is the key to success. A strong ROAS is great, but you have to make sure the long-term value of these acquired customers can sustain a thriving business. 

With that in mind, we're sharing our recommendations for what to do and what not to do in this uncertain and difficult time. 

DO: Strategic Actions for Tariff-Impacted Marketing

Track Essential Business Health Metrics

These key performance indicators reveal your overall business health and are vital for understanding what's working in your marketing strategy:

• Calculate Customer Acquisition Cost (CAC): Divide your total marketing and sales costs by the number of new customers acquired

• Compare CAC to Customer Lifetime Value (CLTV): Ensure your CLTV significantly outweighs your CAC

• Analyze Customer Segments: Track segment-specific CAC as it varies across different customer groups

• Estimate CLTV: Factor in average purchase value, purchase frequency, and customer retention rates

• Monitor CLTV Changes: Track how lifetime value evolves as customers continue engaging with your business

Partner Effectively with Your E-commerce Marketing Agency

If working with an e-commerce marketing or ads agency, dive deeply into their metrics and challenge them to explain how they're optimizing digital campaigns for CLTV. Ensure they understand both your e-commerce CLTV and CAC, aiming for a minimum CLTV to CAC ratio of 3:1 – not just strong campaign ROI.

Be Proactive with Customer Communication

According to the International Trade Administration, businesses that proactively address price adjustments are 35% more likely to retain customers. Remain sensitive to shifting consumer sentiments regarding tariffs and incorporate these considerations into your marketing messages. Focus on:

• Product value proposition

• Brand differentiators

• Social proof (reviews and user-generated content)

• Clear price justification

Prioritize Customer Retention Strategies

Continue investing in marketing channels that support repeat purchases. Research consistently shows it costs five times more to acquire new customers than to retain existing ones. Focus on:

• Email marketing campaigns

• SMS engagement programs

• Customer loyalty initiatives

These channels help offset increasing customer acquisition costs while maintaining relevance among price-sensitive consumers during economic uncertainty.

Consider Gross Margin in Decision Making

• Calculate Gross Margin: Divide gross profit by revenue

• Assess Profitability Potential: Higher margins create more flexibility for marketing spend

• Optimize Product Focus: Emphasize promoting higher-margin products to maximize marketing ROI

DON’T: Practices to Avoid During Tariff Uncertainty

Avoid Reactive Marketing Cuts

Don't slash marketing budgets without considering the bigger picture. Knee-jerk reactions typically lead to long-term brand damage and market share loss.

Approve Additional Ad Spend (without question)

Don't increase paid advertising if you're unclear whether it's acquiring profitable customers with sustainable lifetime value.

Skip Unproven Marketing Tactics

Now is not the time to experiment with:

• Expensive first-time influencer campaigns

• Untested brand partnerships

• New marketing channels requiring significant investment

Avoid Appealing to Customer Sympathy

Consumers respond poorly to brand sob stories or appeals for support based on your business challenges. Instead, focus communications on:

• The unique value you provide

• How your products solve customer problems

• Benefits that justify price despite tariff impacts

Need a Personalized E-commerce Marketing Strategy for Tariff Response?

Want to discuss implementing these e-commerce marketing recommendations for your specific online business situation? Our e-commerce marketing team is ready to help – book a free strategy session with our founders to gain clarity on effective digital marketing approaches during tariff uncertainty.

*[ROAS]: Return on Ad Spend

*[CLTV]: Customer Lifetime Value

*[CAC]: Customer Acquisition Cost

*[ROI]: Return on Investment

*[UGC]: User-Generated Content