Your SKU Might Be The Problem

So some products are no longer viable at current tariff rates. That is the hard thing to say, but it is true. Here's the test I run with brands. Take your true landed cost with current duties, freight, and fees. Add your 3PL cost, add your shipping cost to the customer, add your return rate cost. Now subtract from your retail price. What is left is your contribution margin before marketing and overhead. If that number is below 30%, we have a problem. If it's negative, you do not have a pricing problem, you have a product problem. One brand I worked with had a hero SKU they had sold for 3 years, ran the math, with 2025 tariff rates, contribution margin was 6%. They were running Meta ads to sell a product that had no room to survive. Not every product can be saved by switching suppliers or renegotiating freight, Sometimes the answer is hard pivot. Raise the price, redesign the product, or retire the SKU. The worst thing that you can do is keep selling something that is quietly destroying your business. Next week, Ding Wei, the shipping cost nobody is measuring.