How Digital Commerce Helps Companies Offset Tariffs and Lower Costs of Goods Sold

Written by David Blue , CEO, Saltbox Mgmt

Fluctuating trade policies and unpredictable tariffs are putting pressure on global supply chains. For businesses importing goods from overseas or dealing with multinational production and logistics, these headwinds can drastically increase the cost of goods sold (COGS), eat into margins, and force challenging pricing decisions. 

Tariffs can spike import costs by 10%, 25%, or more overnight. For companies that haven't built tariff flexibility into their pricing models, this is a direct hit to gross margin. And while large enterprises may have strategies in place, most companies don't. And unfortunately when companies try to pass those costs to customers, they risk losing market share and the customer relationships they worked so hard to build. 

However companies don’t have to take these challenges lying down. Investing in digital commerce solutions, specifically those with strong integrations into supply chain, pricing, and fulfillment systems, is a powerful strategy to improve operational efficiencies, create cost advantages, and offset the impact of tariffs.

Reducing COGS and Tariff Exposure with a Unified Digital Commerce Platform

Here are three ways in which digital commerce helps companies mitigate tariff-related costs, improve COGS, and deliver greater value to customers at the same time.

1. Smarter Sourcing Through Integrated Supply Chain 

Digital commerce platforms can connect to real-time supplier networks, ERP systems, and logistics providers, allowing companies to dynamically adjust sourcing based on landed cost, lead times, and tariffs.

For example, if a U.S.-based company is importing the same part from both China and Mexico, a tariff hike on Chinese imports can trigger a system-based preference for Mexican suppliers in order management. This type of agility ensures that sourcing decisions aren’t static and helps avoid unnecessary tariff costs.

2. Streamline the buying experience while automating pricing and fulfillment 

By investing in digital storefronts and order management infrastructure, companies can streamline routine transactions and empower customers to self-serve for reorders, pricing, and product information. This reduces the need to scale sales teams at the same pace as revenue growth and allows sales reps to focus on higher-value consultative selling. Digital commerce also enables greater control over pricing and fulfillment, helping companies protect margins and absorb tariff-related cost increases without passing them directly to customers.

3. Digital Commerce is a Margin Expansion Engine

The ability to reduce COGS through better sourcing, tighter inventory, and smarter automation turns digital commerce from a sales tool into a margin engine. While ERP and logistics systems have long helped manage cost centers, digital commerce brings those capabilities into the customer-facing layer, where decisions actually get made. Companies that treat digital commerce as a strategic lever, not just a front-end website, are better positioned to outmaneuver competitors when tariff changes or supply shocks hit.

The Buyers Win Too

Investing in digital commerce doesn’t just help companies protect their own margins, it also directly benefits their customers, here’s how:

• More competitive pricing: by reducing costs behind the scenes, businesses can hold pricing steady even when peers are raising theirs due to tariffs. This is a win-win that builds customer trust.
• Faster, more transparent fulfillment: digital commerce platforms tied to real-time fulfillment data can offer customers accurate shipping costs and timelines, equating to no surprises and fewer abandoned carts.
• Deeper personalization: with the cost savings from streamlined digital operations, companies can invest in more marketing, dynamic pricing, or personalized storefront experiences that deepen engagement and reduce churn. This is especially true when your commerce platform is an extension of your CRM platform like Salesforce.
• Responsiveness to market changes: when customers see a business adapt quickly to supply disruptions or changes without sacrificing quality or speed they’re more likely to become repeat buyers.

The Time to Invest is Now

If the past few years have taught us anything, it’s that disruption and uncertainty is now the rule, not the exception. Change and uncertainty are maybe the only true constants nowadays. Tariffs, pandemic-era supply shortages, geopolitical risks - all of these threaten the cost and availability of goods.

Digital commerce isn’t a luxury, it’s a hedge. An insurance policy against change and uncertainty. It gives companies the tools to turn cost pressure into opportunities; reducing COGS, protecting margins, and delivering greater customer experiences. For companies that make the investment now, the payoff isn’t just in margin protection or tariff mitigation, it’s in customer loyalty and a more resilient business model. The best part? This isn’t theory. The benefits are measurable, compounding, and available to any business willing to view commerce as more than just a sales channel, but as a strategic engine for long-term growth. 

The bottom line is this: While tariffs may be out of your control, how your business responds to them is not. 

David Blue is a strategic leader in the digital transformation landscape, with over a decade of leadership experience. He previously served as Executive Vice President of Sales & Alliances at 7Summits, an IBM Company, and held several key roles at Magnet360, including Vice President of the West and Senior Director of Sales. His extensive background in sales and alliances has shaped his expertise in driving growth and innovation.

Saltbox Mgmt is the expert in unified commerce on the Salesforce platform, providing cross-cloud consulting services that help businesses future-proof through digital transformation. Known for deep expertise in Commerce Cloud and Order Management, Saltbox takes a holistic approach to unified commerce, enabling seamless, omnichannel experiences for modern buyers. With more than 100 years of combined experience across Salesforce products, people, and ecosystems, Saltbox delivers scalable, maintainable solutions built for long-term success. 

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