[ BDSN ] 💰Tariff strategies from BDSS XI in Iceland

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BDSS XI Iceland Audience Voting Results

Top 5 Best Sponsor Speech Voting (out of 10)

1. Pattern

2. Sophie Society

3. Trellis

4. Avask

5. Bid X

Top 10 Best Speaker Voting (out of 13)

1. Josh Hadley

2. Ritu Java

3. Dan Ashburn

4. Melisa Vong

5. David Lang

6. Leo Sgovio

7. Daniela Bolzman

8. Patrick O’Neill

9. Michelle Barnum Smith

10. Christi Michelle

Top 5 Best S.M.A.R.T. Contest Voting (out of 10)

1. Jo Lambadjieva

2. Joseph Hides

3. Rey Barcelo

4. Josh Hadley

5. Matt Kostan

💰 TARIFF STRATEGIES from BDSS XI in ICELAND

At last week's BDSS XI event in Iceland, sellers and industry leaders tackled the seismic changes caused by newly imposed tariffs.

Attendees received pivotal guidance from top Amazon sellers, including Pattern's Rob Hahn ($1.8 billion seller) and 8-figure entrepreneurs Brandon Young and Bernie Thompson during the S.M.A.R.T. competition.

Understanding the Tariffs: Strategic Clarity from Pattern

Rob Hahn, Chief Operating Officer at Pattern, emphasized the necessity of calm, strategic thinking in reaction to the new tariffs.

Hahn clarified a common misconception, highlighting that these tariffs are based not on reciprocity but rather on the trade deficit with respective countries. Importantly, the tariffs impact manufacturing costs directly, not the final retail price, suggesting price increases might be less dramatic than anticipated.

His key message to sellers: avoid panic-driven decisions. He stressed that these tariffs aim primarily to drive international negotiations rather than establish permanent trade barriers.

Hahn advised businesses to slow down, evaluate their inventory strategies, and consider holding inventory to increase its market value amid fluctuating costs.

Additionally, he recommended examining international expansion and reinforcing supply chain redundancies through near-shoring or re-shoring as prudent long-term strategies.

Smart Moves: Deferral Strategies from Bernie Thompson

Bernie Thompson illuminated another angle during the S.M.A.R.T. showdown by advocating for tariff deferral strategies. Thompson noted the immediate financial implications: duties on goods for his own brand skyrocketed overnight from $35,000 to $2.3 million.

His recommendation to sellers facing similar scenarios was clear—utilize bonded warehouses to defer duties and buy time until tariff rates potentially decrease.

Thompson specifically highlighted the Canadian bonded warehouse system as an effective and underutilized alternative, given its ease and rapid registration compared to the U.S. system.

His strategic deferral approach aims to minimize immediate financial impacts while positioning businesses advantageously should tariffs lower in future negotiations.

Tactical Precision: Cost Breakdown Strategies from Brandon Young

Brandon Young offered tactical insights with advanced cost-saving methods. He advocated for the "first sale doctrine," which allows businesses to pay tariffs based on the original sale price of components rather than inflated intermediary costs.

By meticulously breaking down each product component's actual cost—separating items like instructional content, tooling, molds, branding, and software—sellers could significantly reduce dutiable costs.

Young emphasized stringent documentation and compliance to safely navigate these tariff strategies, potentially saving sellers millions of dollars. He also encouraged sellers to proactively engage with their suppliers for transparent pricing structures, reinforcing that accurate documentation and separation of non-dutiable expenses could substantially lower overall tariff obligations.

Moving Forward with Confidence

As these industry leaders articulated at BDSS XI, the new tariff landscape presents challenges but also significant opportunities. Sellers are advised to remain strategic, leverage deferral techniques, meticulously manage documentation, and consider broader international market opportunities.

In turbulent times, those who navigate strategically and carefully will find themselves not only surviving but thriving amidst complexity.

Listen to 2 Informative Supply Chain Podcast Episodes

Two relevant podcasts that Kevin hosts and co-hosts have come out in the past week that you should really listen to about Supply Chain:

🕹️ HARNESSING AUDIENCE OBSESSIONS for SUCCESS

At BDSS XI in Iceland, Ritu Java, CEO of PPC Ninja, won second place with her presentation that highlighted an essential shift every Amazon seller must embrace: moving from keyword-driven strategies to audience obsession and conversational e-commerce powered by AI tools like Amazon's Rufus.

Ritu explained that traditional keyword-centric approaches are quickly becoming outdated due to the rise of conversational AI platforms such as Amazon’s Rufus, which accounts for an estimated 13% of all Amazon search queries.

Rufus not only understands text queries but also comprehends visuals and engages shoppers in real-time conversations, leveraging semantics, inference, and personalized results.

She emphasized Eugene Schwartz’s classic marketing concept—the Five Levels of Awareness—as crucial for sellers to navigate and effectively target diverse customer segments, ranging from unaware audiences to highly product-aware consumers.

Ritu argued that mastering these five levels through strategic content can significantly boost customer engagement and conversion.

Actionable Tactics for Sellers:

1. Implement the Five Levels of Awareness Framework:

• Step 1: Identify your audience’s awareness levels:

  • Unaware

  • Problem-Aware

  • Solution-Aware

  • Product-Aware

  • Most-Aware
    

• Step 2: Tailor your listing content to each level:

  • Unaware: Educate through curiosity-driven content.

  • Problem-Aware: Highlight relatable problems and share compelling testimonials.

  • Solution-Aware: Offer clear product comparisons and demonstrate specific benefits.

  • Product-Aware: Reinforce trust using proof of effectiveness, like customer testimonials or demonstrations.

  • Most-Aware: Create urgency with limited-time deals or special promotions.
    

• Step 3: Deploy tailored ads and videos addressing each awareness level simultaneously to capture diverse buyer intents.

2. Optimize Listings for Conversational AI (Rufus):

• Step 1: Extract Rufus-generated prompts from your Amazon listing to understand current conversational queries (she gave a tools to do this).

• Step 2: Proactively create and incorporate FAQ-style images into your Amazon listings addressing these conversational queries, even placing them in less visible slots (images 7-10) to enhance indexing without compromising visual appeal.

• Step 3: Use targeted phrases and clear, noun-rich descriptions (especially in alt-text and back-end fields) to ensure comprehensive indexing and enhance visibility within Rufus’s conversational results.

Quick Win:

Create and insert an FAQ graphic addressing common Rufus prompts on your listings immediately, ensuring shoppers receive clear answers directly from your content rather than ambiguous AI-generated responses.

By embracing Ritu Java’s recommended tactics—leveraging AI-driven insights and crafting hyper-relevant content—Amazon sellers can enhance their listings’ effectiveness, drive deeper engagement, and significantly improve their competitive positioning in the rapidly evolving AI-centric marketplace.

You can watch the entire presentation and get all of the custom seller tools she provided if you have access to the BDSS XI Iceland replays (includes all 26 talks),

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😱 PHOTOS from BDSS XI ICELAND

✌🏼 See you again Thursday …

The answer to today’s STUMP BEZOS is
$2.3 trillion is from marketplaces, not DTC sites