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President Donald Trump's latest round of tariffs added a new dimension to the trade war with China: US consumers are going to get hit directly.
The previous round of tariffs imposed by the president on $50 billion worth of Chinese goods focused almost exclusively on industrial goods and intermediate parts on final goods that are then sold to consumers.
This led to an indirect hit to consumers. As businesses faced higher costs for input goods, the companies were forced to either cut back in other areas — such as laying off workers — or pass along the price increase to consumers.
While the effect on consumers has trickled down previously, the latest round of tariffs on $200 billion worth of Chinese goods constitutes a direct hit.
Many of the 5,745 items on the newest tariff list are consumer goods or things that Americans buy every day: fruit juice, furniture, air conditioners, and more.
ALso Read: Top chinese wholesale websites you should know
The consumer goods affected represents a dramatic increase form the previous round of tariffs, according to a breakdown of a previous version of the list of goods affected. (Many of those items made it to the final list.) Chad Bown, Euijin Jung, and Zhiyao Lu of the Peterson Institute for International Economics say the reason for the shift is simple: The were only so many goods left to hit.
"Consumer goods made up only 1% of the products of the first $50 billion of imports from China subject to his announced tariffs. The rest affected intermediate inputs and capital equipment," the economists wrote. "The explanation for this shift lies in the fact that there are fewer and fewer such supply chain elements left to target. Consumer products are much of the imports from China that were left."
The sellers could choose to eat those new duties and see their margins decline. But based on price changes for goods hit with tariffs in previous rounds, it is likely that at least some of the cost increase will be handed to consumers.
Many members of the Trump administration have argued that the increases will be minor and most Americans won't notice.
""Well, you can do the numbers this way if you have a 10% tariff on another $200 billion, that's $20 billion a year. That's a tiny, tiny, tiny fraction of 1% total inflation in the US, because it's spread over thousands and thousands of products," Commerce Secretary Wilbur Ross said Tuesday. "Nobody's going to actually notice it at the end of the day."
But many economists disagree, since businesses that sell the same goods but don't source the product from China may see an opportunity to grow their profits by matching the price increase. Ultimately, this will lead to price increases for consumers and a boost to inflation, economists say.
Ian Shepherdson, chief economist at Pantheon Macroeconomics, argued in a note to clients on Tuesday that while the real danger lies in the tariffs' increase from 10% to 25% at the start of 2019, the initial hit will be significant, too.
"The inflation hit is harder to quantify, but it will be meaningful," Shepherdson wrote. "Most items of clothing and furniture are exempt from the tariffs but many food items are included. We don't know for sure how quickly importers will raise wholesale prices of the affected items, or how quickly manufacturers of substitutes for Chinese products will lift their prices."
Based on Shepherdson's rough math, the new tariffs could add another 0.5 percentage points to the current consumer price index — which, based on the latest CPI release, would boost the inflation gauge to 3.2% year-over-year. Such an increase would not go unnoticed by policymakers or American families.
"That's enough to matter, both to the Federal Reserve and to the public, who will notice when prices in Walmart start to jump," Shepherdson said.
Are there any welcome reseller dropship business in the world?
As we know that reselling and distributing business are the top businesses in the world now, and the drop shipping business model is become the hottest topic nowadays.
There are so many people may ask ‘what is the differences between resellers and distributors’. Resellers means companies or individuals who purchases merchandises and resell it to end-customers, they can make profits from the price differences.
Distributors are the entity between products and supply chain, it performs the same functions and roles as wholesalers in the market. Moreover, drop shipping is one of the most popular business model around the world, and it is a business model that welcome resellers and distributors.
In this post, I’ll explain what is the differences between them, and give some recommendation about how to make a selection.
Differences between resellers and distributors
As the definition shows in the previous part, it can clearly find that there are some differences between resellers and distributor.
In the following table below, it shows the some pros and cons of resellers and distributors. It is believe that both of resellers and distributors are have its huge spaces to make profits because of the large size of international market.
Moreover, both of them are not bound by suppliers, which means most of them can easily switch products that are selling, and they can also cooperating with multiple suppliers to make sure they are freely to select products that they really want to sell. However, as a distributor in the t shirt drop shipping business, they can implement its planned sales but not selling in the dark.
Resellers do not have the spaces to set up a sales plan because they need to purchase a lot of merchandises as inventories, and then randomly selling it to end-customers. In addition, distributors are much more services oriented, which means distributors are stay focus on not only selling merchandises, but also providing services. In contrast, resellers are stay much more focus on selling.
In addition, both of resellers and distributors are have the lower profit margins, which should make them gain fewer profits from the drop shipping business. Furthermore, resellers should have higher inventory risk because they are used to purchase a bunch of inventories.
In contrast, the drop shipping business model allows distributors do not need to carry inventories at all, and it should be helpful for distributors to have more funds for investment. It can also clearly understand that resellers are have less commitment than distributors, and distribution should be the great strategy for those people without resources or even do not built up a actual company yet.
As the description above, it can clearly find that reseller is quite similar to distributor in the drop shipping business. However, there are still have some differences between them.
On one hand, it is believed that distributors are much more fits for those individuals or companies who are beginners to international business. Moreover, join distributors can help them to make higher sales, which also can help them to get more services such as logistic, product selection and so on.
On the other hand, resellers are fits for those established companies with several lines of products. It is helpful for companies to spread products among countries and regions in the world.
In conclusion, it is believe that both resellers and distributors can easily join the drop shipping platform to start their drop shipping in the world. Moreover, distributors should be the better choices for people who wants to start dropship baby products business.
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The landing page is designed to have one goal: to turn visitors into solid prospects and buyers. A good e-commerce landing page design will bring more drop shipping companies conversions, more sales and more profit.
In e-commerce, a 1% overall conversion rate is considered an average.
By investing in the time and resources required to optimize your current e-commerce landing page, you can use your existing website traffic to double or triple your revenue.
If you've designed an ecommerce landing page, the tips and tricks in this article will help you optimize your store, resulting in more conversions to potential customers or direct sales.
Make eye-catching headlines
The title is the first thing a visitor will see. Make sure it's big, bold and easy to read. Take Nike as an example. Their campaign landing page has a simple but powerful message that you can't miss. This approach may not work for little-known products, but bold and violating the rules will make your products stand out and attract the attention of potential customers.
When using a title, make sure you don't use industry terminology unless you clearly know that your target audience will understand it. Experiment with CoSchedule's Title Analyzer to find the perfect combination of emotion, power and urgency vocabulary to help you create compelling headlines.
To find out the power vocabulary and tips on how to generate powerful titles, be sure to check SumoMe's Power Words Cheatsheet and Buffer's Ultimate Headline Formulas.
Use stunning images
Just look at the gorgeous image of the floating iPad.
The combination of eye-catching headlines and stunning images can appeal to the emotional aspects of the client, thus illuminating their strong desire to act. Powerful images can outdo thousands of words.
Jacob Nielsen's usability test proves that people are very concerned about the picture. When talking about people, photos of real people get a lot of attention, while over-photographed photos are mostly ignored.
If you are looking for top photos on the landing page, check out Stocksy, Unsplash, Stock Up and StockSnap.
Use a lot of negative space
A negative space (often called a blank space) is the space around and between the elements of a page or image. Using negative space helps to build a hierarchy, clean up the layout, and draw attention to certain elements of the landing page.
Increase the spacing in the current landing page, don't be afraid to make room for the layout as it will significantly improve the emphasis on the title, product image or call-to-action button. Just look at the Oculus Rift landing page and how much negative it has to emphasize the product and call-to-action buttons.
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