Subee Cardenas
Subee Cardenas
Subee Cardenas

Subee is the Conference Coordinator of WHSL and Marketing Director of BuyLow Warehouse.

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How to Navigate Tariffs and Rising Costs in the Liquidation Industry

Tariffs. You think they’re just something politicians argue about on TV, and then one day you’re standing in your warehouse wondering why your pallets look different and why the math on your margins suddenly feels off.

Aug 7, 2025

Tariffs. You think they’re just something politicians argue about on TV, and then one day you’re standing in your warehouse wondering why your pallets look different and why the math on your margins suddenly feels off. It’s not always dramatic, but it’s constant. A small shift here, a delayed shipment there, and suddenly the products you could count on either cost more or don’t show up at all.

Anyone who’s been in this game for a while knows it’s never just about one thing. The liquidation, wholesale, and reselling world is changing. Tariffs are up, shipping costs are spiking, and supply chains are less predictable than ever. That can feel overwhelming, but it also creates opportunities for you to plan ahead and adjust.

Here’s a breakdown of what’s happening and how you can respond.

  1. Higher Costs on New Inventory (Upstream Impact)

What happens: Tariffs on imports, especially from major manufacturing countries like China, push the cost of new products higher for retailers and big box stores.

Impact on the industry:

  • Retailers may overprice, overorder, or shift sourcing, which changes what ends up in the liquidation channel

  • Higher costs mean fewer overstock items and smaller margins for suppliers

  • Truckload pricing may rise as liquidation sources try to pass on their higher costs

Who it hits: Liquidators, bin stores, and resellers who rely on consistent pricing and margins

  1. Shift in Product Types and Categories

What happens: Tariffs make certain categories like electronics, tools, or textiles more expensive or less available due to decreased imports

Impact on the industry:

  • Changes the type of inventory entering the secondary market, with more domestic goods and fewer foreign brands

  • Could lead to oversupply in untariffed categories and scarcity in others

  • Short-term arbitrage opportunities may appear, but long-term stability is less predictable

Who it hits: Buyers specializing in niche categories or relying on consistency

  1. Increased Demand for Domestic and Liquidated Goods

What happens: Higher import costs push retailers and small businesses to look for cheaper domestic alternatives, like liquidated goods

Impact on the industry:

  • Short-term boost in demand for truckloads and surplus inventory

  • Could bring new buyers into the liquidation space, increasing competition

  • Good for sellers who maintain transparency and quality, but risks exist with market saturation

Who it helps: Truckload sellers and trusted liquidation sources

How to Respond Strategically

Here are some smart moves to prepare for changes and leverage emerging opportunities:

  1. Diversify Sourcing Channels

Why: Tariffs may disrupt supply or make certain categories more expensive

How to do it:

  • Build relationships with multiple liquidation suppliers

  • Explore domestic manufacturers or regional distributors

  • Attend industry events to meet new suppliers in person

  1. Focus on Popular Domestic Categories

Why: Some imported products may become scarce or costly, so demand shifts to domestic alternatives

How to do it:

  • Stock untariffed or US-made items like general merchandise, home goods, or refurbished products

  • Monitor which categories are heating up due to import cost increases

  • Use liquidation to secure inventory before prices rise

  1. Raise Prices Strategically

Why: Competitors may raise prices, and you can too, without losing customers

How to do it:

  • Bundle items, offer “buy more save more” deals, or create premium mystery boxes

  • Highlight value with better photos, descriptions, and simple guarantees

  • Communicate clearly that prices reflect changing market conditions

  1. Monitor Category Trends

Why: Tariffs create ripple effects; what’s slow today could be hot tomorrow

How to do it:

  • Track sales reports and use tools like the built in eBay Seller Hub or Keepa

  • Follow industry reports like the WHSL State of the Industry or the McKinsey State of the Consumer

  • Engage with reseller communities on platforms like Reddit, Facebook groups, and WhatsApp

  1. Lock in Trusted Supplier Relationships

Why: Higher demand brings more competition and potential bad actors

How to do it:

  • Commit to repeat deals or long-term agreements with reliable suppliers

  • Negotiate early access to loads in exchange for loyalty

  • Vet new suppliers carefully, especially those offering deals that seem too good to be true

  1. Educate Yourself and Your Team

Why: Businesses that understand the market adapt fastest

How to do it:

  • Attend webinars or conferences focused on sourcing, shipping, and strategy

  • Subscribe to newsletters and updates about wholesale and liquidation trends

  • Train your team to spot shifts in value and customer buying behaviors

Closing Thoughts

Rising tariffs and supply chain shifts are tough, no doubt about it. But they don’t have to throw your whole operation off track. The businesses that do well are the ones that stay flexible, keep an eye on what’s moving, and nurture the relationships that matter.

At the end of the day, it’s not just about surviving the squeeze. It’s about finding your rhythm, spotting the opportunities that others miss, and building something that lasts, even when the market feels unpredictable. It’s a grind, but it can pay off if you stay sharp and stay connected.