{"id":10823,"date":"2025-12-12T16:41:13","date_gmt":"2025-12-12T08:41:13","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=10823"},"modified":"2025-12-13T17:49:07","modified_gmt":"2025-12-13T09:49:07","slug":"protect-profit-margins","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/","title":{"rendered":"Let\u2019s Talk About Tariffs and How to Protect Your Profit Margins"},"content":{"rendered":"\n<p>First things first: How are you doing? Are you taking care of yourself and drinking enough water? Before we dive in, we want to acknowledge the moment. If you run a business or you\u2019re at the helm of decision-making for commerce, we see you. As tariffs loom large and create a cloud of uncertainty, we recognise that it\u2019s a challenging environment for businesses and consumers alike. But we\u2019re here to remind you that markets have faced adversity before \u2014 and they always find a way to bounce back. You (and your business) are resilient.\u00a0<br><br>At a time when so much of your business is outside your control, commerce leaders still have a few cards up their sleeve to help cut operational costs, protect profit margins, and reduce the impact of tariffs. During a tumultuous time, here\u2019s how to use your <a href=\"https:\/\/www.salesforce.com\/ap\/form\/commerce\/ecommerce-capabilities\/\" target=\"_blank\" rel=\"noreferrer noopener\">ecommerce capabilities<\/a> to safeguard your bottom line. We offer general, high-level advice that can be implemented regardless of the ecommerce platform you use, as well as actionable, in-app steps for businesses that use Salesforce products.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-review-and-adjust-your-pricing-strategies\">1. Review and adjust your pricing strategies<\/h2>\n\n\n\n<p>To navigate the impact of tariffs, you need a strategic, data-driven approach to pricing. Start by analysing product-level performance to identify where you have room to adjust \u2014 high-margin or inelastic items are often safe bets for moderate increases, while price-sensitive or commoditised products may require more cautious handling. Consider bundling tariff-affected items with unaffected ones to maintain perceived value, or offering tiered pricing where loyal or high-volume customers see smaller increases. Use loyalty program data to identify your most valuable customers and personalise offers accordingly \u2014 the right promotion at the right time (like a limited-time discount or exclusive bundle) can help soften the blow of price changes and reinforce customer trust.<\/p>\n\n\n\n<p>You can also test changes through A\/B experiments on digital channels to help refine your strategy with smaller customer segments before rolling it out more broadly. And don\u2019t underestimate the power of transparency \u2014 customers appreciate knowing why prices are shifting. Just as importantly, share where you\u2019re intentionally holding prices steady to protect their wallets and deliver value where it matters most. That kind of honesty doesn\u2019t just build trust \u2014 it builds long-term loyalty.<\/p>\n\n\n\n<p>\ud83d\uded2 <strong>How to do this with Salesforce:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.salesforce.com\/ap\/blog\/dynamic-pricing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Dynamic pricing<\/a> and <a href=\"https:\/\/www.salesforce.com\/ap\/commerce\/product-bundling\/\" target=\"_blank\" rel=\"noreferrer noopener\">product bundling<\/a> can help immensely as tariff situations fluctuate. Leverage<a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=ind.comms_pricing_rules.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\"> Agentforce Commerce&#8217;s rules-based pricing<\/a> and bundling capabilities to adjust prices intelligently across SKUs \u2014 raising prices where elasticity allows and bundling where value perception can be enhanced. Easy to test, measure, and deploy across channels.\u00a0<br><\/li>\n\n\n\n<li>During times of uncertainty, A\/B tests are a valuable tool. <a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_ab_test_comparing_promotions.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Test different promotions<\/a>, messaging, and pricing to determine which resonate most with different customer segments. This also allows you to determine the best strategies before you roll new prices out in stores where the impact may be larger.<br><\/li>\n\n\n\n<li>Combine product, margin, and customer data in <a href=\"https:\/\/www.salesforce.com\/ap\/data\/\" target=\"_blank\" rel=\"noreferrer noopener\">Data 360<\/a>, then visualise insights with <a href=\"https:\/\/www.tableau.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tableau<\/a> to identify where tariffs hit hardest. This enables strategic, non-blunt pricing decisions and ensures you&#8217;re not making margin-eroding guesses. You can also implement margin-aware boosting: Create a <a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_how_is_search_rank_and_search_placement_inherited.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">search\u2011ranking rule<\/a> that prioritises gross\u2011margin contribution \u2014 and not just relevance \u2014 so higher\u2011margin products are shown first in results lists.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-negotiate-with-suppliers-and-diversify-distributors\">2. Negotiate with suppliers and diversify distributors<\/h2>\n\n\n\n<p>For most retailers, navigating tariff pressures isn\u2019t new \u2014 conversations with sourcing, <a href=\"https:\/\/www.salesforce.com\/ap\/commerce\/ecommerce-merchandising\/\">merchandising<\/a>, and supply chain teams have likely been underway for months. But as trade dynamics continue to evolve, now is the time to move from short-term mitigation to long-term resilience.\u00a0<\/p>\n\n\n\n<p>It\u2019s time to double down on supplier partnerships that offer flexibility, transparency, and shared incentives \u2014 whether through <a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=release-notes.rn_b2b_commerce_lex_tiered_pricing.htm&amp;release=228&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">volume-based discounts<\/a>, extended terms, or co-investments in efficiency. Consider accelerating test-and-learn sourcing pilots in lower-risk regions, particularly for categories most vulnerable to tariff volatility. Many retailers are also revisiting supplier segmentation strategies, assessing not just cost but also geopolitical exposure, lead time, and ease of substitution. The goal isn\u2019t to overhaul your sourcing model overnight \u2014 it\u2019s to build optionality into the system so you can respond quickly if and when conditions change. This next chapter isn\u2019t about reacting harder \u2014 it\u2019s about planning smarter.<\/p>\n\n\n\n<p>\ud83d\uded2 <strong>How to do this with Salesforce:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With Agentforce Commerce, you can enable agile merchandising around sourcing realities as they change. Use real-time supply insights to <a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_configuring_promotion_preferences.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">dynamically adjust which products are promoted<\/a>, bundled, or featured \u2014 keeping margin and availability front and centre.<br><\/li>\n\n\n\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_intelligence_dashboards.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Create a custom dashboard<\/a> to determine supplier risk in real-time using Data 360 and Tableau. This allows you to centralise and visualise supplier performance, exposure, and cost trends to support more strategic negotiations and smarter diversification decisions.<br><\/li>\n\n\n\n<li>Utilise collaboration tools like <a href=\"https:\/\/slack.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Slack<\/a> to increase coordination and visibility between cross-functional teams like suppliers, merchandisers, marketers, and store associates. This ensures decisions are made in harmony. For example, you won\u2019t run the risk of a scenario where supply chain holds off on importing goods that impacts a marketing campaign launch.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-enhance-supply-chain-visibility\">3. Enhance supply chain visibility<\/h2>\n\n\n\n<p>Business leaders understand that visibility isn\u2019t just about <a href=\"https:\/\/www.salesforce.com\/ap\/commerce\/order-management\/inventory-management-guide\/\">tracking inventory<\/a> or shipments \u2014 it\u2019s about delivering on the promise you make to your customers. Whether that promise is delivery date, a product in stock, or a consistent brand experience, keeping it requires a deep understanding of the full product lifecycle.<\/p>\n\n\n\n<p>It\u2019s crucial to know where your goods originate, how tariffs and regional costs impact them, and where risk could compromise availability or fulfillment. To stay ahead, businesses need to dynamically monitor inventory turnover, holding costs, and lead times \u2014 then act quickly to adjust safety stock, rebalance inventory, or negotiate smarter reorder terms. It\u2019s not enough to know what\u2019s happening in your supply chain \u2014 you need the operational muscle to respond in real time, so issues are resolved before they ever reach the customer. In today\u2019s environment, this responsiveness is what earns loyalty.<\/p>\n\n\n\n<p>\ud83d\uded2 <strong>How to do this with Salesforce:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use predictive inventory intelligence insight to mitigate disruptions and reroute inventory to avoid impacted regions.&nbsp;<br><\/li>\n\n\n\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_sorting_rules.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Set up Sourcing Rules<\/a> to prioritise warehouses or suppliers in regions where tariff rates are more favourable.<br><\/li>\n\n\n\n<li>Set up automated alerts to notify you of critical supply chain events, such as delays, inventory shortages, or changes in tariff regulations. This ensures you can respond quickly to mitigate any potential issues.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4-optimise-fulfillment-without-compromising-the-customer-experience\">4. Optimise fulfillment without compromising the customer experience<\/h2>\n\n\n\n<p>As fuel prices climb and tariffs squeeze margins, <a href=\"https:\/\/www.salesforce.com\/ap\/commerce\/order-management\/fulfillment-software\/what-is-fulfillment\/\" target=\"_blank\" rel=\"noreferrer noopener\">fulfillment<\/a> optimisation has become more than a cost-saver \u2014 it\u2019s a competitive advantage. Many businesses have already streamlined basic operations, but there\u2019s now an opportunity to go deeper.<\/p>\n\n\n\n<p>Identify inefficiencies not just in packaging or shipping, but in how orders are routed, which facilities are prioritised, and how fulfillment choices affect the customer experience. Small improvements like right-sizing packaging, reducing split shipments, or shifting from air to sea freight where lead time allows, can unlock significant savings. You should also consider reevaluating your node strategy: Where are you fulfilling from, and is it the most efficient path to the customer? In some cases, working with 3PLs or adding regional distribution partners can improve both flexibility and cost. The goal is simple: Optimise workflows so that fulfillment supports your bottom line without affecting your customer experience.<\/p>\n\n\n\n<p>\ud83d\uded2 <strong>How to do this with Salesforce:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=commerce.om_automated_order_routing.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Use route optimisation tools<\/a> to plan efficient shipping routes, reducing transit times and costs. This can help offset rising transportation expenses.<br><\/li>\n\n\n\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_reports_and_dashboards.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Create custom reports and dashboards<\/a> to monitor key fulfillment metrics, such as order processing times, shipping costs, and inventory turnover. Use these insights to identify the most impactful areas for improvement.<br><\/li>\n\n\n\n<li>Equip service agents with real-time visibility into order status, delays, and alternate fulfillment options. Offer customers options for lower-cost or delayed shipping in exchange for perks like loyalty points, or discounts.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-5-double-down-on-customer-retention-and-loyalty\">5. Double down on customer retention and loyalty<\/h2>\n\n\n\n<p>In a cost-constrained environment, your most valuable asset isn\u2019t your product \u2014 it\u2019s your existing customer base. Retaining loyal customers is far more efficient than acquiring new ones. During periods of margin compression (like those driven by tariffs), <a href=\"https:\/\/www.salesforce.com\/ap\/service\/digital-customer-engagement-platform\/customer-retention-rate\/\" target=\"_blank\" rel=\"noreferrer noopener\">customer retention<\/a> becomes an essential strategy.\u00a0<\/p>\n\n\n\n<p>But retention isn\u2019t just about having a loyalty program \u2014 it\u2019s about actively using your data to build deeper connections. <a href=\"https:\/\/www.salesforce.com\/ap\/crm\/crm-for-small-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">Segment your customers<\/a> based on purchase frequency, lifetime value, and price sensitivity. High-value, brand-loyal customers may be more accepting of price increases, especially if they receive early access, personalised perks, or rewards that reinforce the relationship. Consider exclusive offers, targeted re-engagement journeys, and meaningful incentives to keep them close. In uncertain times, customer loyalty isn\u2019t a given, it\u2019s earned through proactive engagement, transparent communication, and a deep understanding of what they value most.<\/p>\n\n\n\n<p>\ud83d\uded2 <strong>How to do this with Salesforce:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=cc.b2c_discount_on_a_product_option.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Set up automated Discount Logic<\/a> for tariff-impacted products, where you can offer targeted discounts or incentives to maintain sales volume without eroding margins.<br><\/li>\n\n\n\n<li><a href=\"https:\/\/help.salesforce.com\/s\/articleView?id=xcloud.loyaltyoverview.htm&amp;type=5\" target=\"_blank\" rel=\"noreferrer noopener\">Use loyalty tiers<\/a> and behaviour data to personalise outreach \u2014 rewarding your best customers with tailored incentives, exclusive benefits, or early access to new products.<br><\/li>\n\n\n\n<li>Leverage AI to flag customers showing early signs of disengagement, then trigger personalised reactivation journeys before it\u2019s too late.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-it-s-about-resilience-not-quick-fixes\">It\u2019s about resilience, not quick fixes<\/h2>\n\n\n\n<p>Business leaders know that long-term success depends on more than riding out volatility \u2014 it requires rethinking how pricing, sourcing, fulfillment, and customer relationships work together. Technology alone won\u2019t solve it, but when paired with smart strategy, it can accelerate execution, increase agility, and help teams focus on what matters most: Delivering value to customers.<br><br>Looking to explore how others in retail are adapting? We\u2019d love to share best practices and benchmark what\u2019s working. <\/p>\n\n\n\n<div class=\"layout-one wp-block-salesforce-blog-offer\">\n\t<div class=\"wp-block-offer__wrapper\">\n\n\t\t<div class=\"wp-block-offer__content\">\n\t\t\t<h2 class=\"wp-block-offer__title\">Does your commerce platform enable agility or slow you down?<\/h2>\n\t\t\t\t\t\t\t<p class=\"wp-block-offer__description\">The right tools will help you thrive in times of stability <em>and<\/em> uncertainty. <\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t<div class=\"wp-block-button\">\n\t\t\t\t\t<a class=\"wp-block-button__link\" target=\"_blank\" href=\"https:\/\/www.salesforce.com\/ap\/form\/contact\/contactme-commerce-cloud\/\">Get in touch with us<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t<div class=\"wp-block-offer__media\">\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<div class=\"wp-block-offer__graphics wp-block-offer__contour\"><\/div>\n\t\n\t\t\t<!-- Standard Illustration -->\n\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__illustration\" src=\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-one.png\" alt=\"\">\n\n\t\t<!-- Small Accent Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__accent\" src=\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-accent-layout-one.png\" alt=\"\">\n\t\t\n\t\t<!-- Left Side Illustration -->\n\t\t\n\t\t<!-- Cloud Illustration -->\n\t\t\t\t\t<img decoding=\"async\" class=\"wp-block-offer__graphics wp-block-offer__cloud\" src=\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-cloud-layout-one.png\" alt=\"\">\n\t\t\n\t<\/div>\n","protected":false},"excerpt":{"rendered":"<p>At a time when so much of your business is outside your control, there are ways to help cut operational costs and protect profit margins. <\/p>\n","protected":false},"author":403,"featured_media":10822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sf_justforyou_enable_alt":true,"optimizely_content_id":"85b2ed0f45174ff3a8246d3bAP","post_meta_title":"","ai_synopsis":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"sf_topic":[12,82,8,23,811],"sf_content_type":[707],"coauthors":[268],"class_list":["post-10823","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","sf_topic-commerce","sf_topic-ecommerce","sf_topic-customer-relationships","sf_topic-artificial-intelligence","sf_topic-data-activation","sf_content_type-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Let\u2019s Talk About Tariffs and How to Protect Your Profit Margins - Salesforce<\/title>\n<meta name=\"description\" content=\"In the midst of tariffs, commerce leaders are in a cloud of uncertainty. These actionable tips will help you protect profit margins.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Let\u2019s Talk About Tariffs and How to Protect Your Profit Margins\" \/>\n<meta property=\"og:description\" content=\"In the midst of tariffs, commerce leaders are in a cloud of uncertainty. These actionable tips will help you protect profit margins.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\" \/>\n<meta property=\"og:site_name\" content=\"Salesforce\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-12T08:41:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-13T09:49:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/uploads\/sites\/8\/2025\/04\/Commerce_Blog1.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"432\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Lauren Wallace\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Lauren Wallace\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\"},\"author\":[{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/#\/schema\/person\/image\/db0534fd6dee70dad2dee81357be0cdf\"}],\"headline\":\"Let\u2019s Talk About Tariffs and How to Protect Your Profit Margins\",\"datePublished\":\"2025-12-12T08:41:13+00:00\",\"dateModified\":\"2025-12-13T09:49:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\"},\"wordCount\":1599,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/uploads\/sites\/8\/2025\/04\/Commerce_Blog1.webp\",\"inLanguage\":\"en-SG\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\",\"url\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/\",\"name\":\"Let\u2019s Talk About Tariffs and How to Protect Your Profit Margins - Salesforce\",\"isPartOf\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/protect-profit-margins\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/uploads\/sites\/8\/2025\/04\/Commerce_Blog1.webp\",\"datePublished\":\"2025-12-12T08:41:13+00:00\",\"dateModified\":\"2025-12-13T09:49:07+00:00\",\"author\":{\"@id\":\"https:\/\/www.salesforce.com\/ap\/blog\/#\/schema\/person\/b28f38b76158dd0a20f0ce9786645490\"},\"description\":\"In the midst of tariffs, commerce leaders are in a cloud of uncertainty. 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