Introduction
Sreenath Reddy:
Welcome back to the Intentwise Connect podcast! I’m your host, Sreenath Reddy. Today, I’m excited to talk with Martin Heubel, founder of Consulterce and an expert in Amazon Vendor operations, about how brands can plan effectively for peak season in 2025, especially with new tariffs shaking up the landscape.
Martin Heubel:
Thanks for having me back, Sreenath. Thrilled to dive into this important topic.
Understanding Tariff Impacts on Brands
Sreenath:
Martin, let’s start with the big picture—what have tariffs done to brands this year?
Martin:
Tariffs have directly increased costs for brands relying on overseas manufacturing, impacting inventory planning and cash flow. Consumer sentiment is also shifting toward value-conscious purchasing, which makes timing inventory and promotions critical.
Rethinking Supply Chain Sourcing
Sreenath:
What are brands doing to adapt their supply chains?
Martin:
Many are diversifying manufacturing away from China to countries like India, Vietnam, or Indonesia. Others are negotiating better payment terms or exploring domestic production. The goal is reducing dependency on a single country to avoid sudden margin hits.
Timing Inventory Orders Before Peak Season
Sreenath:
How does timing play into this?
Martin:
Brands must understand when pre-tariff inventory will run out—typically by July or August—and plan accordingly. Some should wait for clarity on trade deals; others should place orders now if they have cash reserves and want to secure stock before costs rise.
Negotiating with Retailers and Manufacturers
Sreenath:
How should brands approach negotiations?
Martin:
Don’t just focus on raising prices with retailers. Brands should also negotiate better payment terms with manufacturers and look for opportunities to consolidate shipments, which can reduce costs and improve cash flow.
The Role of Competitor Monitoring
Sreenath:
What about keeping an eye on the competition?
Martin:
Tracking competitor pricing and promotion behavior is key. Brands should watch average selling prices and deal activity before and during events like Prime Day to know when to defend share or seize opportunities.
Smart Advertising During Uncertainty
Sreenath:
How should brands think about retail media spend now?
Martin:
Pulling back on advertising in uncertain times often leads to lost market share. Instead, brands should audit spend carefully, double down where products are profitable, and invest strategically in key SKUs.
Granular, SKU-Level Profitability
Sreenath:
You always emphasize going micro—why is that?
Martin:
Brands need to analyze product-level margins and make decisions at the SKU level, not just the account level. Understanding which products are heroes, which can consolidate traffic, and where to cut spend is essential for maintaining profitability during volatile times.
Closing
Sreenath:
Martin, this has been fantastic. Thanks for sharing your insights on planning for peak season amid tariffs.
Martin:
Thank you, Sreenath. Always a pleasure.