Issue 8 : Big changes to Section 321, forgetting this for BFCM? And, warehouse bathrooms

Section 321, which allows companies to import goods valued at less than $800 to the U.S. and avoid certain tariffs, has been a hot topic in 2024. Chinese companies like Temu and SHEIN have used it to import cheap goods and sell directly to U.S. consumers who are willing to wait weeks to save, and some 3PLs advertise the ability to use locations in Mexico and Canada to allow ecomm brands to do the same.

Last week, U.S. lawmakers announced imminent changes, particularly to textiles and apparel being imported directly from China. It’s a clear shot across the bow at Temu and SHEIN, and changes are coming this year. 

Industry voices are already calling a win for brands feeling the pressure of competing with ultra-low-cost Chinese competitors. But, questions remain—notably, how long will brands be able to use Section 321 to reduce tariffs by importing from Canada or Mexico to the customer?

GO DEEPER: Matt Hertz did a great writeup of what we know, and what might be coming, in his Sent Items newsletter this weekend.

I’ve seen about 327 tweets, emails, webinars focused on getting my brand ready for Black Friday and the holiday shopping season. Precisely zero focused on fulfillment considerations. So, I sat down with our Chief Client Officer (and Red Stag’s liaison to UPS, Fedex, and USPS) to talk about what brands should expect.
 
Tony’s top takeaway? The election + a late Thanksgiving will compress consumers’ holiday shopping into a tight window. Carriers are introducing new surcharges that will make shipping during this window even more expensive for brands.
 
So, what can you do? 

GO DEEPER: Read my full interview with Tony here. 

Matt’s point? The little things matter. 
 
So, as one does in this situation, we shared a picture of one of our warehouse bathrooms:

GO DEEPER: Check out the comments section for more bathroom banter.  

Thanks for reading, and see you in 2 weeks.

-Paul