Rathna Sharad, CEO of FlavorCloud, the cross-border, AI-powered platform, said when calculating actual and final landed costs in the current global trade war market, it all comes down to country of origin. Take the same product, but different origin and there will be a different tariff bill.
“As retailers go into peak season and supply chain and logistics networks brace for it as well—it’s the country of origin that determines a final consumer cost or whether a retailer can make margin on an item that’s sourced in one place, manufactured in another, held in yet another and sold in yet another,” Sharad told Sourcing Journal.
Here, Shara shares insights into the challenges facing retailers and brands in managing trade disruptions and market challenges and explains how to mitigate the impact.
Sourcing Journal: When it comes to sourcing and pricing, what are the challenges retailers and brands face amid tariffs and other disruptions?
Rathna Sharad: The biggest challenge is making sourcing decisions months ahead while the economics can change before the product reaches the customer. Tariffs, freight costs, currency movements and customs requirements all affect profitability. A lower factory price does not necessarily translate into a lower landed cost.
Brands also face a difficult pricing decision. How much of that added cost can they absorb, and how much can they pass on to the customer without losing the sale? The answer varies by product and market. A blanket price increase can protect margin on paper while making a brand less competitive with local alternatives.
Through a commerce intelligence lens, sourcing and pricing are connected decisions. Brands need to understand what a product costs to deliver, where demand exists, and what customers in each market are willing to pay. Without that connection, they risk buying inventory that becomes difficult to sell profitably.
SJ: How can they mitigate these issues?
R.S.: Start by evaluating sourcing options against the full economics of the sale. That means looking beyond the purchase price to duties, taxes, transportation, delivery time and the cost of potential disruption. Diversifying suppliers can help, but each alternative needs to be assessed for its actual cost and operational implications.
Brands should also model different scenarios before committing inventory or changing prices. What happens to the margin if costs rise? How much flexibility exists in pricing? Which markets offer the strongest demand relative to the cost of serving them?
The next step is replacing a single global pricing approach with market-specific decisions. Some markets may support a price increase; others may require a different product mix or delivery option. Clear, all-in pricing also helps shoppers make an informed purchase.
Commerce intelligence brings those signals together so teams can respond as conditions change. AI is useful when it turns complex data into actionable decisions, with people setting the strategy and margin guardrails.
SJ: How can FlavorCloud help?
R.S.: FlavorCloud connects the operational requirements of cross-border commerce with the intelligence a brand needs to grow. Our platform supports product classification, duties and taxes, customs compliance and carrier routing. Guaranteed delivered duty paid shipping gives customers visibility into the landed cost at checkout and helps eliminate unexpected charges at delivery.
Our commerce intelligence layer helps brands make better commercial decisions. Pricing intelligence combines landed costs, competitive pricing, market signals and a brand’s own performance data to recommend prices by product and market, within the brand’s chosen margin guardrails. Market intelligence helps identify international growth opportunities.
That connection matters because understanding an opportunity is only part of the job. Brands also need to price it appropriately and deliver on the customer promise.
SJ: How would you describe the overall value proposition of your solution?
R.S.: FlavorCloud helps brands turn international demand into profitable revenue.
