B2B Breakthrough Podcast

Episode: Staying Profitable Amid Tariff Changes: Steven Selikoff on Navigating the End of De Minimis
Host: Sierra Christo (Alibaba.com)
Guest: Steven Selikoff, Founder of Product One
Date: September 23, 2025

Episode Overview

This episode tackles the seismic shift in international e-commerce driven by the recent suspension of the de minimis rule—the regulation that previously allowed U.S. importers to avoid tariffs and duties on goods valued under $800. Expert guest Steven Selikoff walks sellers through the fallout: how tariffs and stricter compliance are impacting costs, what new pitfalls await importers (of all sizes), and the concrete steps entrepreneurs must take to remain profitable amidst compressed margins. The discussion is packed with myth-busting, tactical advice, and real-world sourcing strategies to help small business owners thrive in this new landscape.

Key Discussion Points & Insights

1. De Minimis Suspension: Why It Matters

Timestamp: 02:04–04:09

• What Was De Minimis?

  • Allowed goods under $800 to enter the U.S. without tariffs/duties.
  • Benefited travelers, small importers, and businesses globally.

• What's Changed?

  • Threshold suspended: All imports now subject to duties and tariffs regardless of value or origin.
  • Applies to every sales channel, from e-commerce (Amazon, DTC) to physical retail.

• Why Is This a Big Deal?

  • “It’s impacting your cash flow because it's money you have to take out of your pocket when it comes across the border.” — Steven Selikoff (04:32)
  • Increased cost of goods, cash flow strain, and much stricter compliance checks.

2. Compliance Essentials and Where to Find Information

Timestamp: 05:59–07:48

• Steps Sellers Should Take:

  • Check compliance requirements for each product/category; platforms like Alibaba.com make it easier.
  • Best sources for certification requirements:
    • Selling platform listings (dummy listing on Amazon)
    • The actual factory (not trading companies)
    • Customs brokers

• Beware of crowdsourcing compliance info:

  • “Don’t be posting in Facebook groups … someone may have good intentions but not accurate information.” — Steven Selikoff (06:55)

3. Mythbusting: Managing Costs and Deductions

Timestamp: 08:10–10:11

• Biggest Misconception:

  • “People think they're just stuck. … Tariffs and duties are tax deductible.” — Steven Selikoff (08:17)
  • You deduct tariffs/duties when products are sold, not when paid.

• How to Structure Deductions:

  • Need two documents:
    1. Commercial invoice
    2. Form 7501 (official U.S. duty/tariff declaration)

• Critical Caveat:

  • If shipping DDP (Delivered Duty Paid), you cannot claim these deductions.

4. Shipping & Incoterms: DDP and Beyond

Timestamp: 10:12–13:26

• DDP as “Training Wheels”:
  • Good for beginners; supplier handles everything.
  • Once more experienced, sellers benefit switching to “other 10 incoterms” for maximum control and ability to claim deductions.

“Take the training wheels off once you're ready, and you could take advantage then of deducting your tariffs and your duties.” — Steven Selikoff (13:16)

• Hiring for Logistics:
  • As you grow, bring in logistics/shipping expertise to avoid overpaying and capture savings.

5. Product One: Sourcing, Education & Profit Focus

Timestamp: 13:58–17:53

• Product One:

  • Rebranded from Product Development Academy.
  • Focus: teaching entrepreneurs how to build profitable products—especially for physical retail, still 84% of the U.S. market.
  • Steven’s mantra: Profitability starts at the product level, not marketing or ads.

• The Watermelon Anecdote:

  • “If you’re selling out, not making money, then renting more trucks may help you sell out more. But you’re still not going to make money if your product is not profitable. No amount of advertising is going to make it profitable.” (16:54)

6. Pricing, Multipliers, and the “Purple Cow” Strategy

Timestamp: 19:04–25:27

• How to Protect Margins:

  • Differentiate your product ("be a purple cow") to create category of one—avoid commoditization and pricing wars.
  • Find your customers' willingness to pay (WTP)—this is your “north star.”

  "Find out what people are willing to pay for a purple cow ... that becomes your North Star." — Steven Selikoff (19:53)

• Target Price Calculation:

  • Use an 8x–10x multiplier: divide planned retail price by 8 or 10 to set your source/target price.
  • Don’t negotiate aimlessly; know your specific goal price based on WTP.

• Strategic Sourcing:

  • Aim for long-term, mutually beneficial relationships (“guanxi”), not one-off, cut-throat negotiations.

7. Audience Research & Finding Your Differentiator

Timestamp: 25:27–29:10

• How to Find Out What Customers Want:

  • Ask intended customers directly—don’t just scrape Amazon reviews for “obvious” flaws.
  • Avoid survivorship bias: look for what isn't being addressed, not just obvious fixes.
  • Enter niches you’re passionate and knowledgeable about.

  “You need to look at those planes that didn’t [return]; what is it that people would want that they’re not seeing?” — Steven Selikoff (28:35)

8. Top Mistakes and Priorities for Sellers

Timestamp: 29:10–30:07

• Main Mistake:
  • Not ensuring prices are set for profit, regardless of sales volume.
  • “If you’re not putting money in the bank, then take a deep breath, look in the mirror, and say what are my profits?” — Steven Selikoff (29:38)

9. Advanced Tactics: Tariffs, Bundling, and Risk Scores

Timestamp: 30:28–34:45

• HTS Code Optimization:

  • Look for legal ways to change codes; e.g., bundle products to lower tariff brackets.
  • Example: a knife alone is taxed more than a bundled flatware set.

• Bundling for Lower Tariffs:

  • Creating “kits” (e.g., camping kits vs. flashlights or shovels alone).

• Weighted Risk Scores:

  • CBP uses an algorithm to flag “risky” importers; your risk score can be impacted by your actions and your freight forwarder’s past actions.
  • High scores mean more frequent and costly inspections—choose logistics partners carefully.

10. 30-Day Action Plan (Final Checklist)

Timestamp: 35:02–36:12

1. Understand your tariff impact.
2. Adjust pricing: Communicate any increases with authenticity.
3. Audit your HTS codes: Explore legal ways to bundle or tweak for lower rates.
4. Learn about first-sale and incoterms.
5. Prioritize profit: Get an accountant, and ensure all tariffs/duties are properly deducted.

“If there’s one number one thing to do, get an accountant so you can deduct the cost of those tariffs and duties.” — Steven Selikoff (36:08)

Notable Quotes and Memorable Moments

• “It is a business—you want to treat it like a business. You want to make money, you’ve got to do the right things.” — Steven Selikoff (01:18)
• “Compliance…you absolutely do not want to start going into black hat tricks and hacks and cheats and stuff like that. …you will eventually be caught.” — Steven Selikoff (03:38)
• “Tariffs and duties are tax deductible. You can deduct them from your taxes…if you’re not doing that, you’re throwing money out the window.” — Steven Selikoff (08:17)
• “If you’re breaking even on your profit, you could go from a hundred to a hundred thousand units, and you’re still breaking even. It’s mathematically impossible for that to make you money.” — Steven Selikoff (17:30)
• “Be a purple cow. Start off by being a purple cow. … If it doesn’t meet your target price, then walk away. Find another supplier. Change your design.” — Steven Selikoff (21:12)
• “Make sure your freight forwarder is a good boy, a good girl as well, because you will be hurt by their weighted score.” — Steven Selikoff (34:36)
• “Prioritize profit. Focus on profits, not sales or revenue. Now you’ll be able to make money.” — Steven Selikoff (29:48)

Useful Timestamps

• 02:04 — What de minimis was and why it mattered
• 04:32 — Real costs and compliance reality check
• 06:25 — How to find compliance information (and pitfalls)
• 08:10 — Tariffs, duties, and tax deductions mythbusting
• 13:58 — What Product One does for entrepreneurs
• 19:32 — Purple cow, pricing multipliers, and protecting margins
• 25:27 — Audience research, survivorship bias, and true differentiation
• 30:28 — Lowering tariffs through legal HTS/bundling strategies
• 34:45 — Weighted risk score and its hidden cost
• 35:02 — 30-day actionable checklist for sellers

Conclusion

Steven Selikoff’s appearance is a masterclass on both the realities and strategies of importing post–de minimis. His blunt business wisdom, actionable checklists, and focus on profit-first principles offer sellers concrete next steps—whether they’re new or seasoned. The episode is a must-listen (or read!) for anyone navigating the new tariff landscape while trying to build resilience, differentiation, and real profit in their business.