Ssense to Launch U.S. Fulfillment Center to Mitigate Tariff Costs
AI-generated image · Bay Street Wire
The luxury e-commerce platform is decoupling its logistics from its Canadian headquarters to protect its largest market from trade volatility.
Ssense is planning to open a large fulfillment center in the Northeastern United States early next year to reduce the impact of U.S. tariff policies on its largest customer base, BetaKit reports via The New York Times.
The move comes as Ssense attempts to recover from insolvency proceedings last year. According to BetaKit, the company's co-founders—Rami Atallah, Bassel Atallah, and Firas Atallah—bought the brand back earlier this year after a restructuring plan prevented a sale by lenders. To maintain viability, the company also cut over 200 jobs.
A third-party logistics firm will operate the new U.S. facility, importing global goods for domestic delivery. Ssense will maintain its headquarters and a fulfillment center in Montréal to serve non-U.S. customers.
BetaKit notes that the primary driver for this shift was the Trump administration's removal of the de minimis exception, which previously waived duties on imports valued under $800. To illustrate the cost difference, BetaKit provides a hypothetical example: a $990 cardigan shipped from Canada currently incurs $97 in duties; however, importing that same item to a U.S. warehouse at a wholesale price of $300 would reduce the tariff to approximately $30.
This strategic shift occurs amid escalating trade tensions. BetaKit reports that the U.S. recently enacted 50 percent tariffs on various goods after Canada exited trade negotiations, prompting the Canadian government to create an aid package. While Trump has urged Canadian companies to move their headquarters to the U.S., Ssense is opting to move only its logistics operations.