Protecting Margins in Dropshipping: Ad Budget Controls, Duty Changes, and Fuel Surcharge Strategies

Daily Cross-Border E-Commerce Briefing | September 16, 2025

1. U.S. and China Reach TikTok Framework Deal—Cross-Border Social Commerce Outlook Improves

• U.S. and Chinese officials said they have a “framework agreement” to shift TikTok to U.S.-controlled ownership, with a confirmation call between President Trump and President Xi slated for Friday. While key terms remain undisclosed, the development reduces near-term shutdown risk for a channel with 170M+ U.S. users.
  Why it matters for dropshippers: Independent Shopify/WooCommerce sellers leaning on short-video ads and creators can continue testing TikTok for product discovery and impulse buys. Treat this as breathing room—diversify spend (Google/YouTube, Meta) and keep creative libraries/pixels ready in case policy shifts resurface.
  Source: Reuters, Published on: September 16, 2025

2. “Campaign Total Budget” Expands to Search, Performance Max & Shopping

• Google expanded Campaign Total Budget beyond YouTube/Demand Gen to Search, Performance Max and Shopping. This lets merchants allocate a fixed amount over a date range while Google paces spend for expected traffic—ideal for limited-time drops, seasonal SKUs and influencer collaborations.
  Action for dropshippers: Use total budgets for weekend flash sales or micro-launches, then layer a ROAS target. It limits overspend while still capturing surges when an item trends on short-video platforms.
  Source: PPC News Feed, Published on: September 15, 2025

3. FedEx Updates Weekly Fuel Surcharges for Sept. 15–21 (Ground 20.5%, Export 24.5%, Import 28.25%)

• FedEx’s weekly table shows Ground/Home Delivery at 20.50% and international package surcharges at 24.50% (export) and 28.25% (import) for the week of Sept. 15–21, based on EIA diesel/jet fuel indices. Expect carriers to keep indexing weekly as fuel markets stay volatile.
  Action for dropshippers: Recalculate landed cost and free-shipping thresholds. For U.S. buyers, consider tiered shipping (e.g., free > $75) or “economy” options to protect margins without killing conversion.
  Source: FedEx, Published on: September 15, 2025

4. UPS Fuel Surcharges: Tables Show Sept. 15 Weekly Updates (Region Pages Reflect New Percentages)

• UPS regional fuel-surcharge tables list new effective rates dated Sept. 15 (e.g., recent weekly figures for air services around ~31% on some pages), with updates reflecting EIA fuel benchmarks. These tables change frequently and can differ by service and origin/destination.
  Action for dropshippers: If you quote live shipping at checkout, sync rates weekly. If you bake shipping into price, monitor UPS tables to avoid eroding contribution margin on heavier parcels.
  Source: UPS, Published on: September 15, 2025

5. Maersk to Revise Terminal Handling (DHC) for World→U.S./Canada (Effective Oct. 15)

• Maersk announced new Destination Terminal Handling (DHC) levels for shipments to the U.S. and Canada, published Sept. 15 with effective date Oct. 15. Example lanes show DHC of $755 (20’ DRY) and $855 (40’ DRY/HC) into U.S. ports. Higher destination charges can flow into end-customer shipping costs.
  Action for dropshippers: If your supplier quotes DDP or door delivery, confirm whether DHC adjustments are passed through. Build a small buffer into product pricing for North America-bound orders.
  Source: Maersk, Published on: September 15, 2025

6. Oil Settles Higher on Supply Risk—Watch Freight & Last-Mile Cost Curves

• Crude rose after attacks on Russian energy facilities and broader geopolitical pressure on Russian oil buyers; Brent settled at $67.44 and WTI at $63.30 on Monday. Fuel inputs feed directly into air/ocean surcharges and domestic delivery costs, keeping shipping budgets tight into Q4.
  Action for dropshippers: Keep “elastic” shipping rules (free shipping threshold, economy transit) and prioritize compact SKUs with lower dimensional weight to withstand fuel-linked surcharges.
  Source: Reuters, Published on: September 16, 2025

7. Tariff Pass-Through: Swatch Confirms U.S. Price Hikes of 5–15%

• Following a new 39% U.S. tariff on Swiss imports, Swatch’s CEO said U.S. prices will rise 5–15%, citing the need to offset higher costs. Even premium brands are moving quickly to protect margins—evidence that tariff costs can cascade to consumers within weeks.
  Action for dropshippers: If your niche includes tariff-sensitive categories, run a price-sensitivity test now (e.g., A/B $39 vs. $42) and communicate value (quality, warranty, support) rather than discounting blindly.
  Source: Reuters, Published on: September 15, 2025