Challenges Facing Atsaq Art eCommerce in a Competitive Market

Navigating Changes in the eCommerce Landscape

Atsaq Art eCommerce, along with over 80,518 other online businesses, has partnered with Printful Inc. in the United States. However, many of these businesses face significant challenges. These challenges could compel some to make drastic adjustments to survive or even shut down. Each of these businesses employs numerous individuals and plays a vital role in their communities.

At Atsaq Art, we consistently collaborate with a top-tier printer located in North Carolina. This partnership ensures exceptional quality and affordability with every product we offer. In Alaska, our prices are competitive, often matching or exceeding those of the Alaska Commercial Company's apparel and accessories.

Worker makes preparations at Printful, Inc.

Maintaining Profitability in Tough Times

Atsaq Art operates on a low profit margin, typically ranging between 30% and 37% on each product cost. To navigate the upcoming changes in the market, we must adapt our strategies. This adaptation is essential to minimize potential losses and maintain our operations. As a true micro-Yup'ik business, our commitment extends beyond profit. We also contribute to our community by paying both local Bethel taxes and federal taxes.

Impact of New Trade Tariffs

As of March 4, the US government has imposed new trade tariffs that add to our challenges.

• Goods from Mexico and Canada: Tariffs are broadly set at 25%.

• Goods from China: These tariffs have increased from 10% to 20%.

  
  

These changes affect our cost structure significantly. Apparel and accessory templates, along with blank clothing materials, are essential components of our production process. These products are made and completed by our supplier and other businesses located in the United States.

The Role of Printful in Our Success

We rely heavily on blank materials sourced from different countries to produce our clothing and accessories in the United States. Our supplier, Printful, Inc., collaborates with small, mom-and-pop-style printers near customers to fulfill orders efficiently. This system is carefully designed to maximize cost savings, which we aim to pass on to our customers.

American workers at Printful, Inc. 2021

At Atsaq Art, we proudly operate with a dedicated two-person design team in Bethel. We stand as the first of our kind in the Southwestern region of Alaska. Despite our modest size, we are honored to support local organizations through invaluable donations and to present artwork awards in 3-D and other unique accessories. Caroline Oscar, my daughter, generously lends her time and talent whenever possible. When not helping with challenges at Atsaq Art, she works at the local Qavararvik Hostel for the Bethel hospital.

Our Commitment to Innovation

We remain steadfast in our commitment to delivering innovative contemporary art and apparel. Our focus is on creating products that resonate with our community while maintaining high standards of quality.

We encourage you to visit www.atsaq.art before potential price changes take effect. Quyana for your unwavering support and for valuing the exceptional quality we strive to provide, one product at a time.

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Understanding Printful, Inc.

Printful, Inc. is an innovative on-demand printing company that ships custom products to online businesses.

• They work with suppliers who share their values, emphasizing sustainability, quality, and longevity.

• Printful ships from fulfillment centers in close proximity to customers, including in the United States, Canada, Mexico, Spain, and Latvia.

• They have partner facilities in other countries as well, such as Japan, Brazil, and Australia.

• Printful employs the Direct to Garment (DTG) method of printing, allowing them to create photo-quality prints without order minimums.

• To streamline logistics, they partner with major ecommerce logistics companies like USPS, UPS, FedEx, DHL, Canada Post, Australia Post, and Royal Mail.