Larry Wu, CEO, GigaCloud
As tariff tensions re-emerge on the global stage, GigaCloud Technology is leaning into a strategy it started executing years ago, one that CEO Larry Wu says is now proving essential.
Speaking with Digital Commerce 360, Wu outlined how the B2B marketplace is navigating the current tariff environment through strategic sourcing shifts, technology investment, and operational flexibility.
“Tariffs are not a new challenge for us,” Wu told Digital Commerce 360. “We’ve been managing around them for some time. Our approach to risk is baked into how we operate — this is not reactive. This is something we’ve planned for.”
How GigaCloud proactively tackles tariff tensions
GigaCloud facilitates cross-border trade for large-parcel goods like furniture and exercise equipment. It has drastically reshaped its supply chain to reduce its dependence on China.
“Today, more than 50% of our first-party supply chain supporting the U.S. market comes from Southeast Asia,” Wu noted. “That’s a significant change from a few years ago, when China accounted for the majority. We’ve built capacity in Vietnam, and Malaysia, and it’s made our platform more resilient.”
But diversification doesn’t stop there.
“We’ve recently onboarded suppliers from Colombia, Mexico, and Turkey,” Wu added. “That helps us hedge against regional risk and shorten delivery windows for certain markets. We’re building a global network, and the goal is to ensure that no single regulatory or geopolitical event can knock us off course.”
How the tariff landscape compares to COVID-19
Wu drew a direct comparison between the current tariff uncertainty and the operational chaos caused by the COVID-19 pandemic.
“During COVID, you had port shutdowns, container shortages, massive disruptions,” he said. “Tariffs are different — they’re more of a regulatory and cost issue — but the result is the same: friction in the system. We learned during COVID that we must move fast, have backup plans, and control what we can control. That thinking is guiding our response to tariffs today.”
When asked about how this experience compares to the 2020–2022 period, Wu said it’s about agility.
“Whether it’s a virus or a trade war, the answer is the same: Build a more diversified and flexible supply chain. Don’t wait for the shock to hit — plan around it.”
One of GigaCloud’s built-in advantages is its supplier-fulfilled retail (SFR) model. It allows sellers to ship directly to end customers without going through centralized inventory hubs.
GigaCloud maintains growth amid tough macroeconomic environment
“If tariffs make sourcing from China cost-prohibitive, we can pivot quickly,” Wu explained. “We’re not stuck with container loads of overpriced inventory. That flexibility is a big reason we’ve been able to keep service levels high even in volatile conditions.”
Despite a complex macroeconomic environment, GigaCloud has continued to grow at a rapid pace. On an annual basis, total GigaCloud revenue reached $1.16 billion, reflecting a 65% increase from 2023.
“We’re not just surviving tariffs — we’re growing through them,” Wu said. “That growth is a result of our planning, our platform model, and our ability to bring global sellers into the system faster and more efficiently than traditional distributors can.”
Wu said the marketplace’s AI capabilities also play a role.
“AI allows us to optimize everything from freight to product insights to pricing,” he said. “That’s especially important when tariffs are in flux. You need real-time tools to make smart sourcing and pricing decisions.”
What’s next for GigaCloud?
In response to a question about what’s next, Wu previewed several initiatives aimed at scaling the platform further in Q2 and Q3 of 2025.
“We’re investing in tools that help sellers onboard faster and transact more efficiently,” he said. “That includes AI for product classification, predictive logistics, and tools to automate pricing and delivery quotes.”
Wu also emphasized the need to continuously upgrade the customer and seller experience.
“We think of ourselves not just as a marketplace, but as a tech company that enables global trade,” he said. “Tariffs are just one piece of the equation. We’re focused on building the platform that will power international commerce for the next decade.”
Despite the challenges, Wu remains upbeat.
“What gives me confidence is the mission,” he said. “We’re connecting small and medium businesses around the world and helping them reach markets they couldn’t access before. Tariffs can slow things down, but they can’t stop the kind of transformation we’re enabling.”
As the briefing concluded, Wu summed up GigaCloud’s approach with clarity.
“We can’t control tariffs, but we can control how we respond,” Wu said. “We’re going to keep building a business that thrives in complexity — and helps our customers do the same.”
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