While most discussions on trade and tariffs center around manufacturing and merchandise, software and service providers can be just as vulnerable.
According to analysts, e-commerce software vendors and platforms such as Shopify Inc. SHOP, Bigcommerce Holdings Inc. BIGC, and Lightspeed Commerce Inc. LSPD are now the ‘most exposed’ due to recent events.
What Happened: On Wednesday, President Donald Trump closed the De Minimis exemption for China and Hong Kong, which allowed low-value imports worth less than $800 to enter the United States duty-free.
This order is set to go into effect on May 2, 2025, with the President blaming deceptive practices used by Chinese shipping companies, along with the rise of fentanyl coming from China, for the decision.
According to analysts at Bank of America BAC, this is a major setback for e-commerce platforms such as Shopify and Bigcommerce. Duties imposed on the merchandise flowing through their platforms will certainly impact volumes, affecting their revenue models, as reported by Investing.com
The analysts stated that with intensifying competition in the e-commerce space, passing the higher costs to consumers is no longer an option. On the other hand, enterprise software firms are better insulated from this impact, given their focus on domestic clients, and less reliance on global trade.
Why It Matters: Every day, 4 million de minimis shipments from China are processed by the U.S. Customs and Border Protection before being allowed into the country duty-free. Now, they will be charged either 30% of their value, or $25 per item, going up to $50 per item on June 1st, according to the White House fact sheet.
| Company | Yesterday | Year-To-Date | 52-Week High / Low |
| Shopify SHOP | -18.24% | -23.47% | $48.56 – $129.38 |
| Bigcommerce Holdings (NASDAQ:BIGC) | -5.17% | -9.39% | $5.12 – $8.56 |
| Lightspeed Commerce LSPD | -10.94% | -48.96% | $11.54 – $26.60 |
According to Benzinga Edge Stock Rankings, Shopify still looks favorable in the long run, but how does it compare with Bigcommerce and Lightspeed? Sign up for Benzinga Edge to find out!
Image via Shutterstock
Read More:
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
