Amazon sellers shift strategy as Trump tariffs bite
Amazon sellers who have relied on goods imported from China are raising prices following the imposition of tariffs on products from there, reports CNBC. Some companies exporting to the US are relocating their factories from China to countries such as India, Mexico, and Vietnam.
Sellers on Amazon are increasing prices on hundreds of popular products that were previously imported from China. This price hike is a result of 145% tariffs imposed by Donald Trump on imports from that region. CNBC reports, citing data from the company SmartScout, that approximately 25% of the price increases on Amazon in recent weeks have been due to sellers based in China.
Amazon. Sellers increase prices due to Trump's tariffs
Aaron Cordovez, co-founder of Zulay Kitchen, has been selling kitchenware on Amazon for a decade. Now, due to tariffs on Chinese products, the company is shifting production to India and Mexico. "We're making our inventory last as long as we can," Cordovez wrote to CNBC. For example, a kitchen strainer has increased in price from $9.99 to $12.99.
The SmartScout platform tracked the prices of 930 products on Amazon for various uses, reporting that prices soared by 29% since April 9. These increases apply to various categories, from clothing to electronics. "The tariffs cannot remain at this level," said Joe Stefani from Desert Cactus, who is also moving production of some products (leashes, flags, and themed gadgets) from China to Mexico and India.
Anker, a Chinese electronics brand and one of the largest sellers on Amazon, has increased the prices of 20% of its products. CNBC reports that a power bank's price rose from $110 to $135. At the skincare products company Pure Daily Care, production costs increased from $10 to $25 due to tariffs. "If you were selling something for $40 and earning $7 or $8, those days are over," stated a representative.
Amazon, despite these challenges, is striving to maintain low prices for customers across the entire platform. The head of the platform, Andy Jassy, told CNBC that the company will renegotiate terms with suppliers, but some sellers will still need to pass the tariff costs onto consumers.
