Amazon sellers adjust prices as Trump tariffs take toll
Sellers on the Amazon platform, who have thus far relied on goods imported from China, are raising prices following the introduction of tariffs on products from that country, CNBC reports. Some companies exporting to the USA are relocating their factories from China to countries such as India, Mexico, and Vietnam.
Sellers on Amazon are increasing the prices of hundreds of the most popular products, which were previously imported from China. This is due to the 145% tariffs imposed by Donald Trump on imports from there. CNBC reports, citing data from the company SmartScout, that around 25% of price increases on Amazon in recent weeks originated from sellers based in China.
Amazon sellers raise prices due to trump's tariffs
Aaron Cordovez, co-founder of Zulay Kitchen, has been selling kitchen equipment on Amazon for a decade. Now, due to tariffs on Chinese products, the company is moving production to India and Mexico. "We're making our inventory last as long as we can," Cordovez wrote to CNBC. For instance, the price of a kitchen strainer increased from $9.99 (£7.5) to $12.99 (£9,76).
The SmartScout platform tracked the prices of 930 diverse Amazon products and reported that, since 9 April, rates have soared by 29%. The increases affect various categories, from clothing to electronics. "Tariffs cannot remain at this level," said Joe Stefani from Desert Cactus, who is also relocating the production of some of his 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, raised the prices of 20% of its products. CNBC reports that a power bank increased in price from $110 (£83) to $135 (£101). At Pure Daily Care, a company specialising in skincare products, production costs rose from $10 (£7.5) to $25 (£19) due to tariffs. "If you were selling something for $40 (£30) and making $7 (£5,26) or $8 (£6), those days are over," a representative stated.
Despite the challenges, Amazon is striving to maintain low prices for customers across the entire platform. The platform's head, Andy Jassy, told CNBC that the company would renegotiate terms with suppliers, although some sellers will still need to pass the tariff costs onto consumers.
