Amazon sellers hike prices as tariffs hit imported goods
Sellers on the Amazon platform who have relied on goods imported from China are now raising prices following the introduction of tariffs on products from there, CNBC reports. Some companies exporting to the U.S. are relocating their factories from China to countries such as India, Mexico, and Vietnam.
Amazon sellers are increasing the prices of hundreds of popular products previously imported from China. This is due to the 145% tariffs imposed by Donald Trump on imports from that country. CNBC, citing data from SmartScout, reports that about 25% of the recent price increases on Amazon came from sellers based in China.
Amazon sellers raise prices due to Trump tariffs
Aaron Cordovez, co-founder of Zulay Kitchen, has been selling kitchenware on Amazon for a decade. Now, because of the tariffs on Chinese goods, 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 has risen from $9.99 to $12.99.
SmartScout tracked the prices of 930 Amazon products across various categories. They reported that prices have surged by 29% since April 9. The increases affect categories ranging from clothing to electronics. "Tariffs cannot remain at this level," said Joe Stefani of Desert Cactus, who is also relocating the production of some of his products—such as lanyards, flags, and themed gadgets—from China to Mexico and India.
Anker, a Chinese electronics brand and one of the largest sellers on Amazon, has raised the prices of 20% of its products. CNBC reports that the price of a power bank increased from $110 to $135. At skincare company Pure Daily Care, the cost of production due to tariffs rose from $10 to $25. "If you sold something for $40 and made $7 or $8, those days are over," a representative stated.
Despite these challenges, Amazon is striving to keep prices low for consumers across the platform. Amazon head Andy Jassy told CNBC that the company plans to renegotiate terms with suppliers, but some sellers may still need to pass the cost of tariffs onto consumers.
