Many Amazon sellers are facing serious problems due to the ongoing trade war, especially with China. With the cost of bringing goods into the US rising fast, sellers are left with two choices — raise their prices or lose money.
Tariff War Puts Pressure on Sellers and Shoppers
The US government has raised import taxes on goods from several countries, with China facing some of the highest rates — up to 145%. Because of this, sellers on Amazon are now increasing prices on many popular items.
This means shoppers are now paying more for things like diaper bags, jewelry, homeware, toys, electronics, and office supplies. According to SmartScout, which studied 900 popular Amazon items, prices have gone up by an average of 29% since April 9.
Amazon, however, says the study only looked at a very small part of their entire store. A spokesperson told CNBC that the price changes were not that big overall and were still within normal ups and downs. They also said Amazon still offers better prices than most other stores for many products.
China-Based Sellers and US Sellers Both Affected
Amazon’s third-party marketplace — where independent sellers list their products — makes up around 60% of Amazon’s total online sales. Many of these sellers are either based in China or get their products made there. In fact, 25% of the recent price increases tracked by SmartScout came from sellers connected to China.
These sellers are now struggling to keep their prices competitive while dealing with high shipping and import costs. Many sellers were already dealing with other rising costs like storage fees, delivery charges, and ad costs on Amazon. Now, the added tariffs are making it even harder for them to survive.
US-Based Sellers Also Feeling the Heat
It’s not just Chinese sellers who are worried. Many US-based sellers are also dealing with stress because their products are made in China too. One such seller is Aaron Cordovez, who runs Zulay Kitchen. His company has been selling kitchen tools on Amazon for 10 years.
He said his company is now rushing to move its manufacturing to other countries like India and Mexico, where tariffs are lower. But shifting production takes time — at least one to two years, he said.
For now, his company is trying to make its current stock last as long as possible.
Another seller, Dave Dama from the health and beauty brand Pure Daily Care, also shared his concerns. He said they have enough inventory to last around six months, maybe a bit more if they stretch it. He’s hoping the US and China can reach a trade deal soon, so the pressure eases.
The US-China trade war is not only affecting big companies — it’s hitting small and mid-size Amazon sellers hard. Many are trying to deal with rising import costs by either raising prices or changing where they make their products. Customers are now feeling the impact too, as prices on Amazon are increasing for many popular items. Unless a trade deal is reached, this could continue to affect both sellers and shoppers for a long time.