Sellers on the platform are also struggling as the trade war escalates, resulting in potential shortages as shipping costs to the United States rise.
Import costs are on the rise due to the current administration’s tariff battle with other countries, particularly China, which is currently facing levies of up to 145%.
As a result, many Amazon sellers are raising prices on hundreds of best-selling items.
Consumers are paying more for everything from diaper bags to necklaces and other top-selling items as sellers pass on high import costs.
SmartScout, which tracked over 900 Amazon items that have increased in price since April 9, found that categories such as apparel, jewelry, homeware, office supplies, electronics, and toys have increased by an average of 29%.
The figure is “sensationalized,” an Amazon spokesperson told CNBC, noting that the study covered “a tiny fraction of items in our store.”
According to the e-commerce giant, less than 1% of the items studied saw price increases.
“We have not seen the average selling prices of products change up or down appreciably outside of typical fluctuations across the hundreds of millions of items on Amazon,” according to a statement.
“And we continue to meet or beat prices versus other retailers on the vast majority of items.”
The back-and-forth tariff battle with China is threatening sellers on Amazon’s third-party marketplace, which accounts for roughly 60% of the company’s online sales.
Many sellers are based in China or rely on the country to source and assemble their products, with Chinese sellers accounting for approximately 25% of recent price increases, according to SmartScout data.
Amazon merchants are forced to choose between raising their prices and absorbing the additional costs resulting from Trump’s tariffs.
The situation is daunting for many sellers, who already have thin margins and have faced rising costs on Amazon for storage, fulfillment, shipping, and advertising in recent years.
Increased competition has created a challenging environment for Amazon merchants.
SELLER STRESS
The rising costs associated with the new tariffs affect not only Chinese sellers, but also many US merchants.
For example, Aaron Cordovez, co-founder of Zulay Kitchen, has made a living selling kitchen appliances on Amazon for the past decade.
However, he is concerned about the future of his business because the majority of his products are manufactured in China.
Zulay Kitchen, based in Florida, is moving “as fast as we can” to expand production to India, Mexico, and other markets, Cordovez told CNBC.
While these countries are also facing increased tariffs as a result of the trade war with the United States, the rates are much lower than those on Chinese goods.
Cordovez explained that shifting the company’s manufacturing countries would most likely take a year or two to complete.
“We are making our inventory last as long as we can,” the Amazon seller explained.
Dave Dama, co-founder of the health and beauty company Pure Daily Care, expressed concerns about company inventory.
Dama stated that his company has enough inventory of certain products to last up to six months, which he intends to “extend as much as possible” in the hopes that China and the United States will reach a trade agreement.
“We can try to stretch that seven, eight, nine months, which buys us a lot more time for this thing to work out, hopefully,” he told me.
Shoppers on e-commerce platforms such as Shein and Temu will also face higher prices beginning April 25 – with prices potentially rising by 125%.
Meanwhile, Walmart and Home Depot broke their silence following Trump’s crisis talks, as customers fear high checkout prices.