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Amazon sellers opt out of Prime Day as Trump tariffs hammer profit margins: report

According to reports, Amazon sellers have opted out of Prime Day this year and are unable to offer sudden discounts across their online storefronts as they face uncertainty over President Trump’s tariffs.

Some merchants who make products in China are sitting at a shopping event in mid-July, as 145% of Trump have profit margins by hammering Beijing. According to a Reuters report Based on interviews with four merchants and six consultants, it advises hundreds of sellers.

“Amazon is fine, but I feel like some of the third-party sellers. They are the most hurtful in this environment,” said Reuters, an analyst at CFRA Research.

President Trump slapped China at a large tariff rate earlier this month as he announced “mutual” collections in many countries earlier this month. Reuters

An Amazon spokesperson said he saw a “strong response to Prime Day 2025 from selling partners.”

They added that prices for hundreds of millions of items on Amazon have not risen outside of typical fluctuations.

Steve Green, an Amazon vendor that sells $230 bikes and $60 skateboards made in China, said he’s skipping Prime Day for the first time since 2020.

Kim Vaccarella, chief executive of Bogg Bag, a Chinese manufacturing tote bag company, has also decided to skip discount events this year. I chose to store inventory from retailers such as Macy’s, Bloomingdale and Dick’s sports goods.

Vaccarella said it has stopped producing bags, which are on sale from $70 to $200 on Amazon, but manufacturing is about to shift to Cambodia and Vietnam.

Both countries are currently facing 10% collection from the White House as Trump has put many tough fees on a 90-day suspension to provide time for negotiations.

Bogg Bag CEO has stopped production of high-end tote bags. Amazon.com

While participating in Prime Day is an option for Amazon vendors, the e-commerce giant promotes millions of shopping holidays each year, incites merchants to sell their products to a larger audience.

According to Sundaram, participating sellers will need to offer a substantial discount during the four-day event, so Prime Day can also pinch profits.

Amazon receives a 15% commission on each unit sold and there is an additional charge if the seller wants to highlight the brand on its website. Christopher Sadowski

Amazon has yet to announce the dates for this year’s Prime Day event.

Amazon shoots a 15% commission on each unit sold, with additional charges labelled “best deals” such as $1,000. According to the consultant, the average seller will benefit from around 15% to 20% of the sale.

Advising around 30 Amazon merchants as consultant, Adam Wilkens said some of his clients “we can’t even think about Prime Day yet, as the tariff pricing adjustments have not been finalized.”

John Elder, whose client is made up of at least 100 Amazon sellers, said almost all of his clients are cutting Prime Day deals.

Michael Slate, who runs Home Goods Company Kitchenedge, usually spends the spring season preparing for Prime Day, but said that the routine is being sidetracked by customs duties.

Cooking utensil organizer sold by Kitchenedge on Amazon. Amazon.com

“Because of uncertainty, we cannot offer a 20% discount if we don’t know what product costs will be in the future,” he said.

The same applies to Rick Sliter, CEO of Medcline, Pillow Company. It sells $250 treatment pillows made in China and Vietnam on Amazon.

“Prime Day last year was easy,” Sleeter said, with the event selling seven times higher than average days. “But if tariffs continue, the discount will be thrown out the window.”

Treatment pillows sold by Medcline on Amazon. Amazon.com

According to research firm Marketplace Pulse, nearly 62% of units sold on Amazon in the fourth quarter of the previous year came from third-party sellers.

Trump’s tariffs on China are also expected to hinder Amazon’s sales with first-party partners like Hasbro Toys.

Amazon sells products from these retailers and then sells them on its own, but much of this inventory is also manufactured in China.

With post wire

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