Filenews 27 April 2025
Companies selling through Amazon have started raising prices on a variety of products, from bags to diapers and fridge magnets, household electrical appliances and other bestsellers, as they face rising import costs.
E-commerce software company SmartScout tracked 930 products on Amazon in which prices have increased since April 9, with an average increase of 29% in categories such as clothing, jewellery, household items, office supplies, electronics and toys.
However, an Amazon spokesperson called the claim "striking" and claimed that the investigation covers "a small portion of the items available in our store." Amazon said less than 1% of its items had price increases.
"We have not seen average product selling prices change noticeably upwards or downwards, beyond the typical fluctuations in hundreds of millions of items on Amazon," the company's statement said. "And we have the same or better prices than all the other retail companies for the vast majority of items."
But Trump's U.S. trade war with China poses a major threat to Amazon-based businesses, which account for about 60 percent of the company's online sales. Many of these companies are either based in China or rely on it to source and assemble their products.
Amazon sellers are now faced with the dilemma of either raising their prices or absorbing the extra costs resulting from Donald Trump's new tariffs. The cost increases brought about by the tariffs pose an existential threat to many sellers, who have very limited profit margins and, in recent years, have been burdened by the increased costs for storage, shipping and advertising fees imposed on them by Amazon, along with price pressures from increased competition.
Amazon's stock price has lost a 15% so far this year, falling alongside the broader market. The company announces its first quarter results next week.
Products imported from China now face 145 percent import tariffs, although Trump said on Wednesday that his administration was "in talks" with China with a view to a possible tariff-reduction deal. Chinese officials, however, denied on Thursday that trade talks were taking place.
About 25 percent of the price increases seen by SmartScout were initiated by China-based vendors, said Scott Needham, the company's CEO. Last week, stainless steel jewellery maker Ursteel raised prices on four of its products by $6.50, while clothing brand Chouyatou raised the price of some of its dresses by $2. Both companies are based in Zhejiang Province, China.
Anker, a Chinese electronics brand and one of Amazon's biggest sellers, raised prices on a fifth of its products sold in the U.S., including a portable power bank, which rose to $135 from $110, according to SmartScout data.
Representatives for Anker, Ursteel and Chouyatou did not respond to requests for comment.
Florida-based Zulay, which sells home electrical appliances, is also one of many U.S.-based sellers raising prices. The company is also cutting costs as it laid off 19 percent of its workforce and cut spending on online advertising by 85 percent.
Illinois-based Desert Cactus is also taking action, seeking to move production of some of its college-themed brand merchandise from China to Mexico, India, and Vietnam. About half of Desert Cactus' products come from China, while the rest are made in the USA.
Finally, Dave Damas, co-founder of the health and beauty business Pure Daily Care, said the price for one of his skincare products in China has risen to $25 from $10. Most Amazon sellers have no choice but to raise prices, he said.
"If you sell something for $40 and you make a profit of $7 or $8, with these tariffs, you can't do it anymore," Checker said. It's unsustainable."
Pure Daily Care plans to scale price increases over several weeks and only on products that are "absolutely necessary" to prevent Amazon's algorithms from ranking it lower in search results.
With information from CNBC
