Amazon Sellers to Pass Tariff Costs to Consumers
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Amazon CEO Andy Jassy anticipates third-party sellers will pass on new tariff costs to consumers due to slim profit margins. While Amazon is strategically buying inventory and renegotiating deals to mitigate price increases for customers, the impact on consumer behavior remains unclear. Jassy noted that Amazon's AWS business, having diversified its supply chain, is unaffected by the tariffs. Reports suggest Amazon cancelled some Chinese orders, and Chinese sellers face a choice between price hikes or market exit.
Amazon CEO Andy Jassy anticipates third-party sellers will pass on new tariff costs to consumers due to slim profit margins. While Amazon is strategically buying inventory and renegotiating deals to mitigate price increases for customers, the impact on consumer behavior remains unclear. Jassy noted that Amazon's AWS business, having diversified its supply chain, is unaffected by the tariffs. Reports suggest Amazon cancelled some Chinese orders, and Chinese sellers face a choice between price hikes or market exit.
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