Amazon Prices Are About To Spike: These Items Should Be In Your Shopping Cart Now
Within the past couple of days, the situation with the U.S. imposing tariffs on a whole bunch of countries — and absorbing a few sharp retaliatory measures — has shifted dramatically. A 90-day pause was unexpectedly put in place, while the net import tax on Chinese goods was raised to 125% for not backing down. In the meantime, the prospects for an average shopper looking to shop bargains on platforms such as Shein and Temu have only worsened.
It now seems Amazon is the next big e-commerce giant to feel the pinch, and once again, it will be customers who will bear the brunt of it. Chinese sellers hawking their goods on Amazon are preparing to raise the price of their goods, while a few have simply decided to abandon ship. In the latter case, their position will likely be filled by those who are less affected by the tariffs, or who simply offer the same products at a higher asking price on Amazon. In either case, your final cart value is going up.
Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association that represents China's bigger e-commerce body, told Reuters that many businesses are currently planning a price hike or make an exit. "This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," Xin was quoted as saying. At least five China-based Amazon sellers confirmed similar plans. The scale of impact is going to be massive, because more than half of Amazon sellers are registered in China. The hike in sticker price is going to be felt across the board.
Which products are the worst hit?
The incoming wave of pricier goods has been confirmed by none other than Amazon CEO, Andy Jassy, in an interview with CNBC. "I think they'll try and pass the cost on," Jassy told the outlet about the incoming change, where sellers hit by the tariffs will simply transfer the extra margin worth up to 50% to buyers' wallets. Due to the higher tariffs, Amazon has reportedly begun canceling orders from Chinese businesses covering products such as home appliances and kitchen accessories. That means inventory is going to dry up soon, which risks price gouging and replacement by products that are more expensive on Amazon's platform.
According to Bloomberg, the list of orders sourced from tariff-hit Asian countries that have now been canceled by Amazon includes products such as scooters, air conditioners, and chairs. As per OwlSourcing, which helps brands link up with sellers in China's wholesale market, the most popular categories of Chinese-origin products sold on Amazon include electronics, apparel, beauty and personal care, kitchen items, toys, sports accessories, computing items, tools, and fitness gear.
Amazon also agrees that these are high-demand products. The likes of Harbor Freight, which are reliant extensively on China for their wide portfolio of power tools, are staring at a price hike. A China-based business, whose Amazon portfolio includes bags and speakers, told Reuters that they are raising the price by up to 30% on its goods. Another seller said they are looking at up to 50% higher asking prices for toys targeted at children.