In particular, Amazon is seeking the ability to impose a tariff surcharge on ultra-ultra-discount items sold through its marketplace. The company first reported this news to CNBC on Tuesday. This proposed amendment addresses increasing input costs that are squeezing many of these third-party sellers. Consequently, many of those very sellers are increasing their prices and reducing advertising spend.
Earlier this month, Amazon kicked off advocacy to its massive third-party seller base. The goal of this communication was to assess how tariffs imposed during the Trump administration are influencing sellers’ logistics, product sourcing, and overall operations. The company’s main interest lies in how these tariffs will affect pricing strategies and overall dynamics of the market.
Sources close to Amazon’s plans have shared some very positive news. The latter may soon be reflected in the company’s display of tariff costs directly next to product prices! This change is meant to further improve customers’ visibility into tariff-related charges and deliver greater understanding of how tariffs impact the cost of goods. News of this surprising turn first broke in late August by Punchbowl News, which spoke to a source who was clearly inside Amazon’s playbook.
As the pressure from Trump’s tariffs continues to mount, some of Amazon’s sellers have already begun increasing prices for their products. This change shows that sellers are starting to experience the burden in their wallets due to increased costs of import goods. While Amazon’s proposal is still in the consideration phase and has not yet been implemented, it reflects the company’s awareness of the evolving economic landscape.
An Amazon spokesperson clarified the current status of this initiative, stating, “This was never a consideration for the main Amazon site and nothing has been implemented on any Amazon properties.” This announcement mostly serves to reaffirm that though talks continue, nothing solid has yet materialized.
The proposed surcharge has received political firestorm. Karoline Leavitt, White House press secretary, questioned why Amazon did not consider such measures when inflation surged under the Biden administration, stating, “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?”