Amazon Customers Get Bad News Amid Tariffs
Industries across the United States are grappling with the sweeping import tariffs enacted by the Donald Trump administration this month. And it sounds like even the world's largest retailer has been impacted, and it sounds like Amazon customers will likely be feeling it in their pocketbooks.
While tariffs have increased for many countries around the world, the tariffs placed on China have been particularly severe, with the Trump administration placing a 145% tariff on imports from China. Given China's importance to global manufacturing, this has obviously had an impact on prices from Amazon sellers.
This week, CNBC reported that Amazon sellers are raising prices "for everything from diaper bags and refrigerator magnets to charm necklaces and other top-selling items" as a result of the tariffs.
According to the report, the E-commerce software company SmartScout tracked 930 different products on Amazon that have seen increased prices since April 9. The company observed an average price hike of 29% in different categories, including clothing, jewelry, household items, office supplies, electronics, and toys.
Dave Dama, co-founder of health and beauty business Pure Daily Care, has seen his company impacted by the tariffs, and it will undoubtedly have to raise prices as a result.
Dama told CNBC that the price to manufacture one of his skin-care products in China jumped from $10 to $25. Dama called this "unsustainable" and said that Pure Daily and other companies will have to raise prices as a result.
“If you were selling something for $40 and making a $7 or $8 profit at the end of the day, with these tariffs, those days are gone,” Dama said. “You can’t do that anymore. It’s unsustainable.”
Zulay Kitchen is another company that is increasing its prices in response to the tariffs. For example, the company's kitchen strainer now costs $12.99, which is up $3 from $9.99 before the tariffs.
Desert Cactus, a company based in Illinois, has also been impacted by the tariffs and will look to raise prices in the future, as well.
“The tariffs can’t stay this high,” Stefani said. “There’s so many people that just aren’t going to make it.”
It seems that consumers are going to start seeing prices increase as a result of the tariffs.