Amazon CEO may have just proved retailers worst nightmare on Trump Tariffs, "Retailers who aren’t buying directly from China..."

Amazon CEO Andy Jassy revealed Thursday that President Trump's China tariffs may actually strengthen Amazon's position in the retail market while putting traditional retailers at a disadvantage.
"Retailers who aren't buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding and selling to U.S. consumers," Jassy told analysts following the company's strong first-quarter earnings announcement.

The Amazon chief explained that middle-man costs create a tariff disparity that favors Chinese merchants selling directly through Amazon's marketplace.
"These retailers are buying the product at a higher price than Chinese sellers selling directly to U.S. consumers in our marketplace. So, the total tariff will be higher for these retailers than for China direct sellers," Jassy noted.
While some sellers may raise prices to offset tariff costs, Amazon's vast marketplace of 2 million independent merchants means others will likely view it as an opportunity to capture market share by absorbing the costs.
"I think when you've got larger diversity like we have, we have a better chance of some of those sellers deciding that they're going to capture [market] share, and they're not going to pass on all or any of those tariffs to customers," Jassy said.

Beyond imported goods, Jassy highlighted Amazon's strength in consumer packaged goods, which are largely produced outside China and less affected by the tariffs.
"Even if you exclude Whole Foods Market and Amazon Fresh, Amazon is one of the largest grocers in the U.S. with over $100 billion in gross sales last year," he said.
With Amazon generating more than $150 billion in revenue from seller fees in 2024 alone, the e-commerce giant appears positioned to weather and potentially benefit from market disruptions that could devastate traditional retailers dependent on complex supply chains involving Chinese goods.