Trump tariffs is pushing some Amazon sellers to skip Prime Day sale: Report

Amazon's Prime Day is reportedly seeing reduced participation from some third-party sellers this year. According to a Reuters report, some sellers who import goods from China are either skipping the event or offering fewer discounts to protect their profit margins. This pullback, the report says, is due to higher tariffs on Chinese goods introduced by President Donald Trump.
Steve Green, who sells bicycles and skateboards on Amazon, told the news agency that he will not participate in Prime Day for the first time since 2020. He plans to sell older inventory at full price instead of offering discounts. Green said the new 145% tariffs would make newly imported goods too expensive. Kim Vaccarella, CEO of tote bag company Bogg Bag, is also skipping Prime Day. She plans to sell her remaining stock in U.S. stores like Macy's, Bloomingdale’s, and Dick’s Sporting Goods, the report states. She has paused production in China and is moving manufacturing to Cambodia and Vietnam.

Prime Day has been the e-tailer’s biggest sales event after Black Friday and Cyber Monday. The deadline for sellers to sign up for Prime Day is May 23. If fewer sellers join, it could mean fewer fees and less advertising revenue for Amazon, as well as fewer discounted products for customers. Prime Day has previously helped boost sales and new Prime memberships, which cost $14.99 per month or $139 per year.
Amazon CEO Andy Jassy said in an April 10 interview that Amazon is buying inventory early and renegotiating deals to keep prices low despite tariffs. He said sellers are likely to raise their prices to cover the extra costs.
Amazon has been surveying sellers to understand how tariffs are affecting their businesses ahead of Prime Day.
Third-party sellers made up nearly 62% of units sold on Amazon in the fourth quarter of 2024, according to Marketplace Pulse. Some sellers are testing small price increases, cutting advertising, or reducing imports to manage tariff impacts instead of leaving Prime Day completely.
Michael Slate, who owns KitchenEdge, said he usually prepares for Prime Day months in advance, but uncertainty about costs has made him cautious this year.
Jon Elder, a consultant to about 100 Amazon sellers, said, "Nearly all my clients are pulling back in Prime Day deals. It’s rough right now. Lots of difficult decisions are being made."