Exclusive: Some Amazon Sellers Pull Out of Prime Day Amid Trump Tariffs

As Amazon’s highly anticipated Prime Day approaches, some third-party sellers are opting out or scaling back their involvement due to the ongoing concerns over Trump-era trade tariffs. These tariffs, which have impacted a range of imported goods, have made it increasingly difficult for sellers to offer discounts while maintaining profitability.

Impact of Tariffs on Prime Day Deals

With the introduction of new tariffs, many sellers have found it challenging to commit to the usual price reductions and promotions that Prime Day typically sees. Some have decided to reduce the number of deals they offer, while others have chosen to completely pull out of the event. This has led to concerns about how Prime Day sales will be affected, particularly for those relying on third-party vendors.

Why Sellers Are Pulling Out

The Trump administration’s tariffs on Chinese goods have significantly raised the cost of many items. As a result, sellers are finding it difficult to absorb these higher costs while offering the competitive discounts that Amazon shoppers expect during Prime Day. The higher expenses associated with shipping and production have left some sellers unsure about the value of participating in Prime Day promotions.

Third-Party Sellers’ Role in Amazon’s Market

Third-party sellers have become a critical component of Amazon’s marketplace, accounting for 62% of units sold in Q4 of 2024. This substantial share means that the decisions made by these sellers can have a significant impact on the overall sales and success of events like Prime Day. Their reluctance to participate due to tariff issues could result in fewer deals and lower overall sales figures.

Looking Ahead: Prime Day 2025 and Beyond

As Amazon works to maintain its status as the dominant player in the e-commerce space, it will need to find ways to support its third-party sellers through this tariff-related uncertainty. Whether through tariff relief or other financial incentives, how Amazon addresses these concerns will likely determine the outcome of Prime Day 2025 and beyond.

With fewer sellers participating or scaling back their deals, consumers may see a reduced selection of discounts and promotions, making this Prime Day different from those in years past. Keep an eye on updates as the event nears and more sellers decide whether to participate.