Amazon sellers raise the prices of goods after the Chinese tariff

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A person works in the Amazon warehouse, busy at Prime Day, in Melville, New York, July 11, 2023.

Surin Larson Reuters

For 10 years, Aaron Cordovez was selling kitchen appliances on Amazon. Now it is in a link, because most of its products are manufactured in China.

Kurdose, co -founder of Zulay Kitchen, said his company is moving “as soon as we can” transfer production to India, Mexico and other markets, where the definitions are increasing under President Donald TrumpBut moderate compared to the fees imposed on the goods from China. He said this process is likely to take at least one or two years to complete it.

“We make our stock lasts as long as we can,” Cordez said in an email.

Zulai is also Raise the price of some FROTS milk, SMORES roasting sticks and other products. The company’s famous kitchen refinery now cost $ 12.99, up from $ 9.99 before Trump announced his comprehensive introductory proposal earlier this month.

Amazon Traders are walking long distances in everything from diaper bags and refrigerator magnets to magic necklaces and other elements that are sold from above to facing high import costs. Smartscout Smartscout 930 products have tracked Amazon, which has seen a price increase since April 9, with a 29 % jump in the categories, including clothing, jewelry, household items, office supplies, electronics and games.

In a CNBC statement, an Amazon spokesman called the “exciting” claim and said that the search covers “a small part of the elements in our store.” Amazon said that, based on its view of the research, less than 1 % “of the elements that were studied witnessed an increase in the price.”

The statement said, “We have not seen the average selling prices for products change or decrease significantly outside the typical fluctuations across hundreds of millions of elements on Amazon,” the statement said. “We are still meeting or overcoming prices against other retailers in the vast majority of elements.”

The trade war with China threatened to raise sellers on the third -party Amazon market, which represents about 60 % of the company’s online sales. Many traders in China depend or depend on the second largest economy in the world for the source of and collect their products.

Sellers are now facing the puzzle of raising prices or adding additional costs associated with the new Trump tariffs. It is an existential threat to many sellers, who suffer from shaving margins, and have, over the past few years, are increasing costs on Amazon associated with storage, loyalty, shipping and advertising fees along with price pressure from increasing competition.

CEO Andy Jaci CNBC said Earlier this month, the company “will try to do everything we can” to keep the prices low for shoppers, including re -negotiation with some of its suppliers. But he admitted that some third -party sellers would need to pass this cost “from the customs tariff for consumers.

The Amazon share price has decreased by 15 % so far this year, and is advancing with the broader market. The company reports the profits of the first quarter next week.

See the full CNBC interview with the CEO of Amazon Andy Jassy

The goods imported from China are now facing 145 % import duties, although Trump He said Wednesday His administration is “active” talking to China about a possible deal to reduce customs tariffs. Chinese officials He denied Thursday The commercial conversations occur.

Scott Nidham, CEO of the company, said about 25 % of the price increases that Smartscout noticed has started by sellers in China. Last week, URSTEEL Jewelry Industry Company, made of stainless steel, raised its prices on four of its products by $ 6.50, while the Chouyatou clothing brand raised the price of some of its dresses by $ 2. Both companies are located in the Chinese province of Zhejiang.

Anker, a brand for Chinese electronics and one of the largest Amazon sellers, raised prices on the fifth of its products sold in the United States, including a Mobile Energy BankWhich rose to $ 135 out of $ 110, Smartscout data appears.

Anker, Ursteel and Chouyatou representatives did not respond to the comment requests.

Zoulay, which is headquartered in Florida, is one of the US headquarters who are headquartered in the US headquarters. The company also reduces costs. Cordez said he had to lay off 19 % of his working power and reduce online spending by 85 %.

Aloe vera desert, based in Illinois, also takes action. Joe Stephanie, the company’s president, is looking to transfer the production of some of the university -character goods to his brand from China, to Mexico, India and Vietnam. Stephanie said that about half of the desert cactus commodities come from China, while the rest is manufactured in the United States.

Amazon worker transports a firm cart at the Amazon Delivery Station in Alphartta, Georgia, on November 28, 2022.

Justin Sullivan Gety pictures

One of the best company products is a customizable license plate frame that is manufactured in China. At the beginning of Trump’s first period in 2016, Stephanie paid import and shipping fees by 4 % on licensing panels. He said that this rate has increased to 170 % since then.

“The definitions cannot remain in this way,” said Stephanie. “There are many people who will not do it.”

Stephanie said he expected to end with Desert Cactus to raise prices on some products, although he is concerned that shoppers may be postponed due to the shock of stickers.

“Will someone be ready to pay $ 50 for a hat on Amazon?” Stephanie said. “You know it will be expensive on the field, but in Amazon we don’t know.”

Dave Dama, co -founder of the Health and Beauty Business Pure Daily Care, said that the manufacture of one of his skin care products in China jumped to $ 25 from $ 10. He said that most Amazon sellers will have no choice but to raise prices.

“If you are selling something for $ 40 and a profit of $ 7 or $ 8 at the end of the day, with these definitions, those days are come,” she said. “You can’t do it anymore. It’s not sustainable.”

He said that pure daily care plans to increase rich prices over several weeks, and only on the products “we need completely”, to prevent Amazon algorithms from arranging the search results or losing the valuable purchase box. The purchase box that emerges the list first determines when the shopper clicks on a specific product, and the product that is purchased when clicking “Add to the cart”.

A Amazon spokesman said that the company’s pricing policies continue to advance.

“As always, sellers have set their own prices, and we regularly monitor how to highlight the wonderful prices as special offers to provide customers at low prices through a wide range,” the spokesman said in a statement.

Dama said that his company has sufficient stocks for some products to last for up to six months, which aims to “extend for as long as possible” in the hope that China and the United States will reach a trade agreement. The company also gives up some promotional offers and discounts, while temporarily stops spending on some display and video ads.

Regarding its store, Dama said: “We can try to extend this seven, eight or nine months, which buys a lot of time for this thing to work, and we hope.”

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