Amazon sellers hike prices of goods after Trump’s China tariffs

For 10 years, Aaron Cordovez has been selling kitchen appliances in Amazon. Now it is in a link, because it is the majority or products are manufactured in China.

Cordovez, co -founder of Zulay Kitchen, said his company is moving “as fast as we can” to transfer production to India, Mexico and other markets, where tariffs are increasing under President Donald Trump, but they are Mildy China. It is likely that this process will take at least a year or two to complete, he said.

“We are making our inventory the last as Podemos,” Cordovez said in an email.

Zulay is too Temporarily increase the price of some of its milk buffers, roast sticks and other products. The popular kitchen strainer of the company now costs $ 12.99, compared to $ 9.99 before Trump announced its wide rate proposal earlier this month.

Amazon Merchants are hiking prices for everything, from diaper bags and refrigerator magnets to charm necklaces and other best -selling items, since they face greater import costs. The SmartScout electronic commerce software company tracked 930 products on Amazon that have seen an increase in prices since April 9, with an average jump or 29% in categories, including clothing, jewelry, home items, office supplies, electronics and toys.

In a statement to CNBC, a Amazon spokesman described the “sensationalized” statement and said the investigation covers “a small fraction of items in our store.” Amazon said that, according to his vision of the investigation, less than 1% “of the articles studied saw an increase in the price.”

“We have not seen the abveria that the sale of products prices changes up or down, appreciably, the typical fluctuations in the hundreds of millions of articles on Amazon,” the statement said. “And continuously to fulfill or overcome prices in front of other retailers in the fixed majority of the articles.”

The commercial war with China has threatened to return sellers in the Amazon third parties, which represents approximately 60% of the company’s online sales. Many merchants are based in China or depend on the second largest economy in the world to obtain and gather their products.

Sellers now face the enigma of raising prices or eating additional costs associated with new Trump rates. It is an existential threat to many vendors, which subsist in thin razors and have, in recent years, with increasing costs on Amazon linked to storage, compliance, shipping and advertising competition.

The CEO Andy Jassy told CNBC earlier this month that the company was going to try to do everything possible “to maintain low prices for buyers, including renegotiant terms with some of its suppliers. But he acknowledged that some third -party vendors” will need to approve that cost “or tariffs to consumers.

The price of Amazon shares has dropped 15% so far this year, sliding along with the broader market. The company reports the first quarter profits next week.

The imported assets of China now face import tariffs of 145%, he thought Trump said Wednesday that his administration is “actively” talking to China about a possible agreement to reduce tariffs. Chinese officials Thors day denied that commercial conversations are taking place.

About 25% of the price increases observed by Smartscout were initiated by China Sellers, said Scott Needham, the company’s CEO. Last week, the manufacturer of stainless steel jewelry Ursteel walked prices in four of its products for $ 6.50, while the Chouyatou clothing brand increased the price of some of their dresses by $ 2. Both companies are based in the province of Zhejiang in China.

Anker, a Chinese electronics brand and one of Amazon’s largest vendors, has increased prices by a fifth of its products sold in the US, including a portable energy bank, which rose to $ 135 from $ 110, as shown by Smartscout data.

Representatives of Anker, Ursteel and Chouyatou did not respond to requests for comments.

Zulay, based in Florida, is one of the many American vendors that increase prices. The company is also reducing costs. Cordovez said he was forced to say goodbye to 19% of his workforce and cut the expense in online ads in 85%.

Desert Cactus, based in Illinois, is also taking action. Joe Stefani, the president of the company, has been seeking to move the production of some of the university theme products of his brand out of China and in Mexico, India and Vietnam. About half or desert cactus products come from China, while the rest are carried out in the United States, said Stefani.

One of the company’s main products is a customizable license frame manufactured in China. At the beginning of Trump’s first mandate in 2016, the Stefani company paid import and 4% shipping in the license plates. That rate has shot 170%, he said.

“Tariffs cannot keep so high,” Stefani said. “There are so many people that they simply will not.”

Stefani said he expects Cactus to end up increasing prices in some products, although he is worried that buyers can be discouraged by the shock of the label.

“Will some be willing to pay $ 50 for a hat on Amazon?” Stefani said. “You know it will be expectation in the stadium, but in Amazon we don’t know.”

Dave Lady, co -founder of the health and beauty business, Pure Daily Care, said the price to make one of its skin care products in China increased to $ 25 from $ 10. Most Amazon vendors will have no choice but to increase prices, he said.

“If I was selling something for $ 40 and obtaining a gain of $ 7 or $ 8 at the end of the day, with thesis rates, those days have gone,” said Lady. “You can’t do that anymore. It’s unsustainable.”

Pure Daily Care plans to scarce price increases approximately several weeks, and only in the products “we absolutely need”, to prevent Amazon algorithms from classified in the search results or lose the valuable purchase box, he said. The purchase box determines which list appears first when a buyer clicks on a productular product, and the one that is bought when they play “Add to the cart”.

A Amazon spokesman said the company’s price policies continue to apply.

“As always, sellers establish their own prices, and regularly monitor how we highlight excellent prices as outstanding offers to provide customers with low prices in broad selection,” said the spokesman in a statement.

Ladma said his company has enough inventory so that some products last up to six months, which intends to “stretch as long as possible” in the hope that China and the United States can reach a commercial agreement. The company is also anticipated some promotions and sales discounts, while stopping expenses in some exhibition and video ads.

Regarding his inventory, Lady said: “We can try to stretch those seven, eight, nine months, which buys much more time for this to work, hopefully.”