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Some Amazon sellers are pulling out of Prime Day amid Trump tariffs

The planned pullback is a way for sellers to protect profit margins amid the US-China trade war triggered by steep tariffs on Chinese goods

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Packages are transported on a conveyor belt at the Amazon warehouse in New York on Prime Day, July 11, 2023. Photo: Reuters

Amazon’s Prime Day is losing its lustre among a critical group: sellers.

Some third-party merchants who previously sold China-made goods during Amazon’s premier July shopping event are sitting it out this year or reducing the amount of discounted merchandise they offer.

The planned pullback, which has not been previously reported, is a way for sellers to protect profit margins amid the US-China trade war triggered by steep tariffs placed by US President Donald Trump on Chinese goods, according to four merchants and six consultants collectively advising hundreds of Amazon sellers.

Among them is Steve Green, who sells US$230 bicycles and US$60 skateboards from China on Amazon’s online marketplace. Green said he is skipping Prime Day for the first time since 2020.

He is holding back merchandise he imported before Trump’s tariffs took effect on April 9, to sell later at full price. The China tariffs, which stand at 145 per cent, will more than double his costs of goods on newly imported merchandise, making it “unaffordable,” he said.

The Amazon logo is seen outside its JFK8 distribution centre in Staten Island, New York, November 25, 2020. Photo: Reuters
The Amazon logo is seen outside its JFK8 distribution centre in Staten Island, New York, November 25, 2020. Photo: Reuters

Similarly, Kim Vaccarella, chief executive of China-made tote bag company Bogg Bag, also decided to skip Prime Day this year, to retain some of her unsold US inventory, which she hopes to sell at Macy’s Bloomingdale’s, Dick’s Sporting Goods and smaller, independent shops, at full price or for smaller discounts. She has halted production of China-made Bogg Bags, which sell for US$70 to US$200 on Amazon, while she works to move manufacturing to Cambodia and Vietnam.

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