After pledging to keep prices low, Amazon hiked them on hundreds of essentials

Mint

18 hours ago

In April, Amazon said it would hold the line on prices. The Journal's analysis of prices from e-commerce data firm Traject Data found that while Amazon's price rose on 1,200 of its cheapest household goods, competitor Walmart lowered prices on the same items by nearly 2%.
The divergent strategies show how major retailers are reshaping prices on popular products as uncertainty about tariffs drags on.
Amazon said the products tracked by the Journal weren't representative of the company's prices overall. 'We have not seen the average prices of products offered in our store change up or down appreciably," the company said in a statement. 'Our commitment to offering low prices—not relative percentage changes—is what delivers the most value to our customers."
Manufacturers of several of the products that became more expensive on Amazon say they haven't raised the prices they charge retailers. Even domestically made goods, such as the 'Made in U.S.A" Campbell's soup, saw increases.
Imported goods and products with mixed origins—domestically assembled with imported components—faced even steeper hikes.
Take the stackable metal basket from Ohio-based Dayglow LLC, which imports from China and other countries. Before mid-February, Amazon sold it for $9.31. By late April, Amazon had lifted the price to $19.99.
Dayglow hasn't changed the prices it charges Amazon despite paying more on its imported goods, according to Nick Morrisroe, the company's CEO. 'Any container I had that was coming took a cost increase basically overnight," he said of steel tariffs that came into effect last month.
The lowest-cost goods on Amazon saw one of their largest single-day increases on Feb. 15, two days after Trump signed an order suggesting tariffs would apply to most U.S. trading partners.
Many of the products tracked by the Journal are 'everyday essentials" on Amazon—a category that represents one of every three units sold on Amazon in the U.S. during the first quarter of 2025, the company said.
Amazon struggles to turn a profit on these products because shipping costs erase the already-thin margins, said Corey Thomas, an Amazon vendor consultant. Walmart can afford to lose money on similar online sales because customers often buy more profitable items in stores, he added.
Prices fluctuate for various reasons, including seasonal discounts, competition and inflation, which accelerated last month. Amazon said the products analyzed by the Journal were out of stock more frequently on competitors' websites.
Some more-expensive items in the Journal's analysis decreased in price as new versions were introduced. Prices fell during Amazon's Prime Day sales event that ran between July 8 and July 11 and have since rebounded, though they remain below their July 1 levels. Trump's recent delay of the tariff deadline to Aug. 1 also gives retailers time to stockpile products before higher rates go into effect.
Retailers say they have tried everything to keep a lid on price increases, including pressuring suppliers and dropping free perks at offices. Target said it gives priority to other cost-control measures before raising prices, while Walmart said the data reflects its reputation for affordable pricing.
The broader retail response to tariffs has been relatively muted. Prices for imported goods are up about 2% since March, according to research from Harvard economist Alberto Cavallo and members of the Harvard Business School's Pricing Lab.
'The lack of clarity may be causing retailers to implement price changes more cautiously and incrementally," Cavallo said.
Many brands and retailers have used coded language when discussing pricing strategies with investors, fearing political backlash. Earlier this year, Amazon backed away from a plan to display tariff impacts on its bargain website Haul after the White House called the plan a 'hostile and political act."
Trump warned businesses in May to 'EAT THE TARIFFS" after Walmart said higher tariffs would result in higher prices.
For Morrisroe, whose company faced potential 145% tariffs on Chinese goods already in transit when the plan was announced, that directive carried real weight. 'Had they stayed at 145%, we would have been shutting down here," he said. Instead, his company paid the 30% tariff after Trump reduced the rate. Dayglow is now negotiating with manufacturers, searching for suppliers outside China and considering raising prices.
For now, Morrisroe said he's doing exactly what Trump asked—eating the tariffs.
Write to Shane Shifflett at [e-mail], Nate Rattner at [e-mail], Sebastian Herrera at [e-mail] and Brian Whitton at [e-mail]