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Business Insider
25-04-2025
- Business
- Business Insider
Pricier appliances, snacks, and electronics: Amazon sellers are raising prices on some of the site's most popular items
Prices are going up on Amazon. Data from SmartScout, an e-commerce analytics company, shows that Amazon sellers have already raised prices on some of the marketplace's most popular products to all-time highs. Scott Needham, the company's founder and CEO, said SmartScout identified nearly 900 products on Amazon that are currently listed at their highest prices ever. All the products are top items on Amazon and sell at least 1,000 units monthly. SmartScout analyzed over 100,000 listings to arrive at the more than 800 listings that had raised prices. The average increase in the listings with higher prices was 29%. A quarter of the sellers raising prices are based in China. The price changes went into effect in the two weeks immediately following President Donald Trump's announcement of tariffs, on April 2, which he called " Liberation Day." While Trump put a 90-day pause on most tariffs, those on China-made goods have gone into effect, leading many e-commerce sellers to explore raising prices or diversifying their supply chain. Sellers have the discretion to determine their own prices on Amazon, but those who do raise their prices risk losing the coveted buy box. "Winning" the buy box is crucial because it means your listing is the default purchase option and has the "Add to Cart" button on it, increasing the odds of beating competing listings to a sale. The buy box algorithm compares listed prices on Amazon to those on the same product at competitors, incentivizing sellers to always have their lowest price on Amazon. Popular snacks, kids' toys, home appliances, and clothing are among the Amazon listings with higher prices than before. Several are well-known brands, like US home goods brand Zulay Kitchen and Chinese electronics accessories brand Anker, which each have four products on SmartScout's list. Hong Kong-based smart device brand Govee raised prices on 11 of its best-selling items. Even some items sold by Amazon Basics — Amazon's own private label — have gotten more expensive by a few dollars and cents, including things like batteries, USB cables, and melatonin gummies. An Amazon representative disputed SmartScout's findings, saying it examined only a "tiny fraction of items in our store." "We have not seen the average selling prices of products change up or down appreciably outside of typical fluctuations across the hundreds of millions of items on Amazon," the spokesperson said. Anker and Govee did not immediately return requests for comment from BI. Tariffs are forcing businesses to make 'massive pivots' Zulay Kitchen founder and CEO Aaron Cordovez told Business Insider the Florida-based brand is raising prices because it does not believe the tariff situation will resolve soon. "Right now, the vast majority of our products are coming out of China, and we believe it will take about six months to get a good amount coming from other countries," Cordovez told BI in an email. "We need to not blow through our stock while we figure out how to bring in product from elsewhere." Dozens of Amazon sellers signed a petition earlier this month asking Amazon to consider revisiting its buy box policies amid the turmoil created by tariffs. "Businesses need to react quickly to the tariffs, which have been changing daily, and right now they can't pivot fast enough due to the buy box suppressions from price increases," David Cassarino, director of Amazon marketing at digital growth firm National Positions, told BI. He said he signed the petition because he believed his clients needed greater flexibility to raise prices without affecting their buy-box position. Cordovez said it would take about a year to "solve" most of the brand's supply chain problems. "Our business does not work with the tariffs unless we make massive pivots, so that's what we're doing, and it includes price increases," he said. Amazon CEO Andy Jassy said in an interview on CNBC that he expected sellers would have to pass on the extra cost of tariffs to customers. "I understand why, I mean, depending on which country you're in, you don't have 50% extra margin that you can play with," he said.
CNBC
25-04-2025
- Business
- CNBC
Amazon sellers raise prices after Trump's China tariff: 'It's unsustainable'
For 10 years, Aaron Cordovez has been selling kitchen appliances on Amazon. Now he's in a bind, because most of his products are manufactured in China. Cordovez, co-founder of Zulay Kitchen, said his company is moving "as fast as we can" to move production to India, Mexico and other markets, where tariffs are increasing under President Donald Trump, but are mild compared with the levies imposed on goods from China. That process will likely take at least a year or two to complete, he said. "We're making our inventory last as long as we can," Cordovez said in an email. Zulay is also temporarily raising the price of some of its milk frothers, smores roasting sticks and other products. The company's popular kitchen strainer now costs $12.99, up from $9.99 before Trump announced his sweeping tariff proposal earlier this month. Amazon merchants are hiking prices for everything from diaper bags and refrigerator magnets to charm necklaces and other top-selling items as they confront higher import costs. E-commerce software company SmartScout tracked 930 products on Amazon that have seen increased prices since April 9, with an average jump of 29%. The price hikes affect a range of categories, including clothing, jewelry, household items, office supplies, electronics and toys. The trade war with China has threatened to upend sellers on Amazon's third-party marketplace, which accounts for about 60% of the company's online sales. Many merchants are based in China or rely on the world's second-largest economy to source and assemble their products. Sellers are now faced with the conundrum of raising prices or eating the extra costs associated with Trump's new tariffs. It's an existential threat for many sellers, who subsist on razor-thin margins and have, for the last several years, dealt with rising costs on Amazon tied to storage, fulfillment, shipping and advertising fees along with pricing pressure from increased competition. CEO Andy Jassy told CNBC earlier this month that the company was "going to try and do everything we can" to keep prices low for shoppers, including renegotiating terms with some of its suppliers. But he acknowledged some third-party sellers will "need to pass that cost" of tariffs on to consumers. Amazon's stock price is down 15% so far this year, sliding along with the broader market. The company reports first-quarter earnings next week. Goods imported from China now face import duties of 145%, though Trump said Wednesday his administration is "actively" talking with China about a potential deal to lower tariffs. Chinese officials on Thursday denied that trade talks are taking place. About 25% of the price increases observed by SmartScout were initiated by sellers based in China, said Scott Needham, the company's CEO. Last week, stainless steel jewelry maker Ursteel hiked prices on four of its products by $6.50, while apparel brand Chouyatou raised the price of some of its dresses by $2. Both businesses are based in China's Zhejiang province. Anker, a Chinese electronics brand and one of Amazon's largest sellers, has raised prices on one-fifth of its products sold in the U.S., including a portable power bank, which went up to $135 from $110, SmartScout data shows. Representatives from Anker, Ursteel and Chouyatou didn't respond to requests for comment. Zulay, headquartered in Florida, is one of many U.S.-based sellers raising prices. The company is also cutting costs. Cordovez said he's been forced to lay off 19% of his workforce and slash online ad spending by 85%. Desert Cactus, based in Illinois, is also taking action. Joe Stefani, the company's president, has been looking to move production of some of his brand's college-themed merchandise out of China and into Mexico, India and Vietnam. About half of Desert Cactus' goods come from China, while the rest are made in the U.S., Stefani said. One of the company's top products is a customizable license plate frame that's manufactured in China. At the start of Trump's first term in 2016, Stefani's company paid import and shipping fees of 4% on the license plates. That rate has since skyrocketed to 170%, he said. "The tariffs can't stay this high" Stefani said. "There's so many people that just aren't going to make it." Stefani said he expects Desert Cactus will end up raising prices on some products, though he's worried shoppers might be put off by sticker shock. "Will someone be willing to pay $50 for a hat on Amazon?" Stefani said. "You know it's going to be expensive at the ballpark, but on Amazon we don't know." Dave Dama, co-founder of health and beauty business Pure Daily Care, said the price to manufacture one of his skin-care products in China jumped to $25 from $10. Most Amazon sellers will have no choice but to raise prices, he said. "If you were selling something for $40 and making a $7 or $8 profit at the end of the day, with these tariffs, those days are gone," Dama said. "You can't do that anymore. It's unsustainable." Pure Daily Care plans to stagger price increases over several weeks, and only on products "we absolutely need to," to keep Amazon's algorithms from ranking it lower in search results or losing the valuable buy box, he said. The buy box determines which listing pops up first when a shopper clicks on a particular product, and the one that gets purchased when they tap "Add to Cart." An Amazon spokesperson said the company's pricing policies continue to apply. "As always, sellers set their own prices, and we regularly monitor how we highlight great prices as Featured Offers to provide customers with low prices across a wide selection," the spokesperson said in a statement. Dama said his company has enough inventory for some products to last up to six months, which it aims to "stretch as long as possible" in the hope that China and the U.S. can reach a trade deal. The company is also forgoing some sales promotions and discounts, while pausing spend on some display and video ads. Regarding his inventory, Dama said, "We can try to stretch that seven, eight, nine months, which buys us a lot more time for this thing to work out, hopefully."
Chicago Tribune
27-03-2025
- Business
- Chicago Tribune
Hidden Gems from Amazon's Big Spring Sale
The Amazon Big Spring Sale is underway, and there are tons of fantastic products with huge discounts. Big-ticket items such as TVs, laptops, power tools and fitness equipment are always on the high-priority list for many shoppers, but there are a handful of not-so-obvious items that are well worth your attention. Amazon's Big Spring Sale features slashed prices on terrific hidden gems, such as facial massagers, electric scooters, espresso machines, golf rangefiners, and more. We've rounded up the hottest deals for shoppers to take advantage of during the big sale, so gear up and check out the best hidden gems of Amazon's Big Spring Sale. Best hidden gems of Amazon's Big Spring Sale Callaway Golf 300 Pro Laser Rangefinder Limited Edition This laser rangefinder can give you a significant edge over your opponents the next time you hit the course. It's equipped with 6x magnification and has a range of up to 1,000 yards with accuracy within 1 yard. Pin-locking technology locks on to targets up to 300 yards away and lets you know when you have the correct distance reading. Plus, it comes with a premium molded case. Segway Ninebot Kick Scooter E2 Plus 25% OFF The Segway Ninebot E2 Plus offers up to 15.5 miles of total riding distance on a full charge and features 8.1-inch shock-absorbing tires for smooth riding. It has four speed modes, a dual-brake system, a 2.8-inch LED dashboard that displays battery status, and 256-color RGB lights with three effects. Fullstar All-in-1 Vegetable Chopper and Mandoline Slicer Chopping down vegetables has never been easier with this innovative push-down mandoline slicer. It has five interchangeable blades that you can adjust for chopping, slicing and julienne. It features a finger guard for safe operation and a bonus three-in-one adjustable spiralizer. Zulay Kitchen Powerful Milk Frother Wand 38% OFF This wand makes it easy to achieve that rich, creamy foam on top of your morning latte or cappuccino. It has a 13,000 rpm motor and 26 spiral rings that whisk milk into a tasty microfoam. It works with all kinds of milk, including soy, almond, oat and skim, and you can also use it to whisk eggs for an omelet or mix protein powder. Dimunt LED Floor Lamp Whether you're reading at bedtime, working on your latest artwork, or even tattooing, you need a well-lit area. This LED floor lamp is an excellent buy for Amazon's Big Spring Sale. It offers 10 brightness settings, five color temperature modes and a one-hour timer. Plus, it doesn't heat up or flicker and has a stable base for virtually zero shaking. THE GYM PEOPLE Thick High Waist Yoga Pants 33% OFF Few things are as uncomfortable as restricted mobility during workouts, which is why these high-waist yoga pants are a must-buy for the active woman. They're made with moisture-wicking material that offers a four-way stretch for superior compression and support. They have side pockets and a hidden inner pocket, and they're available in 32 colors. Gillette Labs Heated Razor Gold Edition 17% OFF If you have sensitive skin and suffer from razor burn, nicks and cuts every time you shave, you could benefit from this five-blade razor. The moisturizing strip heats up, providing soothing warmth, much in the same way a hot towel softens the skin. It's waterproof, so you can use it in the shower, and it comes with a magnetic wireless charging dock. CASABREWS 3700 Essential Espresso Machine 23% OFF This espresso machine can brew latte, macchiato and cappuccino in just minutes. It has a 20-bar professional pump and a powerful 1,350-watt motor for high-quality extraction, guaranteeing a rich brew every time. It features a steam wand for whisking rich micro-foam and a sizable 49-ounce tank for making several brews without having to refill it. Nekteck Shiatsu Foot Massager Machine 27% OFF Enjoy a foot massage at home after a hard day with this foot massager that's designed to target foot reflex zones and massage points, providing relief for sore feet. It has deep-kneading nodes that mimic traditional massage techniques and features multiple massage modes, heat settings and adjustable air compression intensity levels. Nostalgia Snow Cone Shaved Ice Machine 20% OFF This affordable ice shaver is perfect for making delicious snow cones right at home. It has durable stainless-steel blades that cut down ice cubes into fluffy snow-like ice and a compact design that won't take up too much space in your kitchen. It works with all Nostalgia Snow Cone Kits and comes with a reusable snow cone cup. Other hidden gems from Amazon's Big Spring Sale Prices listed reflect time and date of publication and are subject to change.
