Amazon CEO Andy Jassy confirmed tariffs are now raising prices on the platform. Pre-stocked inventory buffers have run out, forcing sellers to pass 10%+ cost increases to consumers.
Jassy noted a shift from June 2025 when prices had not "appreciably gone up." With retail margins at mid-single digits, absorbing 10% cost increases is not sustainable. Sellers face a tough choice: erode margins or lose visibility in Amazon's algorithm.
According to the Kiel Institute, American consumers bear 96% of tariff costs while foreign exporters pay only 4%. Consumers remain "resilient" but are shifting to cheaper alternatives.