Amazon just cancelled inventory orders from China, in response to tarriffs.
Have to say, I take my hat off to them. Nothing but respect for that.
6 replies
Seller_nRFmxiQg4EGrw
Simple business decision. If you bought last week, budgeting for a 54% tariff built into your costs, but now realize that when the shipment arrives, that tariff due may 125% (as of today) or quite likely higher. Who wants to take that kind of risk? Loan sharks have less risky rates.
I've already heard of one seller who has goods on the way that he does not have the funds to pay the new outrageous tariffs.
Seller_Sram36TnVt73c
I hope you're still saying that when grocery prices Skyrocket.
I don't understand why the stock market is rallying today because China is the problem, not these other countries, and that problem hasn't gone away this afternoon... the blatant Market manipulation is astounding.
By the way what inventory did Amazon not purchase and where did you hear the story?
Seller_9z7K85RzAOGC9
Amazon pulls the plug on china orders, leaving vendors in the lurch - Bloomberg
In a move seen as cushioning the impact from U.S. trade policy, Amazon has cancelled orders that originate from China and Southeast Asian countries, leaving certain vendors on the hook with unsold inventory. According to a document viewed by Bloomberg, the ecommerce giant appears to be reducing its exposure to U.S. tariffs on imported merchandise from China-based suppliers who provide a “significant portion” of Amazon’s components and finished goods.
“Economic factors, geopolitical events, security issues, or other factors negatively impacting China-based sellers and suppliers could adversely affect our operating results,” Amazon warned in its 2023 annual report. Amazon vendors are manufacturers or distributors that sell merchandise wholesale to the company, who then resells them to Amazon shoppers. Third party vendors, however, sell merchandise directly to customers on the Amazon Marketplace. Forty percent of the items Amazon sells on its website come directly from third-party vendors, with the remaining 60% from independent merchants who “rent digital shelf space” and pay Amazon commission and fees for logistics and advertising. These first party vendors are now caught in the crossfire between U.S. trade policy against foreign-made goods and mitigation efforts by U.S. corporations.
According to Bloomberg, a consultant to Amazon vendors claims the company has cancelled several “direct import orders” of products made in China without warning. Because Amazon acts as the “importer of record” on these orders, it is responsible for paying import tariffs once the merchandise arrives in the U.S. However, if the order is canceled once shipping is initiated, the tariff burden lies with the vendor once the merchandise reaches the U.S.
Seller_5ttu1AKpRj26d
In 2024, China-based sellers increased their market share to more than 50% on Amazon.
American sellers have dropped below 50% nearly two years ago. However, Chinese sellers have grown above 50% only recently, as there is a small percentage of sellers in other countries. Based on Marketplace Pulse research, Chinese sellers now represent more than 50% of the top sellers on Amazon.com, with U.S. sellers representing roughly 45% and the rest in the U.K., Canada, or other countries. China’s share of all active sellers is even higher. (Some international sellers incorporate in the U.S., so American sellers’ actual share is lower than 45%)
