Amazon prices rise by 29% on hundreds of top-selling items and shortages likely as sellers unable to cope with changes

SHOPPERS are dishing out more cash for hundreds of top-selling items on Amazon, which have increased in price by roughly 29%.

Sellers on the platform are likewise struggling as the trade war ensues, triggering potential shortages as costs to ship goods to the US soar.

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Import costs are on the rise under the current administration’s tariff battle with other countries, especially China, which is currently facing levies up to 145%

As a result, many Amazon merchants are hiking prices on hundreds of top-selling items.

Consumers are having to spend more money on everything from diaper bags to necklaces and other chart-topping products as sellers pass on the high import costs.

Categories such as apparel, jewelry, homeware, office supplies, electronics, and toys have increased on average by 29%, per SmartScout, which tracked over 900 Amazon items that have increased in cost since April 9.

The number is “sensationalized,” however, an Amazon spokesperson told CNBC, noting that the research covered “a tiny fraction of items in our store.”

Under 1% of the items studied jumped in price, according to the e-commerce giant’s view of the research.

“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 statement said.

“And we continue to meet or beat prices versus other retailers on the vast majority of items.”

The back-and-forth tariff battle with China is threatening sellers on Amazon’s third-party marketplace, comprising roughly 60% of the company’s online sales.

Many sellers are based in China or rely on the the country to source and assemble their goods, with roughly 25% of the recent price spikes coming from Chinese sellers, per SmartScout data.

Amazon merchants are stuck between either hiking their prices or absorbing the additional costs stemming from Trump’s tariffs.

The situation is daunting for many sellers, who already have slim margins and have faced increasing costs on Amazon related to storage, fulfillment, shipping, and advertising across the past few years.

Increased competition has also created a tough climate for Amazon merchants.

SELLER STRESS

The rising costs associated with the new tariffs is impacting not only sellers based in China, but also many US-based merchants.

Why has Trump hit China, Canada, and Mexico with tariffs?

DONALD Trump has imposed 10% tariffs on Chinese imports and Beijing has retaliated. Trump also hit Canada and Mexico with 25% tariffs, but walked back many of them on March 6

China:

• Trump believes China has not done enough to stop the production of chemicals used to make the drug fentanyl.
• China has slammed Trump for the claim and described fentanyl as America’s problem.
• The country also said the tariffs are a “serious violation” of the World Trade Organization rules.
• China is filing a lawsuit with the WTO against the US for “wrongful practice.”
• China serves as a major supplier of auto parts to the US.
• Phones, computers, and other key electronic devices were also in the top imports from China last year, according to Commerce Department data.
• In 2023, the US imported around $427 billion worth of products from China, according to the US Census Bureau.
• Data reveals that 78% of all smartphones imported from the US came from China.
• Trump’s tariff threat has sparked fears of price rises for fashion items and toys.
• Beijing has responded by outlining its own tariffs on American goods, sparking fears of an all-out trade war between the two superpowers.

Canada:

• Trump ignited a trade war with Canada and Mexico during his first days in office as part of a campaign promise to stop the flow of fentanyl and illegal immigrants into the United States.
• He said both countries had not done enough to halt the drug flow and the mass influx of migrants from reaching US soil.
• A total of 59 pounds of fentanyl was seized at the northern border by US agents between 2022 and 2024, according to the Canadian government. 
• Meanwhile, almost 62,000 pounds of the drug was seized at the southern border.
• The 25% tariffs Trump proposed on Canadian goods were destined to come into force on March 4.
• Canada responded with a 25% tariff on $155 billion of American imports.
• On March 6, Trump warned the 25% tariff on steel and aluminium would come into force on March 12.
• Ontario Premier Doug Ford responded with a 25% surcharge on electricity exported to Michigan, Minnesota, and New York.
• Trump then threatened to double the 25% tariff to 50%.
• The Ontario premier warned that he “will not hesitate to increase” the levies or completely shut off power to the three US northeastern states.
• Both sides then agreed to talk and toned down their threat.
• Ford then paused the electricity surcharge.

Mexico:

• Mexico has managed to twice postpone Trump’s tariffs on Mexican goods.
• On February 1, Trump signed an executive order to impose tariffs on imports from Canada, Mexico, and China.
• But, on February 3, Trump agreed to pause the levies against Canada and Mexico after the countries took steps to appease Trump’s concerns on border security and drug trafficking.
• Trump then threatened that the 25% tariffs would come into force on March 4.
• Two days later, Trump announced a delay on most goods covered under the US-Mexico-Canada Agreement.
• Trump credited Mexican President Claudia Sheinbaum’s progress on border security and drug smuggling as a reason for the pause on the levies.
• The Mexican Navy has seized thousands of kilograms of drugs from criminal gangs.
• Sheinbaum promised to deploy 10,000 extra troops to the Mexico-US border.
• Still, Trump has maintained that on April 2, the US will begin imposing reciprocal tariffs on all its trading partners, including Mexico.

For example, Aaron Cordovez, co-founder of Zulay Kitchen, has made a living selling kitchen appliances on Amazon for a decade.

But he is now worried about the future of his business as the majority of his products are made in China.

Zulay Kitchen, headquartered in Florida, is moving “as fast as we can” to move production to India, Mexico, and other markets, Cordovez told CNBC.

While these countries are also facing increased tariffs due to the trade war with the US, they are much less than the rates on Chinese goods.

Cordovez explained that the process of shifting the company’s countries of manufacture would probably take a year or two at minimum to complete.

“We’re making our inventory last as long as we can,” said the Amazon seller.

Dave Dama, co-founder of health and beauty business Pure Daily Care, also shared his fears regarding company inventory.

Dama noted that his company has sufficient inventory of certain products to last for up to six months, which it intends to “extend as much as possible” in the hope that China and the United States can secure a trade agreement.

“We can try to stretch that seven, eight, nine months, which buys us a lot more time for this thing to work out, hopefully,” he said.

Shoppers on e-commerce platforms such as Shein and Temu will also see higher prices starting April 25 – and prices could rise by 125%.

Meanwhile, Walmart and Home Depot broke their silence after crisis talks with Trump as shoppers fear high prices at checkout.