Foreign media broke the news! US tariffs have hurt Amazon sellers!

Since the escalation of trade frictions between China and the United States, although both sides have fought back and forth, the impact on us Amazon sellers has been relatively limited. This is mainly because the last batch of sanctioned goods lists are basically raw materials and semi-finished products.

However, this batch of 300 billion lists starting from September 1st involves most of the daily necessities categories that our Amazon sellers are operating. After this batch of tariffs officially comes into effect, how will our Amazon sellers be affected?

Recently, foreign media launched a survey on Amazon sellers. Based on the survey results, we will analyze the impact of trade frictions on Amazon sellers from the beginning to the present.

Impact on Amazon sellers

According to a foreign media survey of 197 Amazon sellers, the vast majority of sellers said that their costs have increased due to trade frictions, accounting for as much as 72%.

Among the sellers whose costs have increased, the average increase is 17%. Although it may not seem like much, there are sellers whose costs have increased by as much as 80%. There are many reasons for such a large difference in the cost increase, and the biggest reason should be the difference in product categories.

According to the survey data on categories, the categories most affected by tariffs are home and garden, followed by sports and outdoor. Among the sellers whose costs have increased, up to 20% are from the home category.

However, other categories are basically unable to avoid the cost increase caused by this tariff. This is also the problem we mentioned when we analyzed the 300 billion list last time. The vast majority of sellers will be affected by this taxation, and almost no seller can be spared.

Therefore, sellers cannot avoid tariff costs by switching to other categories and can only choose to raise selling prices to pass this cost on to consumers, otherwise the sellers’ profit margins will be greatly reduced.

There is no doubt that the additional tariffs that began in September are indeed having an impact on our third-party sellers, but while we look at its negative impact, we must also consider whether this matter has any positive significance.

The positive significance and future direction of tax increase

The cost increase caused by the tax increase is real, and there are also sellers who decide to give up their Amazon business because they cannot accept this cost.

In this media survey , the proportion of sellers who have or are considering giving up doing business on Amazon has reached about 26% , which is equivalent to one in four people planning to give up.

At first glance, this seems to be a very depressing statistic, but from another perspective, as long as we can get through the tariff hurdle, the subsequent competitive pressure will be much less than it is now, after all, there will be one-quarter fewer competitors.

As for when we can get through this hurdle, Trump’s recent attitude is worth our consideration.

After a series of regrets, the total value of the tax increase categories implemented on September 1 was actually only about 100 billion US dollars, only one-third of what was claimed at the beginning (other categories were postponed to December 15, and you can contact me at the end of the article for the specific list).

At the same time, Trump also postponed the date of the tax increase by half a month, and revealed that "the possibility of signing a temporary agreement with China is not ruled out."

Because of the above actions by the United States, we have also resumed purchases of American agricultural products and temporarily excluded additional tariffs on bulk products such as pork and soybeans.

The signals sent by both sides now are very friendly, but because there are some principled issues on the trade agreement that cannot be compromised, and Trump is in urgent need of a political achievement to win votes for his election next year, I guess it is very likely that a temporary agreement with partial consensus will be reached in the end, and it will not be too late.

However, putting aside the results of foreign media surveys, there are still very few sellers around us who have given up the idea of ​​selling on Amazon, because most of them are influenced by us to take the high-profit boutique route, so that even if they bear the tariffs themselves, they will not lose money.

Also considering that some competitors may not be able to survive the tariffs, many sellers around us are optimistic about the Amazon market after the friction ends.

This attitude also fully demonstrates that high profit margins can really solve more than 90% of the problems, whether it is a national policy such as tax increase or a misoperation such as discount stacking, high profits can ensure that sellers will not lose money. I have collected a high-profit strategy package for everyone, please scan the QR code below to find me to get it~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

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