Amazon sellers raise the prices of goods after China Trump's tariffs

Aaron Cordovez has been selling kitchen appliances for 10 years Amazon. Now it is in binding, because most of its products are produced in China.

Cordovez, co -founder of Zulay Kitchen, said that his company is moving “as soon as possible” to move production to India, Mexico and other markets, where more and more tariffs are growing President Donald TrumpBut they are mild compared to fees imposed on goods from China. He said that this process would take at least a year or two.

“We make our supplies last as long as possible,” said Cordovez We -Mail.

Zulay is too Temporary raising of the price of some of your dairy wreals, baking stick and other products. The popular kitchen strainer now costs USD 12.99, compared to USD 9.99, before Trump announced his tariff proposal at the beginning of this month.

Amazon Merchants are caressing the prices of everything from the bags for diapers and magnets of the fridge to the charm of necklaces and other best -selling items when they confront higher import costs. SmartScout SmartScout followed 930 products on Amazon, which recorded increased prices from April 9, with an average jump of 29% in terms, including clothing, jewelry, household items, office materials, electronics and toys.

In a statement for CNBC, Amazon spokesman called the theorem “sensational” and said that the research includes “a small fraction of objects in our store.” Amazon said that based on his opinion on research less than 1% of “studied subjects recorded a price increase.”

“We have not seen the average product sales prices change significantly except for typical fluctuations in hundreds of millions of items to Amazon,” he said. “And we still reach or overcome prices compared to other retail sellers on the vast majority of items.”

The trade war with China threatened to increase sellers on the external Amazon market, which accounts for about 60% of the company's online sales. Many merchants are based in China or involves the second largest economy in the world to obtain and collect their products.

Sellers are now dealing with a mystery of raising prices or eating additional costs associated with the new Trump tariffs. This is an existential threat to many sellers who have remained on thin margins and have been involved in the growing costs of Amazon related to storage, implementation, shipping and advertising with price pressure from increased competition for the last few years.

General Director of Andy Jassa said CNBC At the beginning of this month, the company “will try to do everything in our power” to maintain low prices for buyers, including renegotiating conditions with some of its suppliers. He admitted, however, that some third parties sellers “will have to transfer this cost” tariffs to consumers.

So far, the price of Amazon has dropped by 15%, moving with a wider market. The company reports earnings in the first quarter next week.

Goods imported from China are currently put on import goals of 145%, although Trump said Wednesday His administration “actively” talks with China about a potential contract on lower tariffs. Chinese officials On Thursday he refused Trade talks take place.

Scott Needham, company general, about 25% of prices observed by SmartScout were initiated by sellers based in China. Last week, the Ursteel stainless steel jewelry manufacturer raised the prices of four of its products by 6.50 USD, and the Chouyatou clothing brand raised the price of some dresses by 2 USD. Both companies are based in the Chinese province of Zhejiang.

Anker, the Chinese brand of electronics and one of the largest Amazon sellers, raised the prices of one fifth of its products sold in the USA, including portable energy bankwhich increased to USD 135 from USD 110, shows SmartScout data.

Representatives of Anker, Ursteel and Chouyatou did not answer the requests for comment.

Zulay, based in Florida, is one of many sellers from the US raising prices. The company also reduces costs. Cordovez said that he was forced to release 19% of the workforce and reduce online advertising by 85%.

Desert Cactus, based in Illinois, also takes action. Joe Stefani, the president of the company, wanted to transfer the production of some goods on the subject of his brand from China and to Mexico, India and Vietnam. Stefani said that about half of the desert cactus goods come from China, while the rest is made in the USA.

One of the company's best products is a configured license plate frame, which is produced in China. At the beginning of the first term of Trump in 2016, Stefani paid fees for import and shipping in the amount of 4% for license plates. He said that this rate increased rapidly to 170%.

“Tariffs cannot remain so high,” said Stefani. “There are so many people who simply do not intend to do it.”

Stefani said he expected the desert cacti to finally raise the prices of some products, although he is worried that buyers may be discouraged by a shock from the sticker.

“Will anyone be ready to pay 50 USD for Amazon hat?” Stefani said. “You know that it will be expensive on the pitch, but we don't know at Amazon.”

Dave Lada, co -founder of health and cosmetics Pure Daily Care, said that the price of the production of one of his skin care products in China increased to USD 25 from USD 10. He said that most Amazon sellers would not have a choice how to raise prices.

“If you were selling something for USD 40 and earn $ 7 or 8 at the end of the day, with these tariffs, these days have passed,” said the lady. “You can't do it anymore. It's unbalanced.”

Pure Daily Care plans to increase the price within a few weeks, and only on the products “absolutely we have to” so that Amazon algorithms before arranging it in search results or loss of a valuable purchase box, he said. They buy a field, which list appears first when the buyer clicks a specific product, and the one that will be purchased when touches “Add to cart”.

Amazon spokesman said the company prices are still in force.

“As always, sellers set their own prices and regularly monitor how we emphasize great prices as offered offers to provide clients with low prices in a wide selection,” said the spokesman in a statement.

The lady said that his company has enough stocks so that some products last up to six months, which aims to “stretch as long as possible” in the hope that China and the USA can achieve a trade agreement. The company also gives up some sales and discounts promotions, while expenses for some display and video ads stop.

As for his equipment, the lady said: “We can try to stretch this seven, eight, nine months, which buys us much more time for this thing to end, hopefully.”