Amazon is having a rocky week. Despite strong first quarter earnings, the company is facing an exodus as third-party sellers pull out of Prime Day amid tariff concerns, Reuters reports.
“Nearly all my clients are pulling back in Prime Day deals,” John Elder, a consultant for 100 Amazon sellers, told the news outlet.
Some of the third-party sellers skipping Prime Day include KitchenEdge, Bogg Bagg, and MedCline.
Amazon has yet to announce dates for Prime Day 2025. The mega-sale typically happens in July. Sellers have until May 23 to decide it they want to participate.
Amazon made a record $14.20 billion from last year’s Prime Day, up from $12.70 billion in 2023. The company is having a “strong response from selling partners” for Prime Day 2025, a company spokesperson told Reuters.
Though Amazon has direct relationships with merchandisers, third-party sellers make up more than half of its revenue. The company charges sellers 15% commission, plus advertising fees. Sellers can pay $500-$1,000 to have their deals advertised during Prime Day, per Reuters.
Over 70% of products sold on Amazon come from China. The Trump administration announced 145% tariffs on imports from China last month.
Earlier in the week, Amazon pulled back on implementing tariff pricing after criticism from the Trump administration. According to CNN, a furious Trump called Amazon founder, Jeff Bezos.
“Of course he was pissed,” an anonymous official told CNN. “Why should a multi-billion dollar company pass off costs to consumers?”
Trump’s tariff’s will result in rising costs for consumers and supply chain issues.
Amazon claims they were only “considering” showing import fees for Amazon Haul, a cheaper section of the e-commerce site. Tariff pricing was “never approved and not going to happen,” the company clarified to CNN.
Amazon’s net revenue increased 9% to $155.7 billion in the first quarter the company revealed in an earnings report on Thursday. The company’s operating income increased to $18.4 billion in the first quarter, compared with $15.3 billion in first quarter of 2024.
“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” said Amazon president and CEO Andy Jassy.
Amazon’s second-quarter operating income is expected to fall between $13 billion and $17.5 billion, below the $17.64 billion forecast, CNBC reports.
The e-commerce giant has faced customer boycotts since rolling back DEI policies late last year. Amazon has also faced boycotts from its own employees over work conditions and pay rates.
Despite better-than-expected Q1 earnings (up from $143.3 billion in first quarter of 2024), Amazon’s stock dipped 4% after the report was released. Amazon stock is down 14% for the year.
Bezos, who founded Amazon in 1994, donated $1 million to the Trump’s inauguration in January.
America’s wealthiest tech billionaires, who donated millions to Trump’s inauguration, have lost $194 billion during his first 100 days in office. According to Yahoo! Finance, Bezos has lost $45 billion.
Season 9 