Overview
- Speaking at Davos, CEO Andy Jassy said Amazon and many third-party sellers burned through stockpiles built before the tariffs, exposing more items to higher import costs.
- Sellers are taking varied approaches, with some passing costs to shoppers, others absorbing them to sustain demand, and many splitting the difference.
- Amazon is working to keep prices low but warns that single-digit retail margins limit how much of the increases it can absorb indefinitely.
- The remarks mark a shift from Jassy’s June comment that Amazon had not seen appreciable price increases tied to the tariffs.
- Walmart, Target and Home Depot have reported similar pricing pressure, and Fed survey anecdotes point to planned increases as consumers trade down to cheaper options.