Overview
- CEO Andy Jassy said at Davos that some third-party sellers are passing higher import costs to shoppers, while others are absorbing part of the hit.
- Amazon is working to keep prices low, yet thin retail margins mean some increases are unavoidable when costs rise about 10%.
- The comments mark a shift from last year, when Jassy said prices on the platform had not appreciably increased after the tariff announcements.
- Customer demand remains generally resilient with strong bargain-hunting, though hesitation is growing on higher-priced discretionary items.
- Amazon shares fell about 2.7% in early trading as tariffs drew fresh attention from global leaders and U.S. politics ahead of the midterm elections.