Tariffs Push Sellers to Exit Amazon Prime Day 2025

Recently, international media reported that a number of third-party sellers—traditionally active participants in Amazon Prime Day selling China-made goods—plan to withdraw from this year's Prime Day or significantly reduce the number of discounted listings.

According to four sellers and six consultants (who collectively advise hundreds of Amazon merchants), this trend is accelerating. The primary reason is the high tariffs imposed by U.S. President Donald Trump on Chinese imports, forcing sellers to adjust in order to preserve profit margins.

One seller, Steve Green, who sells China-made bicycles and skateboards on Amazon priced at $230 and $60 respectively, shared that last year he spent between $200 and $500 on Amazon fees during Prime Day, and offered discounts totaling $3,000 to $5,000. However, due to the dramatic increase in costs from new tariffs—doubling the cost of imported inventory—he has decided not to participate in this summer's Prime Day. Instead, he plans to hold inventory and sell at full price before low-value duty exemptions expire.

Similarly, Kim Vaccarella, CEO of Bogg Bag, has also chosen to skip this year's Prime Day in order to preserve inventory for full-price or modest-discount sales at U.S. retailers like Macy's, Bloomingdale's, Dick's Sporting Goods, and select independent stores. The company has paused production in China and is now working to shift its supply chain to Cambodia and Vietnam. Bogg Bag's tote bags typically sell on Amazon for between $70 and $200.

Amazon consultants report that some of their clients haven't even begun preparing for Prime Day due to ongoing tariff-related adjustments, while others are scaling back discounts significantly.

Amazon Prime Day 2025 is expected to remain one of the year's most significant shopping events, second only to Black Friday and Cyber Monday. With roughly 200 million Prime members worldwide, Amazon spends millions each year on TV and social media promotion. Sellers often leverage Prime Day to reach a broader consumer base. While Amazon hasn't announced this year's official date, Prime Day is expected to take place over four days in July.

According to one seller consultant, the deadline for sellers to opt into Prime Day participation is May 23. If large numbers of third-party sellers withdraw, Amazon may see a drop in both referral fees and ad revenue, as well as a decline in the number of available deals. Traditionally, Prime Day generates strong sales and attracts new Prime subscribers, who pay $14.99 per month or $139 per year.

Rick Sliter, CEO of MedCline, which sells therapeutic pillows made in China and Vietnam for $250 on Amazon, also expressed doubts about offering discounts this year despite achieving sevenfold sales during last year's Prime Day, citing tariff-related concerns.

Michael Slate, head of KitchenEdge—a home goods company that usually begins preparing in spring for Prime Day—stated that uncertainty has made it impossible to commit to a 20% discount without knowing future costs.

The steep discounts of Prime Day often compress seller profits. Most Amazon sellers net about 15–20% profit after deducting product costs and platform fees. Additionally, Amazon charges a 15% referral fee per item sold, and to highlight deals during Prime Day, sellers must pay extra—for example, $1,000 to label a product as a “Best Deal” or $500 for a “Lightning Deal.”

It's worth noting that not all products sold on Amazon are from third-party sellers. Amazon has direct purchasing relationships with some vendors—such as Hasbro toys—many of which are also manufactured in China.

Amazon CEO Andy Jassy stated that the company is engaged in “strategic forward-buying” and renegotiating procurement terms to maintain low prices under tariff pressures. He expects sellers to pass some of the increased costs to consumers through price hikes. According to several consultants working with Amazon suppliers, Amazon has begun surveying major suppliers and third-party sellers about how tariffs are impacting their operations.

According to research by e-commerce data firm Marketplace Pulse, third-party sellers accounted for nearly 62% of Amazon's sales volume in Q4 2024. In addition to pulling out of Prime Day, some sellers are also experimenting with price increases, cutting back on ad spend, or importing goods in staggered shipments to mitigate tariff-related challenges.

As Amazon Prime Day 2025 approaches, sellers continue to weigh participation against rising costs and shrinking margins under the shadow of import tariffs.