""So you start to see some of the tariffs creep into some of the prices, some of the items," said Jassy, "And you see some sellers are deciding that they're passing on those higher costs to consumers in the form of higher prices, some are deciding that they'll absorb it to drive demand, and some are doing something in between.""
""At a certain point, because retail is, as you know, a mid-single digit operating margin business, if people's costs go up by 10%, there aren't a lot of places to absorb it," Jassy added. "You don't have endless options.""
""In June 2025, Jassy told CNBC in an interview that many of Amazon's third-party selling partners "forward deployed a lot of inventory" to avoid "issues with the uncertainty around where tariffs are going to settle," adding that at that point""
Vendors are running out of inventory imported ahead of tariff increases, causing tariff-driven costs to begin appearing in retail prices on Amazon. Some sellers are passing higher tariff costs to consumers, some are absorbing them to sustain demand, and others are adopting intermediate approaches. Amazon aims to keep prices low but has limited ability to absorb large cost increases because retail typically operates on mid-single-digit operating margins. Amazon primarily serves as an ecommerce platform for independent sellers and cannot directly control third-party pricing. Forward-deployed inventory delayed price impacts, but those buffers are now thinning.
Read at Business Insider
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