Global Amazon Sellers Hurt By China Tension
Sellers on global e-commerce behemoth, Amazon, are reportedly feeling the pain of strained US-China trade tensions, wrestling with rising costs from tariffs, plus significantly lower sales.
According to Bloomberg, Amazon merchants around the globe are struggling to navigate the trade war, intensifying after President Trump’s latest US$300 billion of tariffs.
“Companies of all sizes throughout the supply chain are adjusting to increased costs resulting from new tariffs,” Amazon reportedly said to Bloomberg.
The news comes as sellers also seek to order stock for the coming Christmas and holiday season.
Smaller companies are said to be hurt significantly harder than larger counterparts, feeling the effect of shifting production to other countries, plus piling inventory.
Analysts claim the currently political climate poses notable risks for Amazon sellers.
Commentators claim Amazon itself could also soon feel the pain of trade tensions, notching lower fees and commissions.
Many Amazon sellers are reportedly moving their sourcing and manufacturing from China to India and Southeast Asia long-term, in a bid to prevent being hit similarly again.
For some merchants, however, the cost of moving production away from China is too high, and not feasible.
The news comes as Amazon Australia continues to ramp up its local presence, with its mid-year sale currently in play.
The e-commerce giant has continued to take on traditional retailers, however, commentators claim there’s still some way to go before price competition becomes a real threat.