{"id":4276,"date":"2025-04-23T14:58:37","date_gmt":"2025-04-23T14:58:37","guid":{"rendered":"https:\/\/friscotimes.org\/?p=4276"},"modified":"2025-04-24T19:44:16","modified_gmt":"2025-04-24T19:44:16","slug":"exclusive-amazon-is-no-longer-penalizing-some-top-sellers-for-raising-prices-aggressively-amid-u-s-china-tariff-war","status":"publish","type":"post","link":"https:\/\/friscotimes.org\/?p=4276","title":{"rendered":"Exclusive: Amazon is no longer penalizing some top sellers for raising prices aggressively amid U.S.-China tariff war"},"content":{"rendered":"\n

Some top Amazon sellers recently got an unexpected shock after increasing their prices to offset added costs from President Trump’s tariff war: The online retailing giant penalized their listings. <\/p>\n

But this week, several of those same top sellers told Fortune<\/em> that Amazon seems to have reversed itself\u2014and is now letting them raise prices, without penalty, by as much as 25%.<\/p>\n

“Something happened,” said the CEO of a home furnishings brand that sells $50 million to $100 million of merchandise annually on Amazon. “[W]e got almost all of our Buy Boxes back.”<\/p>\n

These penalties had involved Amazon removing \u201cAdd to Cart\u201d or \u201cBuy Now\u201d buttons on merchant product pages, which most Amazon shoppers use to make purchases. Among Amazon sellers, this is known as \u201closing the Buy Box\u201d or \u201csuppressing the Buy Box,\u201d and it means that shoppers must take extra steps to buy what they want. It can torpedo a product\u2014and, in turn, a seller if such an item is among their main revenue drivers. <\/p>\n

Historically, Amazon\u2019s reasons for suppressing the Buy Box have ranged from protecting customers from price-gouging, to trying to pressure sellers or brands to lower their price on Amazon to match pricing on that merchant’s own website or a competing retailer\u2019s shopping site. The latter strategy is a central point of contention in the Federal Trade Commission\u2019s ongoing antitrust case against Amazon. <\/p>\n

But according to the sellers who spoke to Fortune <\/em>last week, the penalties in question were being imposed even when a seller\u2019s increased price on Amazon was the same as on their own website and any competitor sites, and when the seller owned the product brand. Amazon gave sellers no reason for being penalized, but many assumed it was because they had raised prices by a relatively large amount. <\/p>\n

Those impacted had complained that the penalty was unfair because, without substantially raising prices, they stood to take a significant financial hit. And with the penalty, their businesses were similarly hurt. <\/p>\n

In the case of the home furnishing CEO, his firm had abruptly lost the Buy Box on a wide assortment of products after raising prices around 20% on average following the Trump Administration’s new 145% tariffs on many Chinese imports. This came despite the company being the brand owner of the products and the only one selling them on Amazon.<\/p>\n

But as of Monday, the Buy Box returned for most of those items, even with the same price hikes of around 20%, said the CEO, who, like others interviewed who sell on the site, requested anonymity for fear of retaliation from Amazon. <\/strong>The CEO said Amazon didn’t give this company any reason for lifting its penalty.<\/p>\n

Two other top Amazon sellers who had their Buy Boxes suppressed last week told Fortune<\/em> on Monday and Tuesday that Amazon was no longer suppressing their listings despite price increases of as much as 25%. They, and the other brand CEO, suggested that Amazon may have lightened up in response to Fortune<\/em>‘s original reporting on the issue last week. But it’s unclear if that is the case.<\/p>\n

Amazon spokesperson Jessica Martin did not directly address the seeming about-face\u00a0on penalties for the handful of sellers\u00a0Fortune\u00a0<\/em>interviewed, but said Amazon’s pricing policies haven’t changed nor the way the company determines how products become eligible\u00a0for\u00a0the Buy Box, now known inside Amazon as the “Featured Offer.”<\/p>\n

“[S]ellers set their own prices, and we regularly monitor how we highlight great prices as Featured Offers to provide customers with low prices across a wide selection,\u201d she said in a statement.<\/p>\n

The penalties were lifted a week and a half after Amazon CEO Andy Jassy had addressed the impact of higher tariffs in China on Amazon sellers. In an interview on CNBC<\/a>, he said he thought Amazon sellers would try to \u201cpass that cost on\u201d to customers and that he would understand if they did so.<\/p>\n

The situation is a tricky one for Amazon. Allowing sellers to raise prices as they see fit could allow some price-gougers free rein, while also risking shoppers directing their ire at Amazon over drastic price increases.<\/p>\n

But for sellers who manufacture their products in China, or import key materials from there, price increases often serve as the most immediate\u2014and legal\u2014solution to rapidly-increasing importing costs.<\/p>\n

Some Chinese suppliers have offered to help U.S. Amazon sellers evade much of the tariff cost increases, but using illegal methods, as Fortune<\/em> reported. Others are being pitched on “transshipping” tariff evasion\u2014essentially shipping their goods from China to lower-tariff nations, where they would be repackaged and incorrectly labeled as having come from a country other than China. Still other merchants are considering a move known as “substantial transformation,” by which they still source some key materials or parts from China, but then make a substantial enough change to the goods in another low-tariff country so that the latter nation becomes the country of origin for the merchandise.<\/p>\n

It’s a fluid situation for brands and merchants and now it seems, at least for some, price increases on Amazon are back on the table.<\/p>\n

Update, April 24, 2025:\u00a0<\/em>This article has been updated with a comment from Amazon.<\/p>\n

Are you a current or former Amazon employee or seller with thoughts on this topic or a tip to share? Contact Jason Del Rey at <\/em>jason.delrey@fortune.com, <\/em>jasondelrey@protonmail.com, or through messaging apps Signal and WhatsApp at <\/em>917-655-4267. You can also contact him <\/em>on LinkedIn<\/a> or at <\/em>@delrey<\/a> on <\/em>X, @jdelrey<\/a> on Threads, and<\/em> on Bluesky<\/a>.<\/p>\n

This story was originally featured on Fortune.com<\/p>\n\n","protected":false},"excerpt":{"rendered":"

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