Amazon News: Chinese Sellers on Amazon to Hike Prices or Exit US as Tariffs Soar

In This Article

• Amazon News Says Chinese Vendors are Hiking the Price
• How are Tariffs Affecting Amazon’s Business?

On April 2, when President Donald Trump announced the plan to levy tariffs on more than 180 countries, the business and finance situation was disturbed around the world, and it also affected the famous e-commerce platform Amazon. China is among the countries that are the most impacted by these heavy tariffs, and on Amazon, the sellers from China are hiking their products’ prices or are otherwise willing to leave the platform.

China and other Asian countries are not happy with this sudden enhancement of tariffs, and Chinese sellers are also cancelling orders in response to the situation. On April 9, Bloomberg posted the report on the high numbers of order cancellations. Although the vendors do not mention the tariffs as the reason for the cancellation, the pattern, dates, and other factors clearly show the cause.

Since the announcement, the tariffs have been a big issue around the globe and are affecting every sector. On Amazon, this is not only disturbing the whole business, but the sellers are more likely to leave the US platform as a reaction to this huge step. Yet, it seems that the US government has deliberately taken this step and is not going to reverse it.

Amazon News Says Chinese Vendors are Hiking the Price

China is one of the most remarkable countries working on a large scale on Amazon and generating large revenue. Half of the Amazon sellers are from China, and more than 100,000 Amazon businesses are registered in the country, so disturbing the orders or price overall has a huge impact on the Amazon business.

According to the report from SmartScout, the e-commerce service provider, China annually generates $35.3 billion, and if it is going to leave the platform, this will create a problem for Amazon. Not only Amazon but other e-commerce platforms like Temu and Shien are also affected for the same reason because China has major product manufacturing.

According to the China Manufacturing Council’s data, the imports and exports from China to other countries reached $358 billion in the previous year. Before this, the tariffs were 104% and according to the current announcement, they will be raised to 125%, creating a confrontational situation between two superpower countries.

Wang Xin is the head of the Shenzhen Cross-Border E-Commerce Association, representing 300 sellers on Amazon, and says about the current situation:

This isn’t just a tax issue; it’s that the entire cost structure gets entirely overwhelmed

He also added,

It’ll be very hard for anyone to survive in the U.S. market. So for all of us in the cross-border e-commerce business today, this is truly an unprecedented blow.

How are Tariffs Affecting Amazon’s Business?

Many of the vendors from China have raised their prices, cancelled the current orders without any notification, or even searched for new platforms outside the US to avoid the heavy tariffs. Till now, Amazon is one of the biggest marketplaces, earning a lot of revenue from sellers around the world.

The major reason behind the popularity of the platform is its remarkable performance for security, services around the globe, huge price range options, and the use of the latest technology like artificial intelligence to show the right product to the right buyer.

Similarly, artificial intelligence is also making the other web solutions intelligent and automated, and the business owners take the help of AI expert companies like Weborik Hub to get the intelligent features in their apps.

But the US tariffs are now collapsing the small or medium-sized businesses for the Asian companies, and China is the most affected. Similarly, the US itself is facing huge problems because of this announcement, as no other company can even come close to the consumption rate of the US, but the products come from the whole world, and with these taxes, countries will be unable to supply the goods at the same rate

.

Chinese vendors hiking the price of their product on Amazon are making the step to overcome the current changes made in the tariffs, but as soon as they find a better platform outside the US, they are going to leave Amazon.