Amazon CEO Acknowledges Tariff Impact on Product Pricing, Self-Operated Sellers May Face Price Pressure

[Ebrun Exclusive] On January 23, Amazon CEO Andy Jassy stated during the World Economic Forum in Davos that as sellers gradually absorb the cost pressures from U.S. tariff hikes, signs of price increases have begun to emerge on Amazon's e-commerce platform.

This marks the first time Amazon has publicly acknowledged that tariffs are having a tangible impact on its pricing system.

In an interview, Jassy noted that Amazon anticipated the potential impact of tariff policies as early as the beginning of last year and stockpiled inventory accordingly, while urging third-party sellers to prepare their inventories in advance to avoid potential increases in shipping and procurement costs. However, these pre-stocked inventories were largely depleted by last fall. As new rounds of restocking take place, the effects of tariffs are gradually being reflected in the cost of goods and final selling prices in the U.S. market.

"We've started to see some of the tariff impact seep into prices," Jassy said. He highlighted that sellers' coping strategies vary significantly: some are passing the additional costs on to consumers, some are absorbing the costs to maintain sales volumes, while others are adopting a balanced approach. He emphasized that the impact of price increases is particularly pronounced among self-operated sellers, and this trend is becoming increasingly clear.

Despite the price pressures, Jassy believes the overall U.S. consumer market remains resilient. Consumers continue to shop and actively seek value-for-money products but have become noticeably more cautious when it comes to higher-priced non-essential purchases.

"Overall, Amazon's consumer base remains in good shape, but we need to closely monitor developments through 2026," he said.

Jassy also pointed out that Amazon is working closely with its distributors and sales partners to keep product prices at the "lowest acceptable level for consumers." However, he acknowledged that retail margins are inherently thin, with industry operating margins typically in the mid-single-digit range.

"If overall product costs rise by 10%, there is very little room for internal absorption," he noted.

In fact, these remarks somewhat contradict the signals Amazon has been sending over the past year.

Previously, Amazon repeatedly downplayed the impact of tariffs on consumer behavior and product prices, stating that the company was mitigating external challenges and protecting consumer demand by expanding product variety, improving fulfillment efficiency, and shortening delivery times.

It is worth noting that Amazon may also face potential administrative pressure regarding product pricing.

Last April, Amazon clashed with the Trump administration. Reports at the time suggested that Amazon was exploring the possibility of separately labeling "tariff costs" on product prices in the U.S. market, prompting criticism from the White House, which called the move "hostile and politicized." Amazon later responded that the proposal was never internally approved and would not be pursued.

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