Amazon cancels some inventory orders from China after tariffs

Amazon.com Inc., according to people familiar with Bloomberg and a document reviewed by Bloomberg, canceled orders for multiple products made in China and other Asian countries, and claimed that the company has reduced the exposure of tariffs given by President Donald Trump.
People, Trump on April 2, including China, Vietnam and Thailand, including more than 180 countries and regions plans to get a tariff after the announcement of the beach chairs, scooters, air conditioners and other products, he said. The timing of non -warning cancellations has led to suspect that sellers were a response to tariffs.
An Amazon spokesman refused to comment. The company set international trade disputes as a risk factor in its annual report published in February. “China -based suppliers offer significant parts of our components and finished products,” the company said.
It is unclear how widespread the cancellations and how many kinds of goods affect.
A seller selling beach chairs in China, a seller made to Amazon for more than a decade, said he had canceled some of the purchasing orders he placed from the company last week and instructed them not to send them to the seller. E -Posta examined by Bloomberg did not mention the tariffs.
The seller said that after the chairs have already been produced, the $ 500,000 wholesale order was mixed and that he left this person in a hook to pay the factory and find other buyers. Amazon’dan because of the fear of retaliation due to anonymity, the seller, the company never canceled one of the orders of the company, he said.
Scott Miller, a former Amazon vendor manager who is currently working as an e-commerce consultant, said Amazon has canceled the order of goods made in China and other Asian countries from several customers. He said that the cancellations came without warning and that he could force sellers to re-negotiate with the e-commerce company.
Miller, the founder and CEO of PDPlus in Minneapolis, said, “Amazon is really holding all the cards,” he said. “The only real recourse of the sellers is to sell these inventory in other countries in lower margins or to work with other retailers.”
The beach chair seller and Miller said that Amazon canceled “direct import orders ,, and that Amazon bought inventory wholesale in the country where he was built and sent products to his warehouses in the United States. Amazon serves as a record importer for orders, that is, pays tariffs when the products reach US ports.
Amazon has been importing elements for years as a way to reduce costs, because the Amazon can often use collective transportation rates to import products at lower costs than sellers. If canceling these orders imports goods to the United States in other ways, it puts the tariff exposure back to the sellers.
Amazon purchases products directly from sellers. It accounts for approximately 40% of the products sold on the website. The rest of the company is made by independent traders who rent a digital shelf area from Amazon and pay the company’s logistics and advertising fees.
Trump has tariffsrattlingGlobal markets. Many businessesupgradePrices, stop the fears of stagnation. On Tuesday, Robert W. Baird & Co. Inc., in a research note, indicating the effects of tariffs, reducing 2025 revenue forecast for Amazon. The company’s shares fell approximately 21% this year compared to the 15% drop of S&P 500.
This story initially took part in Fortune.com