Exclusive-Some Amazon Sellers Are Pulling Out of Prime Day Amid Trump Tariffs

Amazon's Prime Day is losing its luster among a critical group: sellers.

Some third-party merchants who previously sold China-made goods during Amazon's premier July shopping event are sitting it out this year or reducing the amount of discounted merchandise they offer.

The planned pullback, which hasn't been previously reported, is a way for sellers to protect profit margins amid the U.S.-China trade war triggered by steep tariffs placed by U.S. President Donald Trump on Chinese goods, according to four merchants and six consultants collectively advising hundreds of Amazon sellers.

Among them is Steve Green, who sells $230 bicycles and $60 skateboards from China on Amazon's online marketplace. Green said he's skipping Prime Day for the first time since 2020.

He's holding back merchandise he imported before Trump's tariffs took effect on April 9, to sell later at full price. The China tariffs, which stand at 145%, will more than double his costs of goods on newly imported merchandise, making it "unaffordable," he said.

Similarly, Kim Vaccarella, chief executive of China-made tote bag company Bogg Bag, also decided to skip Prime Day this year, to retain some of her unsold U.S. inventory, which she hopes to sell at Macy's Bloomingdale's, Dick's Sporting Goods and smaller, independent shops, at full price or for smaller discounts. She's halted production of China-made Bogg Bags, which sell for $70 to $200 on Amazon, while she works to move manufacturing to Cambodia and Vietnam.

Prime Day has traditionally been one of Amazon's biggest shopping events of the year, behind Black Friday and Cyber Monday, respectively. And while participation is optional, Amazon spends millions promoting Prime Day on television and social media ads, telling sellers that they will benefit from a halo effect by getting their merchandise in front of a larger audience of shoppers. Amazon has around 200 million Prime subscribers worldwide.