• Higher tariffs on Chinese goods are causing some Amazon sellers to skip Prime Day.
• Many sellers plan to sell existing inventory at full price rather than offer discounts.
• Amazon's CEO anticipates rising prices for consumers due to these tariffs.
• Fewer sellers could result in limited discounted items for shoppers during Prime Day.
• The deadline for sellers to commit to Prime Day is May 23.

Amazon's Prime Day is facing a notable decline in participation from third-party sellers, particularly those importing goods from China, as many choose to opt-out or offer significantly fewer discounts this year. This strategic move comes in response to the 145% tariffs imposed by President Donald Trump, aimed at protecting profit margins during the ongoing U.S.-China trade war, according to multiple reports from Reuters, India Times, and South China Morning Post.

Among those opting out is Steve Green, an Amazon seller of bicycles and skateboards, who indicated that he is skipping Prime Day for the first time since 2020. He plans to hold onto inventory he acquired prior to the tariffs, selling at full price instead of offering discounts that would become unsustainable due to the increased costs of new imports, as stated by sources from Reuters and South China Morning Post.

Kim Vaccarella, CEO of Bogg Bag, reiterated similar sentiments, stating her company will also abstain from Prime Day and is redirecting efforts to sell remaining stock through retail partners like Macy’s and Dick’s Sporting Goods. She has paused production in China and is shifting manufacturing to Southeast Asia to mitigate the impact of tariffs, according to India Times and South China Morning Post.

According to analysts, the pullback by sellers could lead to fewer product discounts and less advertising revenue for Amazon. This outcome poses a risk to the overall success of Prime Day, an event that has historically been a significant revenue driver for the platform, especially since nearly 62% of units are sold by third-party vendors, based on data from South China Morning Post and Reuters.

CEO Andy Jassy mentioned that the company is strategically purchasing inventory earlier and renegotiating deals to keep prices low amid the tariffs. He noted an expectation that sellers may have to pass on costs to consumers by increasing prices, reflecting the challenging business environment, as reported in Reuters and South China Morning Post.