Dozens of Amazon sellers have petitioned Amazon to adjust its buy box policies, arguing that current pricing pressures, exacerbated by tariffs, leave them with little control over pricing. Winning the buy box is crucial for visibility and sales, but Amazon's algorithm prioritizes the lowest price, leaving sellers unable to easily increase prices to offset tariff costs.
The petition highlights the difficulties faced by sellers who source goods from countries affected by tariffs. Many are removing products from sale rather than sell at a loss, highlighting the immediate impact on their businesses.
Several strategies adopted by sellers include:
Amazon's response has been to point to an existing blog post explaining its buy box selection process and to acknowledge that sellers may have to pass the cost of tariffs on to customers.
While Amazon representatives declined to comment directly, Amazon CEO Andy Jassy indicated that sellers will likely pass on the increased tariff costs to consumers. Bloomberg also reported that Amazon canceled some orders from China and other Asian countries following the imposition of tariffs, further illustrating the impact.
The situation reveals the complex interplay between global trade policies, e-commerce platforms, and the pricing power of individual sellers. The petition underscores the call for greater flexibility and control for sellers navigating the challenges of fluctuating tariffs and Amazon's buy box algorithm.