Amazon has quietly overhauled a key tariff policy, leaving customers and third-party sellers footing the bill for import fees—and sparking accusations of betrayal. The Street reports the e-commerce giant shifted liability for tariffs onto sellers, who are now passing costs to buyers through higher prices. The move, buried in updated terms of service, impacts thousands of imported goods, from electronics to furniture. Shoppers report sudden price hikes, while small sellers warn of bankruptcy. Is Amazon prioritizing profits over loyalty? From hidden fees to seller despair, here’s how the policy change unfolded—and why critics call it a “customer abandonment.”
The Tariff Policy Shift – What Amazon Changed
According to The Street, Amazon revised its "Fulfillment by Amazon (FBA)" terms in 2023, making sellers responsible for tariffs and import taxes previously absorbed by Amazon. Sellers importing goods to Amazon’s U.S. warehouses must now prepay tariffs or risk shipment holds. This policy, designed to offset Amazon’s rising logistics costs, forces sellers to either raise prices or absorb losses. Items like Chinese-made electronics, Italian leather goods, and Japanese cosmetics have seen price jumps of 15–30%. “Amazon sold us as partners, but now they’re squeezing us dry,” a Home & Kitchen seller told The Street.
Fallout – Customer Fury and Seller Revolt
The ripple effect is devastating. The Street notes that over 60% of Amazon’s marketplace consists of third-party sellers, many of whom lack the margins to absorb tariffs. As prices rise, customers flock to competitors like Walmart and eBay. “My favorite phone charger went from 12 to 12to18 overnight,” complained a Prime member on Reddit. Meanwhile, sellers are petitioning Amazon to reverse the policy, with some filing complaints with the FTC. Analysts warn the move could erode Amazon’s price competitiveness, a cornerstone of its dominance. “This isn’t just bad PR—it’s self-sabotage,” said RBC Capital’s Brad Erickson.
In conclusion, Amazon’s tariff policy pivot, as reported by The Street, underscores the precarious balance between corporate profit and customer trust. While the move may buffer Amazon’s bottom line, it risks alienating the sellers and shoppers who fueled its rise. For small businesses, the policy is a existential threat; for consumers, a betrayal of Amazon’s “customer obsession” mantra. As competitors pounce and regulators circle, the question isn’t just about tariffs—it’s whether Amazon’s market stronghold can withstand self-inflicted wounds. In the high-stakes world of e-commerce, even giants learn: loyalty is earned, not inherited.
Frequently Asked Questions:
Q: Why did Amazon change its tariff policy?
A: To offset rising logistics costs, shifting tariff liability to sellers (The Street).
Q: How are customers affected?
A: Prices for imported goods rose 15–30% as sellers pass tariff costs to buyers.
Q: Which products are hit hardest?
A: Electronics, luxury goods, and cosmetics reliant on overseas manufacturing.
Q: Can sellers avoid raising prices?
A: Some absorb losses, but many can’t due to thin margins, risking bankruptcy.
Q: Is Amazon reversing the policy?
A: No. The company claims it’s “standard industry practice,” per The Street.
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