Amazon "self-rescue," putting pressure on merchants: requiring "double-digit price cuts"

Under the new round of tariff threats from Trump, e-commerce giants have entered emergency self-protection mode.

According to a report by the Financial Times on the 29th, Amazon has sought significant price cuts in the low double digits from home goods and consumer electronics suppliers, setting strict terms to protect its profit margins. This is an emergency measure taken by the tech giant to limit the damage caused by Trump's tariff policies.

“Amazon is the 800-pound gorilla in the room,” said consultant and former Amazon supplier manager Scott Miller:

“Brands have become dependent on this platform, with almost no alternatives.”

With Amazon's stock price down 14.8% this year, investors are closely watching the company's first-quarter earnings report to be released on Thursday. Goldman Sachs analyst Eric Sheridan stated that he is particularly focused on Amazon's third quarter, which typically hosts a 48-hour "Prime Day" promotional event for its subscription service members.

Amazon's Response: Stockpiling and Adjusting Procurement Strategies

Amazon is following the lead of competitors like Costco and Walmart by requiring suppliers to lower costs to mitigate the impact of tariffs on its profits. According to Goldman Sachs analysts, the varying tariff directions could reduce Amazon's operating profit by $5 billion to $10 billion this year, equivalent to a 6-12% loss.

Several logistics providers and analysts told the Financial Times that Amazon had already arranged for goods transportation in advance after Trump took office to guard against tariff increases.

Amazon CEO Andy Jassy stated in an interview with CNBC earlier this month that its online marketplace sellers might raise prices, but the company is negotiating with its suppliers to lower prices:

“In some cases, we have negotiated some deals, but they are not finalized yet, and we will renegotiate terms to make it easier for customers to access lower prices.”

Investors Focus on Quarterly Report and Prime Day

With Amazon's stock price down 14.8% this year, investors are closely watching the company's first-quarter earnings report to be released on Thursday. Goldman Sachs analyst Eric Sheridan stated that he is particularly focused on Amazon's third quarter, which typically hosts a 48-hour "Prime Day" promotional event for its subscription service members.

Prime Day is held twice a year in July and October, with last year's summer event generating $14.2 billion in revenue. However, this year, the discount levels for the event are expected to decrease Risk Warning and Disclaimer

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