When I shop on Amazon these days, I sometimes notice the sticker shock on some items. That protein powder I grab monthly, or the Christmas cards I like to buy, seem to be more expensive than last year.
According to a recent AOL report, prices on a sample of 50 products rose 4.2% in the three weeks after the latest tariff announcements in April, higher than similar bumps at Walmart and Wayfair.
Shoppers feel it, sellers deal with it, and people want to know who is to blame. Sure, tariffs grab the headlines, but there is more at play here, and I thought it would be interesting to unpack it. In this post, I will walk through the tariff piece, why Amazon is not breaking out those costs on product pages like rumors said they would, and the other pressures building up in the background. Spoiler: It is not just tariffs, but a more complex mix of economics and platform shifts.
Why Amazon Is Not Listing Tariff Costs Separately
Rumors say that Amazon briefly thought of breaking down import charges right on product pages in its low-cost Amazon Haul store, but they scrapped it fast.
A company spokeswoman explained that the proposal was considered but never approved, and it is now off the table entirely. Backslash came directly from the White House, with press secretary Karoline Leavitt calling it an hostile political move by Amazon. Breaking out tariffs would show the China connection, especially since about 25% of Amazon’s non-grocery goods come from there. It risks alienating shoppers and regulators, and Amazon is playing it neutral, letting the total price speak for itself.
Jassy acknowledged the economic reality without endorsing giving more visibility to the breakdown, and explained that sellers in various countries simply cannot eat 50% extra costs. Not breaking down the cost of tariffs keeps the focus on the end price, but it hides how complex the increases really are.
Tariffs and Inflation, Obviously
Tariffs are the elephant in the room. The long story about duties on Chinese imports, up to 145% at some point, caused serious damage to businesses’ supply chains. Amazon itself even canceled some orders for China-made items. A Reuters analysis found that prices on over 1400 Chinese products increased a median 2.6% from January to mid-June, accelerating in May as the tariffs hit. Home and furniture prices increased 3.5%, electronics 3.1% in that timeframe.
Let’s not forget inflation: the U.S. Consumer Price Index for core goods increased 2.8% year-over-year through May, and by up to 3% by September. Amazon prices seem to be increasing faster than national average, with third-party sellers pricing rising an average 6.7% from late 2023 to late 2024. Sellers are not just reacting to tariffs, they are considering the cost of raw materials, shipping delays, and more generally cost-of-business/cost-of-living squeeze. That is one of the reasons why even US-based items are more expensive, not just Chinese goods.
Amazon Fees and the Buy Box Squeeze
When I say that the cost of doing business is increasing for sellers, part of it comes from higher Amazon fees. FBA and referral fees remained stable in 2025, with no new types introduced, as announced in late 2024. However, Multi-Channel Fulfillment (MCF) fees increased by an average of 3.5%. For example, MCF pick-and-pack rates for standard-size items rose by a few cents per unit compared to 2024.
Peak-season storage surcharges, from October through December, also became significantly higher. Monthly storage fees for standard-size items increased from about $0.78 per cubic foot in the off-season to around $2.40 per cubic foot during peak months. Long-term storage surcharges rose as well, reaching up to $6.90 per cubic foot or $0.15 per unit for inventory stored over 365 days, whichever is greater, based on Amazon’s updated aged-inventory policy. We can also expect additional fee increases in 2026, as announced by Amazon in late 2025.
Then there is the Buy Box algorithm, which has often been controversial among sellers, and prompted the FTC to file an antitrust lawsuit in September 2023, alleging it creates an “artificial price floor” by punishing competitors for lower off-Amazon pricing. As of today, Amazon seems to still heavily weigh the lowest price. Sellers might be losing the Box despite fast shipping and strong metrics, because even a one-cent edge from a competitor locks it in. With the rise of other channels, like Walmart Marketplace or maybe one day Agentic commerce, sellers will care less about Amazon’s low-price pressure and decide it isn’t worth it on some less critical SKUs.
The China Tax Reporting Effect
One factor that went under the radar, but could potentially have a massive impact, is Amazon’s new quarterly tax reporting to Chinese authorities, rolled out this year. Starting with the first submission due October 31 for July through September data, Amazon now shares seller identities, transaction volumes, revenues, and commissions with Beijing under State Council mandates. This shuts down some tax gray areas, and should deter some sellers from under-reporting revenues.
Chinese sellers make up more than 50% of Amazon’s top accounts, including 57 % of those hitting seven figures or more per year. While Amazon handles the reporting to make it easier administratively, this may increase compliance costs for some sellers, potentially causing them to increase prices to build buffers to cover for audits or increases taxes.
Conclusion
These factors, from tariffs to tax reporting and fee changes, will definitely have an impact on price. Amazon’s decision to bundle costs keeps shopping friction low, but it leaves us guessing what are the real forces behind each price hike. For sellers, it is a reason to review every fee line, diversify channels, and price with data rather than reaction.
Now what can we expect for the holidays? If these pressures keep stacking up, holiday pricing on Amazon could be rough on our wallets. Based on Adobe’s forecast, online sales could still increase to $253B for November-December (up 5.3% Yoy), but with tariffs pushing 3-5% hikes on China-heavy categories like toys and electronics, peak surcharges, and close to double digits out of stock rates, I believe prices will be significantly higher than last year. Shoppers might rely on buy now, pay later to stretch budgets, but the bill may be painful for sellers and customers alike.
https://www.aol.com/amazon-says-wont-list-tariff-173036194.html
https://www.helium10.com/blog/amazon-fulfillment-fees-updates/
https://www.marketplacepulse.com/articles/100000-million-dollar-amazon-sellers
Leave a Reply