Amazon sellers are preparing for tariffs with increased stock, but long-term challenges remain.

From Yahoo Finance: 2025-05-02 02:03:00

Amazon is working with sellers to avoid tariffs, but concerns remain about price increases. Analysts predict struggles as inventory runs out and prices rise. Tariffs could set back Apple and Amazon, affecting consumer-focused companies. Amazon’s stock dipped, as did Apple’s, with potential added costs from tariffs. AWS cloud profits disappointed investors in the first quarter.

Investors had high expectations for cloud businesses, but Amazon’s AWS performance lagged behind Microsoft’s Azure. Pain looms for Amazon as de minimis ends, impacting third-party sellers. Some sellers may sit out major sales events. Third-party seller revenue growth halved, with a quarter of Amazon’s revenue. Amazon’s outlook for profitability fell short, with uncertainty about absorbing impacts of tariffs. The worst impact is expected in Q3 and Q4, with uncertainty about long-term strategies.

Read more: Analysis-Amazon sellers are stocking up in the face of tariffs, but it’s a short-term fix