Amazon cancels some inventory orders from China, looks at investing in US warehousing

[brettjet38]

Those 3rd party Chinese "tat" sellers are going to be in for the ride of a lifetime...

Good, maybe Buyers will be able to find things once the flood of Chinses **bleep** is pulled and weeded from the garden...

What percentage of products on Amazon are made in China?

70 percent

More than 70 percent of Amazon sellers and brands say they source their products from China, according to a survey conducted last year by Amazon seller software platform Jungle Scout. That origin number is well beyond that of second-place U.S. sourcing (30 percent) and third-place India (14 percent).

https://sherwood.news/markets/amazon-cancels-some-inventory-orders-from-china-looks-at-investing-in-...

Amazon canceled some of its inventory orders coming from China on Wednesday as the Trump administration’s 104% tariffs on the country took effect, according to documents seen by Bloomberg.

The online retail giant canceled orders for beach chairs, scooters, and air conditioners. The US imported nearly $440 billion worth of goods from China in 2024, including most of certain consumer goods like vacuums and baby carriages.

“While AmazonAMZN $186.88 (11.89%) sales seemingly felt little impact from 2018 China tariffs, the widespread (and much larger) 2025 global tariffs are a potential new ballgame for supply chains and costs,” Bank of America analysts wrote in a Wednesday note. The bank cut its Amazon price target from $257 to $225.

Bloomberg also reported that Amazon appears to be looking to make a $15 billion investment in expanding its domestic warehousing.

[brettjet38]

World

Chinese Amazon sellers to hike prices or exit U.S. market as tariffs soar, association says

'It'll be very hard for anyone to survive in the U.S. market,' head of e-commerce association says

https://www.cbc.ca/news/world/chinese-sellers-amazon-us-tariffs-1.7506519

Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to the "unprecedented blow" from President Donald Trump's tariff hikes, the head of China's largest e-commerce association said.

Trump said on Wednesday he would raise tariffs on Chinese imports to 125 per cent from the 104 per cent level already in effect, escalating the high-stakes confrontation between the world's two largest economies.

"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers.

"It'll be very hard for anyone to survive in the U.S. market," she told Reuters.

Some sellers are looking to increase prices in the U.S., while others are looking to find new markets, Wang said.

The tariffs will severely impact China's small enterprises and manufacturers and also rapidly accelerate the country's unemployment rate, she noted.

And the same thing will happen on eBay as the 3rd party sellers get a dose of reality...

[lotzofuniquegoodies]

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@brettjet38 wrote:

World

Chinese Amazon sellers to hike prices or exit U.S. market as tariffs soar, association says

'It'll be very hard for anyone to survive in the U.S. market,' head of e-commerce association says

https://www.cbc.ca/news/world/chinese-sellers-amazon-us-tariffs-1.7506519

Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to the "unprecedented blow" from President Donald Trump's tariff hikes, the head of China's largest e-commerce association said.

Trump said on Wednesday he would raise tariffs on Chinese imports to 125 per cent from the 104 per cent level already in effect, escalating the high-stakes confrontation between the world's two largest economies.

"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers.

"It'll be very hard for anyone to survive in the U.S. market," she told Reuters.

Some sellers are looking to increase prices in the U.S., while others are looking to find new markets, Wang said.

The tariffs will severely impact China's small enterprises and manufacturers and also rapidly accelerate the country's unemployment rate, she noted.

And the same thing will happen on eBay as the 3rd party sellers get a dose of reality...

---

@brettjet38 

One other component of this puzzle that seems to have been totally neglected is the parts that are required to service any of the other items that may need to repair or reuire replacement(previously made in China). Is someone going to going to come along in the USA, Canada or EU to make those parts....that are still required affordably? Probably not. Why alot of things have been made in China.....forever. Because they could be made cheaper there. Not congratulating China for their cheap labour. Just stating how it is. Until things can be made elsewhere more economically and supply chains get fixed getting the "stuff" we want, need or use in our daily lives cheaply this is going to be a nightmare. Not something that can happen overnight. It's also going to make it very challenging for EVERYONE selling anything used or obsolete in an outside foreign country to the USA to ship anything made in China. Unless we want everything to end up in a landfill or be forced to buy new from who knows where for 3 times the price even though that thingamajig still has life left in it. 

As a side tidbit....Reddet version attached because the CNN version is not available in Canada. Just so they could try to beat the impending tariff costs. 

https://www.reddit.com/r/technology/comments/1jv7qgs/apple_reportedly_flew_in_5_plane_loads_of_iphon...

[brettjet38]

This will also affect 3rd Party Sellers on eBay, get ready....

https://www.youtube.com/watch?v=gsBpGVb3b54

How Trump’s China Tariffs Could Shutter Amazon Sellers In The U.S.

Amazon sellers are reeling amid Trump's 125% (145%) tariffs on Chinese goods, telling CNBC they will need to raise prices and could go out of business.

Up to 70% of goods on Amazon are imported from China. Seven of the eight U.S.-based Amazon sellers CNBC talked to said that manufacturing in the U.S. isn't financially possible, despite tariffs. One positive: Trump did close a loophole that was helping direct-from-China sellers on Temu and Shein undercut U.S. seller prices. The "de minimis" exemption that allowed goods under $800 to avoid all taxes and duties will end on May 2.

[brettjet38]

Trump’s Tariffs Ruined China’s Master Plan

[reallynicestamps]

Bloomberg also reported that Amazon appears to be looking to make a $15 billion investment in expanding its domestic warehousing.

This feels a little backwards.

If the $800 de minimus/duty free allowance stays in place, and who knows if it will -certainly not Trump,  it would make more sense to warehouse in China and ship individually any item valued under $800.

But a warehouse  filling shipment would certainly surpass the de minimus.

The cost of shipping must be higher than the tariff, which would not surprise me.

[reallynicestamps]

Until things can be made elsewhere more economically

Chinese companies have been building factories in Vietnam (part of the PPT like Canada)  and in Africa or over a decade.

Your new "Chinese" air conditioner may be made in Kenya.

Which strengthens China's Belt and Road economic initiative, a plan to increase Chinese influence by increasing economic ties.
https://en.wikipedia.org/wiki/Belt_and_Road_Initiative

[brettjet38]

The Chinese meltdown...

[brettjet38]

U.S. Tariffs Hit China Hard, Foreign Trade Factories Face Mass Closures, Another Worse Crisis Erupts

April 15th 2025

...and some other news from China, its off topic, but is quite eye opening to say the least.

Chinese Tourist Shocks the World Again: Defecates in Japan’s Busy Street, Bites Crew on Flight

https://youtu.be/FdAkdO-_Leo?si=TAIg6KI98Yl3yvO2

[brettjet38]

And when we gave away our manufacturing to China all those decades ago, this is what they did with it...