Amazon ‘most exposed’ to China tariffs
Amazon could be among the e-commerce retailers most affected by new tariffs on imports from China.
Morgan Stanley shared that roughly 25% of the cost of products directly sold by Amazon comes from China. These items, called first-party merchandise (1P), accounted for 37% of Amazon’s total e-commerce sales as of 2022, while third-party (3P) made up 63%. Additionally, China-based sellers represent nearly ~50% of the top 10,000 sellers on Amazon in the U.S., which means a more significant portion of Amazon’s products could be impacted.
Other e-commerce retailers have some exposure, too. Fashion retailer Revolve had the second-highest exposure in the cohort, with 22%, while Peleton, Etsy, and Figs are estimated to have less than 3% of direct exposure.
Amazon and 3P sellers are expected to eat some of the costs and pass the rest onto consumers, which could result in a mid-single-digit percentage increase. So, it’s relatively minor on a per-consumer basis but something to watch going forward as Trump has already demonstrated he will leverage tariffs as a negotiation chip with China and other countries like Mexico and Canada.
