BuyBox Experts Warns Amazon Sellers of Impact from Chinese Tariffs
Industry: Retail & eCommerce
Amazon account management and brand consultant company warns online sellers that Chinese tariffs will markedly decrease profit margins.
Salt Lake City, UT (PRUnderground) November 19th, 2018
BuyBox Experts works with brands to develop and implement profitable go-to-market strategies on the Amazon channel. The company warns Amazon retailers that with tariffs on Chinese goods driving up wholesale costs and Amazon’s unwillingness to share in these costs, there may be no choice but to raise consumer prices.
BuyBox Experts helps retailers sell more on Amazon and develop A+ content for their product pages. The company also helps sellers deal effectively with Amazon counterfeit sellers and protect their brands.
BuyBox Experts said that it is already noting the effects of the Trump administration’s tariffs on the marketplace with first-party sellers (1P) seeing a 10 percent cost increase on goods that is expected to rise to 25 percent by next year. In spite of the increase, Amazon is telling brands that it will not pay more for their products, causing 1P sellers to soak up the losses.
As for third-party Amazon sellers (3P), Buy Box said that they may choose to absorb higher costs for a while, but that the tariffs will catch up with them quickly.
“The 3P seller margins are typically well less than 25 percent, so the full impact of these tariffs will not likely be absorbable for long without sellers having to increase retail prices,” said James Thomson, BuyBox Experts Partner.
Thomson said that he fears Amazon could turn the tariffs into an opportunity to promote its private label inventory at the expense of other sellers.
“Amazon may use this situation to advance its own products,” said Thomson. “Because of the quantity of merchandise that they sell and the financial reserves of the company, they have the luxury of accepting low profit margins in order to grow their market share.”
Thomson said that the pinch from tariffs and the resulting price increases will require Amazon sellers to be more shrewd than ever in developing effective Amazon branding strategies and pricing, marketing, and optimizing products.
For more information about Buy Box Experts and their product management, analytics, channel advertising, product research, and brand protection services, visit www.BuyBoxExperts.com.
About Buy Box Experts
Buy Box Experts specializes in Amazon account management, including A+ content detail pages, Amazon product SEO, and brand equity management. Amazon sales consultants and branding strategy managers at Buy Box Experts help businesses sell more on Amazon and protect their brand equity.
