Marketplace Briefing: Amazon sellers recommit to Prime Day after tariff relief — but scramble to restock in time
This is the latest installment of the Marketplace Briefing, a weekly Modern Retail+ column about the ever-changing e-commerce marketplace landscape. More from the series →
Many Amazon sellers who were planning to sit out Prime Day are now back in the game — but now they’re under the gun to get goods shipped from China to the U.S. in time.
In recent weeks, steep tariffs on Chinese imports had led some brands to opt out of Amazon’s major summer sales event altogether. Others were planning to scale back discounts or delay participation. Now, following a temporary easing of those tariffs, sellers are returning — with lighter promotions, narrower product selections and backup plans in place, according to nine sellers and five consultants who spoke to Modern Retail for this story.
“Sellers who had planned to skip Prime Day are now reconsidering,” said Jon Derkits, a former Amazon corporate employee who has been selling on Amazon for five years and now runs a consultancy for sellers. He estimated that, prior to the new agreement between the U.S. and China, about 75% of his 60 clients that source their goods in China were planning on pulling out of Prime Day, one of Amazon’s biggest sales events of the year. Independent merchants like Derkits provide more than 60% of all products sold on Amazon.
Bogg, which manufactures perforated tote bags in China and sells them through Amazon and other major retailers, previously told Reuters it would skip Prime Day. But now Bogg is planning to join, after all. “Bogg will participate but will only discount select products or won’t discount as steeply as last year,” a company spokesperson told Modern Retail in an email statement.
Judah Bergman, the founder and CEO of baby products brand Jool Baby, said that “before this last reduction in tariffs, we probably weren’t going to participate.” Now, he said, “we’re revisiting everything.”
“We’re pleased by the strong response from selling partners to Prime Day 2025 and look forward to bringing customers discounts across a wide selection of products,” a company spokesperson told Modern Retail in an email. “We’re working with our broad, varied range of valued selling partners in our store to support them in adapting to the evolving environment while maintaining low prices and broad selection for customers.”
Sellers rush to restock in time
On Monday, the U.S. and China reached a 90-day agreement to temporarily lower tariffs on Chinese imports from 145% to 30%. It was good news for Amazon sellers, many of whom rely heavily on China for manufacturing. Wedbush Securities estimates that up to 70% of goods on Amazon come from China.
The temporary 90-day reprieve allows sellers to bring in products at significantly reduced rates, but the clock is ticking. Although the tariff rollback offers short-term financial relief, it may be too late for some sellers to fully restock before Prime Day. Online merchants previously told Modern Retail that inventory shortages were just weeks away.
The deadline for brands to participate in Prime Day is May 23, according to an internal memo from Amazon to sellers obtained by Modern Retail. The message also urges sellers to ensure their inventory arrives by early to mid-June so it can be checked into Amazon’s fulfillment centers ahead of Prime Day in July — putting them under a tight deadline.
“Goods are being held in China and likely won’t get here in time now by ship to be checked in for FBA by Prime Day,” said Brandon Fishman, CEO of Prime Time Agency, an Amazon consulting agency that works with about 60 sellers. Many of his clients had held off on ordering inventory to avoid steep tariff costs earlier this spring and are now rushing to catch up. “Everyone is scrambling now to get boats here,” he said, adding that some sellers are trying to fast-track shipments in hopes of making the deadline window, and also to ensure they have inventory for later in the year after the 90-day reprieve ends.
Scott Needham, founder of e-commerce analytics firm SmartScout, who also sells home goods on Amazon, said his participation in Prime Day this year hinges, in part, on how soon his containers from China will hit U.S. shores, which he estimated could take about 60 days. “All systems are a go,” he said.
Adam Wilkens, founder of Dotcom Reps, which has about 30 clients, said many sellers simply missed the window. “It’s too late to get goods out of China at this point,” he said. “If they don’t have inventory in-country or on the water by now, they’ll miss their injection window.”
Liz LaVallee, COO of Avenue7Media, said some of her clients were better prepared than others, particularly those who had pre-produced goods stockpiled in China or at offshore warehouses. “Those folks are in a better position to say, ‘OK, great, now I can participate more fully in Prime Day,’” she said. “But even they’re facing challenges like high freight costs and limited storage capacity in the U.S.”
Indeed, multiple sellers told Modern Retail that Amazon has cut their storage capacity as much as 70% ahead of Prime Day, which they said is unusual for this time of year. Amazon CEO Andy Jassy told CNBC in a recent interview that the company has done “some strategic forward inventory buys” and is in the process of renegotiating terms with suppliers.
Amazon has surveyed some of its suppliers and sellers to see how tariffs are impacting their businesses ahead of Prime Day, Modern Retail reported.
Chuck Gregorich, founder of Net Health Shops, an eight-figure business on Amazon that sells China-made fire pits and hammocks, said he’ll still take part in Prime Day — but with limitations. “What you like to do on Prime Day is take your best stuff and just blow it out the door,” he said. “But that’s not going to happen this year. My best-selling stuff is in low inventory.”
Instead, Gregorich plans to focus on slower-moving products. “We’ll always have some excess inventory, and that’s what we’ll discount,” he said.
Fewer discounts
Despite the tariff relief, many sellers told Modern Retail that discounts may not be as aggressive as in years past.
Rick Sliter, CEO of MedCline, which sells therapeutic medical pillows made in China and Vietnam, said his company is proceeding cautiously. “The 30% rate is better than 145%, but that higher cost could result in us not offering as steep of a discount.”
Mustafa Kothawala, who sells home and kitchen goods on Amazon through his business Simpli-Magic, echoed that sentiment. “We’re going to be a lot less promotional,” he said. “Probably five or fewer products.”
All told, morale around Prime Day has noticeably improved in recent days. “Prime Day is back on,” said Jon Elder, CEO and founder at Black Label Advisor, which advises hundreds of merchants. “Every seller I know has placed their bulk orders from China and is planning to keep their discounts for the holiday sales event. Talk about a 180.”
Roblox expands real-world commerce with in-game physical shopping
Roblox is taking a major step toward turning its platform into a virtual shopping mall.
On Thursday, the company launched its Commerce APIs, a new tool that allows eligible creators and brands to sell physical products directly within their Roblox experiences. As part of the rollout, Roblox is also debuting its new Approved Merchandiser Program, which lets physical product purchases unlock virtual avatar items on the platform. The announcement builds on a pilot Roblox announced last year when it tapped Shopify to be its first commerce integration partner to sell physical goods on the platform.
Brands that already sell through Shopify can now plug in their storefronts and begin offering real-world items like cosmetics, apparel and accessories within Roblox games — no external checkout page required. “It’s so easy now to plug in commerce and start monetizing the experience in a different way,” said Stephanie Latham, Roblox’s vp of global brand partnerships. “This is just the beginning.”
The system has already shown early signs of success. In closed beta tests, creator studio Twin Atlas generated six-figure revenue within the first few weeks of launch, with 90% of purchases coming through Roblox’s in-game shopping interface and about half of those from repeat customers.
At launch, brands including Rihanna’s Fenty Beauty and The Weeknd will go live with shoppable Roblox activations. Fenty is offering a limited-edition Gloss Bomb shade exclusively available in its Roblox experience, while The Weeknd is selling ticket bundles for his new film alongside a digital item.
While the announcement focuses on fashion and entertainment, Roblox expects to expand commerce into other categories, like food delivery and travel. “You can imagine pre-flight experiences or ordering delivery from a game,” Latham said. “As long as it’s contextually relevant, the possibilities are endless.”
What I’m reading
- Amazon has entered into a partnership with FedEx to handle some of its large package deliveries, following a pullback from UPS.
- Amid a temporary 90-day U.S.-China tariff truce, American companies are expediting shipments from China to capitalize on reduced import duties before potential increases resume.
- TikTok Shop’s U.S. e-commerce sales have slumped amid tariff hikes and uncertainty, per Business Insider.