A too-good-to-be-true tariff solution for Amazon sellers ⚠️ [MDSR #44]

Hot Off The Presses 📰

Were you hoping for a break from all the tariff talk? Sorry, but today is not that day.

The de minimis order is about to upend eCommerce even further, and no player in the ecosystem is safe. Not even the retailers who already moved production out of China — or the companies who merely facilitate online sales (think: Shopify, Klarna, Stripe) without moving any physical goods themselves.

Global trade tensions are even poisoning the well for big tech and media. For starters, Trump’s tariffs killed his very own TikTok deal. And now ad spend is predicted to decline by $10B in 2025 alone because no one can afford the cost of acquiring new customers. 

If you’re reading this newsletter, you already know that big losses are on the horizon for Amazon sellers that source from China. But refreshingly, some sellers have found a silver lining in the demise of de minimis — less competition from Shein and Temu — although most are still laser-focused on the demise of their profit margins. 

So, who’s throwing Amazon sellers a lifeline? 

Chinese manufacturers beat Amazon to the punch with a simple (albeit illegal) tariff solution: Lying about the value of imports. Now that Amazon’s account managers are stepping up to the plate, a better option would be responding to any seller outreach you receive re: how tariffs are affecting you — assuming that the field data they’re collecting will inform things like new pricing tools or a fee structure recalibration.

Amazon CEO Andy Jassy’s answer is to simply pass tariff costs onto shoppers**. Not entirely practical given the competitive interest in keeping prices low — which will force brands to rethink all those cost management tactics, including rolling back free shipping. 

**The shoppers in question are currently secondhand shopping at Ebay and Goodwill to spare themselves the tariff cost increases.

As far as how other platforms are proceeding? Even Etsy, who lost 1.4 million active sellers in one year, is promising to protect sellers if buyers refuse to pay tariffs

Perhaps Amazon can take a page out of Walmart’s book and turn this tariff upheaval into an opportunity, or at least give sellers a blueprint for convincing Chinese suppliers to absorb the tariff costs. Lest we forget that Amazon’s stock was among the hardest hit following the tariff announcement.

But to end on a high note: 

1. Amazon Haul is already getting… an overhaul, and there will be valuable lessons for sellers if they’re successful.

2. More than half of Amazon’s marketplace GMV comes from veteran sellers, which proves that it is possible to run a sustainable storefront as conditions evolve. 

3. Amazon is continuing to forecast growth with a $700M financial gain thanks to their AI-powered Rufus. 

And we can only hope that their latest agentic AI project — a “Buy For Me” button that purchases third-party items on shoppers behalf without leaving the Amazon app — can win over consumers enough to breathe new life into the economy.

Fingers crossed!

Million Dollar Advice 💸 

If you’re thinking along the lines of — 

I know my target audience better than anyone. The data can’t tell me anything I don’t already know after X number of years selling in this niche. Making product and keyword decisions on a gut feeling have gotten me pretty far over the years.  

Then you may be relying too heavily on the kind of emotional decision-making that leaves money on the table. But it’s never too late to try a data-driven Amazon strategy for top product rankings... What do you have to lose? 

Tariff Tactics Briefing 🚢

With the elimination of the de minimis exemption and new tariffs hitting Chinese imports hard, survival now depends on agility, strategy, and precision. Here's how top sellers can stay ahead:

📦 1. Rethink Your Supply Chain

• Consolidate shipments to reduce customs processing headaches and per-unit shipping costs.
  

• Explore alternate sourcing hubs like Vietnam, India, or Mexico for select products.
  

• Negotiate with suppliers—many are open to price adjustments in light of tariff impacts.
  

💰 2. Revisit Your Pricing Strategy

• Factor tariffs into landed cost calculations now—before they hit your margins.
  

• Consider premium positioning or bundling to justify slightly higher prices.
  

⚖️ 3. Stay Compliant

• With de minimis gone, EVERY shipment from China—regardless of value—is now dutiable.
  

• Work closely with your freight forwarder or customs broker to avoid costly misclassification.
  

🧠 4. Think Like a Brand, Not a Reseller

• Invest in product differentiation and IP (trademarks, design patents) to protect margins.
  

• Brands can weather storms—me-too listings rarely do.
  

📊 5. Model Your Risk

• Run scenarios: What happens to your profit if your COGS increases 10–20%?
  

• Use tools like Helium 10 or Jungle Scout to reevaluate underperforming SKUs now.
  

🔥 MDS Pro Tip: Speed and adaptability will separate sellers who scale from those who stall. Tariffs aren’t the end — they’re the filter. Keep your eye on unit economics, logistics efficiency, and brand value.

Think these tips are helpful? Feel free to pass ‘em along 🙂 

eCom Stock Watch 📊

Click on the table below or view the full size data here. 

Join us this weekend for a Dubai eCom lunch 📍

Calling all sellers based in Dubai 📣 Mix and mingle with Dubai’s top Amazon sellers this weekend at a free eCom lunch hosted by MDS.

📅 Date: Sunday April 20th, 2025

⏰ Time: 1PM - 3PM PM GMT+4

It's the perfect opportunity to connect with fellow Dubai-based ecompreneurs 🤝 Don't forget to register — see you there?!

Did you see that post 📲

Thanks for asking though 😅

Until Next Time ✌️

As always, thanks for sticking with us until the end. 

If you’d care to share your thoughts on this newsletter, we’re all ears. Just hit reply to sound off. 

See you next time with more of the latest and greatest content you need to succeed this year 🔥

Sincerely, 

Looking for a mastermind community?

Million Dollar Sellers (MDS) is an exclusive community of 700+ like-minded Amazon and DTC sellers from all over the world. Collectively, our members generate more than 8 billion in annual sales and dominate some of the biggest categories on Amazon. MDS offers world-class events, chapters, industry discounts, resource libraries full of SOPs, templates, and video recordings of private trainings, workshops, events and so much more.

If you are looking for a business professional community made for ecom entrepreneurs, then consider applying today. 

*To qualify, you must be a full-time seller or brand owner and do at least 1 million in verified annual revenue. Will Amazon’s Returnless Resolutions solve the returns debacle? [MDSR #30]