Amazon Reportedly Pushing Suppliers for Discounts to Combat Tariffs

Core Insights - Amazon is seeking significant supplier discounts to mitigate the impact of U.S. tariffs, specifically requesting low double-digit price reductions from various merchants [1][2] - The company is facing potential operating profit reductions between $5 billion and$10 billion this year due to the 145% tariffs on goods imported from China [2] - Amazon has shifted its sourcing strategy by canceling direct imports from China and opting for suppliers with American stock to adapt to the tariff environment [3][4] Supplier Relations - Amazon's aggressive stance towards suppliers is influenced by its dominant market position, leading brands to feel dependent on the platform [2] - The company is collaborating with a diverse range of selling partners to help them adjust to the evolving market conditions while keeping prices low for consumers [4] Competitive Landscape - Research indicates that many consumers are increasingly engaging with both Amazon and Walmart, with nearly 25% of American adults holding memberships for both retailers, a significant increase from 2021 [5] - The traditional perceptions of Walmart and Amazon are evolving, as consumers seek value across both platforms, often shopping simultaneously [6]