Amazon’s summer Prime Day could be light on deals as sellers don’t want to quickly sell through the inventory they stocked up on before tariffs hit. Three agency heads told Retail Brew that instead of going all-in on Prime Day, some Amazon sellers are being pickier and more strategic about how they discount their catalogs. In the last few months, some Amazon sellers have also had to raise prices by 15%–20% due to costs tied to tariffs. Put together, the Amazon experts said many brands are hesitant to commit to even Prime Day sales, because the market feels unpredictable and sellers are worried about running out of inventory too quickly. “In general, we are seeing less deal submissions this year as clients handle their pre-tariff inventory like gold,” Ryan Craver, founder of commerce agency Commerce Canal, told Retail Brew in an email. “They all have enough stock now but several are seeing light inventory in Q4 and the tariff relief from Amazon has been mixed at best.” Amazon CEO Andy Jassy recently said the company is “maniacally focused” on keeping prices low for shoppers. However, with tariffs driving up product costs, brands are in a tough spot, Kyle Olson, VP of client services at Amazon seller agency Podean, wrote in an email. Brands can’t afford to both pay more for their products and offer big discounts, he added. “We have heard that Amazon has had fewer submissions than prior years in their marquee placements (Top Deal, Lightning Deal) which reinforces this perspective as most brands take a more conservative and sensitive approach,” Olson said. “Many of our brands have been leaning into other areas that still offer reach but are more nimble or less directly impactful to the bottom line.” Keep reading here.—VC |