Amazon Reportedly Canceling Wholesale Orders From Asia Due to Tariffs

With tariff policy changing just about daily, especially regarding goods from China, Amazon is reportedly taking precautions. The online retailer is possibly canceling numerous wholesale orders from Asia, which would be subject to potentially high duty fees.

The purported orders are for items the retailer imports and stores in U.S. warehouses. Reportedly, the shipments included summertime products such as air conditioners, scooters, and beach chairs.

According to Bloomberg, a seller of beach chairs made in China received a cancellation notification from Amazon stating the order was placed by mistake. As a result, the vendor must come up with the $500,000 owed to the chair manufacturer as well as find a new buyer. This is the first time Amazon has ever canceled such an order, noted the seller.

“Amazon really holds all of the cards,” Scott Miller, a former Amazon vendor manager, told Bloomberg. “The only real recourse vendors have is to either sell this inventory in other countries at lower margins or try to work with other retailers.”

The Impact of Tariffs on Amazon

While vendors did not say why Amazon might have canceled the orders, the consensus is that tariff uncertainty is likely the culprit. When the company buys bulk inventory from another country, it becomes the importer of record. Purportedly, the retailer has maintained this import policy for years.

Of the inventory sold on Amazon’s site, 40% was purchased from vendors. The other 60% was sold by sellers that pay the retail giant commissions and fees for digital shelf space, advertising, and shipping.

Amazon has not released any statement about canceling wholesale orders from Asia. Founder Jeff Bezos has also been silent on President Trump’s current tariff announcements.

Tariffs imposed by the Trump administration have rattled retailers that rely on Chinese goods. The days of getting cheap goods from discounters Temu and SHEIN may be limited.

With tariff fees as high as 125% on products from China, these retailers will have a hard time not passing on the extra costs to consumers. Additionally, a previous tariff exemption rule that eliminated duty fees on goods valued at $800 or less is likely to go away in the coming weeks.