South Korean media: Following Walmart, Amazon also demands suppliers cut prices!
On April 30, South Korean media "The Korea Herald" published an article stating that the world's largest e-commerce company, Amazon, is pressuring suppliers to cut prices in order to mitigate the impact of the "Trump tariff".
According to the Financial Times, Amazon has demanded that sellers of products ranging from home goods to appliances reduce their prices by double digits.
After the Trump administration imposed high tariffs, Amazon adopted a tougher stance towards companies sourcing products from China. They canceled a large number of products imported directly from China and instead purchased products from suppliers with inventory in the United States.
Scott Miller, who previously served as an Amazon supplier manager, said, "Amazon is like the '800-pound gorilla in the room', brands have become dependent on Amazon, leaving them with few options."
Previously, Amazon CEO Andy Jassy stated in an interview that although suppliers may raise prices, the company will focus on negotiating with its own suppliers to maintain low prices.
Analysts at Goldman Sachs said that Amazon's operating profit this year could be reduced by $5 billion to $10 billion, depending on the progress of the trade war.
Previously, it was reported that the largest retailer in the United States, Walmart, had also requested some Chinese suppliers to significantly lower product prices to avoid price increases caused by tariffs.
Bloomberg reported last month, citing anonymous sources, that Walmart had requested that some of its Chinese suppliers gradually reduce prices, with the maximum reduction reaching 10%.
Original source: https://www.toutiao.com/article/1830812622970880/
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