As tariffs and political pressure mount, Amazon quietly raises prices on essentials while Walmart cuts costs—leaving operators and consumers squeezed.
Walmart slashed prices while Amazon raised them on 1,200+ low-cost items as tariffs cloud the retail landscape.
Amazon raised prices on over 1,200 household staples
Amazon told the public one thing in April: that it would “hold the line” on prices. Behind the scenes, it did the opposite.
According to a Wall Street Journal analysis, powered by ecommerce tracker Traject Data, Amazon increased prices on more than 1,200 of its cheapest household essentials between January and July. We’re talking everyday basics like deodorant, protein shakes, pet meds, and soup. On average, prices jumped 5.2%.
One glaring example: A $9.31 metal storage basket from Dayglow LLC surged to $19.99 on Amazon, even though Dayglow never raised its wholesale prices. And it wasn’t just imported goods. Domestically produced items like Campbell’s soup also saw hikes.
Meanwhile, Walmart cut prices on the same set of items by nearly 2%, gaining ground in the price perception war just as inflationary fears reemerge.
Amazon defends its pricing strategy, denies major increases
Amazon blasted the Journal’s analysis, calling it a “cherry-picked” dataset. In multiple statements to ConsumerAffairs, NewsNation, and others, the company claimed that prices have not changed “appreciably” and that it remains competitively priced across its catalog.
CEO Andy Jassy even told CNBC that forward-buying strategies helped mitigate tariff-related costs, and Amazon highlighted Profitero data showing it had the lowest average prices among major U.S. retailers last year.
But this isn’t about averages or edge-case discounts on $500 electronics. It’s about core, low-cost products that make up one-third of all U.S. units sold on Amazon in Q1. The pricing squeeze on these items matters.
Tariff pressure, thin margins, and the political chessboard
So what’s really driving the price hikes?
- 📦 Tariffs: Trump’s protectionist trade moves—including a 145% tariff threat temporarily reduced to 30%—hit Amazon’s Chinese imports hard. The August 12 tariff deadline is looming, and operators are scrambling.
- 🧮 Margins: Amazon loses money on essentials. High shipping costs obliterate slim profits. Corey Thomas, an Amazon vendor consultant, said Walmart can stomach the losses better due to in-store cross-subsidization.
- 🧨 Politics: When Amazon flirted with showing tariff surcharges on Haul, its discount site, the White House called it a “hostile and political act.” Bezos got a call. The plan died. Here’s the full backstory.
Now, Amazon’s caught in a damned-if-you-do, damned-if-you-don’t bind. Show the truth, and get slammed politically. Eat the tariffs, and torch profits.
Price volatility is the new normal
Prices on Amazon are now whipsawed by a cocktail of:
- 🛍️ Prime Day promo cycles
- 🔄 Seasonal algorithms
- 📉 Out-of-stock swings on rival platforms
- 📊 AI-driven repricing
And that’s before the August 12 tariff snapback potentially adds a 100-point surcharge overnight.
The Prime Day 2025 results were record-breaking, sure. But even those numbers mask a deeper consumer shift: smaller orders, mobile-first behavior, and a hunger for sub-$20 deals. Not exactly margin magic for Amazon.
So what?
This isn’t just about Amazon being sneaky.
It’s about operators and consumers getting caught in the crossfire of a tariff war, algorithmic pricing, and political theater. If you’re sourcing from China or selling low-cost goods on Amazon, your reality is simple: costs are up, pricing is volatile, and the playbook just got shredded.
Get ready to renegotiate, reroute, or raise prices—because the algorithm isn’t going to eat the tariff for you.
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