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• Several third-party sellers will not be participating in Amazon's 2025 Prime Day

• The 145% tariffs on China-made goods are making it "unaffordable" to sell their merchandise at a discounted cost

• In Q4 of 2024, 62% of units were sold by third-party sellers

Several third-party sellers will not be participating in Amazon's (NASDAQ:AMZN) 2025 Prime Day sales due to tariffs, Reuters reported on Monday. The merchants, who previously sold China-made goods on Amazon's e-commerce platform, have said they will not be participating at all, or will greatly reduce the amount of discounted merchandise they offer in order to protect profit margins.

Prime Day, which is usually held in mid-July, is one of Amazon's biggest shopping events of the year. Participation for individual retailers is optional, but Amazon spends millions of dollars promoting the event, which can lead to a halo effect for sellers.

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Four sellers and six consultants, who represent hundreds of individual sellers, told Reuters they will not be a part of Prime Day this year.

One of these sellers, Steve Green, who lists China-made bikes and skateboards on his shop, told the agency he's planning to skip Prime Day for the first time since 2020. With tariffs on China sitting at 145%, the cost of newly imported merchandise will nearly double for him, making it "unaffordable." Rather than listing it at a discount during the sale, he plans to hold onto the stock he imported before the tariffs took effect to sell later at full price.

Kim Vaccarella, the chief executive of Bogg Bag, a China-made tote bag company, has a similar plan. She is working to move manufacturing to Cambodia and Vietnam, where tariff costs will be lower, and is electing to hold on to some of her existing U.S. inventory until the transition is complete. Rather than selling the rubber totes, which typically go for between $70 to $200, at a steep Prime Day discount, she's moving them to stores like Macy's (NYSE:M), Bloomingdales, and Dick's Sporting Goods (NYSE:DKS) where they can be sold at full price.

"Amazon will be fine, but I do feel for some of the third-party sellers – they’re the ones that are going to be hurt the most in this environment," Arun Sundaram, an analyst at CFRA Research, told Reuters.