Controversy has descended on Amazon as rumors swirl around companies bowing out of Prime Day and the potential of listing tariff changes in product pricing on the site. However, the company keeps advancing its business strategy amidst the turmoil, including incorporating a retail banner — Saks— that appeals to the segment of consumers who continue spending more: the affluent.
According to published reports, the White House slammed Amazon for a plan to incorporate the cost of tariffs on items subject to new duties. White House Press Secretary Karoline Leavitt called the move a “hostile and political act,” according to reports. In the meantime, Amazon countered that it was not planning to add any such notification. Amazon said a tariff-cost listing came under discussion with regard to the company’s Haul operation, developed to counter low-price China-based retailers such as Temu and Shein, but Amazon is taking no such action.
In a statement, Amazon asserted, “The team that runs our ultra low-cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen.“
China-based retailers who are dealing with tariffs, including the end of the de minimis tariff exemption on items valued at $800 or less, are acting to reassure consumers and offer deals that reinforce their low pricing and address duties. For example, Temu is currently listing products with the tag Local if they are held in what it calls a local warehouse and, in the product listing, the company further states that the product is not subject to import charges. Temu searches feature products marked Local predominantly. Shein product listings now include a box on a product’s warehouse location, such as EU Warehouse.
Temu and Shein each made similar statements recently about the effects of tariffs on the prices they could offer their value-sensitive customers.
Reuters news service recently reported that some third-party merchants who previously sold China-manufactured products during the Amazon Prime Day promotion don’t plan to offer discounts as part of the event this year or are reducing the amount of bargain merchandise they intend to offer.
Amazon remains focused on evolving its business, announcing it would offer shoppers a luxury Saks storefront, which comes at a time when affluent consumers are expressing more confidence in the economy and are willing to spend money even on non essentials.
According to the company, an Amazon Fashion and Saks Fifth Avenue partnership will deliver an assortment of luxury brands. Saks on Amazon, located in Amazon Luxury Stores, will feature, according to Amazon, a refined selection of merchandise curated by Saks Fifth Avenue from labels such as Dolce&Gabbana, Balmain, Etro, Stella McCartney, Giambattista Valli, Erdem, Fear of God, Jason Wu Collection, Rosetta Getty, Johanna Ortiz, Chantecaille and La Prairie.
To support the storefront rollout, Saks and Emmy-award winning director Max Siedentopf have created an editorial marketing campaign, “Saks Arrives on Amazon,” to promote the thrill and anticipation of receiving luxury items with ease on the retailer’s platform, according to Amazon.
