Amazon is beginning to see higher product prices on its e-commerce platform as sellers respond to cost pressures created by U.S. tariffs, according to comments by the company’s chief executive.
Speaking to CNBC at the World Economic Forum in Davos, Andy Jassy said some third-party sellers are now passing increased costs on to consumers. The shift comes after Amazon previously encouraged sellers to pull forward inventory shipments last year to avoid higher shipping and tariff-related expenses, a strategy Jassy said ran its course by the fall.
“We’re starting to see some of the tariffs creep into some prices,” Jassy said, adding that sellers are taking varied approaches, with some absorbing costs to maintain demand while others partially or fully passing them on.
Despite the changes, Jassy said consumer demand has remained relatively resilient, with shoppers continuing to look for deals. However, he noted that customers appear more cautious when it comes to higher-priced discretionary purchases. “Amazon’s consumers overall have fared well,” he said, while cautioning that the outlook for 2026 remains uncertain.
Over the past year, Amazon has said tariffs had little visible impact on pricing or consumer behavior. The company has expanded product categories and accelerated delivery times in an effort to shield demand as broader cost-of-living concerns persist in the United States.
Tariffs have become a key political issue ahead of U.S. midterm elections and a central topic of discussion among global leaders gathered in Davos this week. Amazon shares fell 2.7% in early trading amid broader market weakness.
Separately, executives from Coca-Cola said the company is relatively insulated from tariffs due to its localized manufacturing model, despite some exposure to higher aluminum and resin costs.
