What 24 7- and 8-Figure Sellers Are Doing About Tariffs

Tariffs Are a Bleeding Neck Problem

This is not a small optimization issue—it’s an existential problem.

One 7-figure seller told me privately,

“There’s no effing profit right now—we’re operating at a negative 20% margin.”

Another 8-figure seller, Bernie Thompson, one of the biggest private label brand owners in the electronics space on Amazon, told me he’s getting hit with an additional $4.5 million dollars in tariffs.

He’s being billed based on his committed purchase orders, and there’s no way he can stop this without shutting down the entire business.

You Need to Audit Your SKUs 

This starts at the product level:

• Look for SKUs that are underperforming or no longer profitable.

• Consider killing them off to save your business.

Also re-look at your sourcing:

• Revisit pricing and renegotiate with suppliers.

• Be honest—tell them you’re taking a hit, and ask them to share the burden.
  

Shipping and Logistics Optimization

There are opportunities to streamline:

• Resize your packaging.

• Eliminate unnecessary items.

• Lower material costs to reduce dynamic costs and tariff bills.

Customs Brokers Are Your New Best Friend

They can help:

• Reclassify your HTS code to possibly reduce tariffs.

• Leverage bonded warehouses to postpone tariff bills and improve cash flow.

• Avoid getting audited or fined by Customs if you make mistakes
  

But the Key Problem Is Uncertainty

Sellers told me:

“We can’t plan more than 90 days out.”

Everything is changing depending on how the trade war with China unfolds.

That’s why we need to be proactive, not reactive.

New Sourcing Opportunities

Major companies like Apple and Nintendo have already diversified their supply chains—India, Vietnam, Thailand—and sellers are following.

For example:

• India used to be mostly handmade and labor-intensive. Now, it has advanced machinery.

• Mexico offers fast shipping, as quick as 2–3 days.

• Latin America (El Salvador, Honduras, Brazil, etc.) presents untapped potential.

• Thailand is seeing Chinese factories relocating there to bypass tariffs (per Jared Hall).

• U.S. manufacturing is challenging but still viable for certain brands.
  

AI Is Now Table Stakes

This isn’t optional anymore.

• Listings must be optimized—if you don’t do it, your suppliers might, and you’ll fall behind.

• Videos can now be made faster and cheaper with AI, saving thousands and reducing production time (according to Andrew Erickson).

• Images—AI can help you create lifestyle and packaging images that call out key features and boost CTR and conversions (per Brandon Fuhrman).

• Customer service—even AI chatbots can cut down back-and-forth time (shared by Steve Simonson).
  

Search Is Moving: From SEO to GEO

Search is evolving toward Generative Engine Optimization (GEO).

On Amazon, Rufus AI is now responsible for 13% of all searches, according to Max Sinclair, founder of Ecomtent..

Ritu Java, co-founder of PPC Ninja, says sellers can identify how Rufus AI is linking queries to products and optimize accordingly.

But Keywords Still Matter

There’s a contrarian view too—keywords are still key to moving the needle.

Bradley Sutton, Chief Education office of Helium 10, emphasizes that many Rufus-generated questions are irrelevant and don’t lead to conversions.

Traditional keyword strategy still works—adding keywords directly into your listing often delivers faster and clearer results.

Whatever Gets Measured, Gets Managed

One of the most underused research tools by Amazon sellers isn’t external software—it’s Amazon’s own first-party tools.

Liran Hirschkorn shared that one of the most valuable tools is the Search Query Performance Report.

This report lets you:

• Clearly identify conversion rates across your entire product category.

• Use that as a benchmark to out-rank your competitors.

If the average conversion rate in your category is 15%, raising yours to 16%, 17%, or even 20% can get your listing ranked higher by Amazon.

Reverse-Engineering Competitor Strategy

You can also study competitors’ ad strategies and outmaneuver them based on:

• The types of ads they’re running

• Timing of those ads

Scott Needham, founder of SmartScout shared that Anker, the largest Amazon private label seller, has cut back massively on Prime Exclusive Deals and coupon deals recently—possibly due to tariffs.

This could be an opportunity for others to aggressively go after their market share.

Precision PPC: Be Like a Surgeon

Amazon PPC isn’t what it used to be.

The old “blanket targeting” method—just bidding high for top-of-search keywords—is now too expensive.

Destiny Wishon mentioned new tools like Amazon Marketing Cloud (AMC) that:

• Let you retarget people who added to cart but didn’t buy

• Reach people who saw your ads on Amazon Prime Video

These were previously available only to DSP customers spending $25K+/month, but now they’re open to everyone.

Early adopters have a first-mover advantage.

External Marketing + Influencers = Social Proof

Influencer marketing is rising fast.

Influencers can:

• Drive external traffic to your listings

• Create video content for your listing, increasing conversion rates

Liz Saunders, founder of influencer agency Fluencer Fruit, says sellers are increasingly using influencers to build social proof directly on Amazon.

TikTok Shop as a Growth Channel

Aaron Hughes, a 7-figure seller who recently exited his brand, and founder or EcommerceWala, used TikTok Shop to:

• Scale off-Amazon revenue

• Boost his brand valuation before the exit

Now, he’s helping brands double their Amazon revenue by leveraging TikTok’s virality—something Amazon can’t offer.

Expanding to Avoid Tariffs

One major strategy is expanding into new marketplaces to bypass U.S. tariffs.

Right now, the U.S. has up to 145% tariffs on Chinese goods, and a 10% baseline on others during Trump’s 90-day pause.

Dave Bryant, a multi-7-figure seller and co-host of the EcomCrew Podcast, sells on Amazon Canada. Though revenue is smaller, margins are higher due to lower competition and:

• Lower PPC costs

• Higher product pricing
  

EU and UK: A Worthwhile Investment

Chris Davey has been shifting focus from the U.S. to Europe and the UK, where he’s grown sales to over seven figures.

Vincenzo Toscano, CEO of Amazon agency Ecomcy, agrees—Europe is a profitable long-term play, though you need to:

• Set up VAT and registrations

• Be patient during the ramp-up
  

Other Amazon marketplaces to discover more profit - Amazon Canada, EU/UK, and Japan

According to SmartScout, Japan is Amazon’s second-largest marketplace by revenue.

Why sellers are eyeing it:

• 0% tariffs on Chinese goods

• Short shipping windows (as little as 1 week from China)

• Low competition

• Amazon is the #1 ecom platform in Japan
  

There’s a language and cultural learning curve, but for the right brands, this is a huge untapped opportunity.

Revenue is Vanity, Profit is Sanity

Now more than ever, this saying rings true.

With:

• Higher tariffs

• Rising COGS

• Increasing Amazon fees

You have to manage your margins tightly.

“Small Hinges Swing Big Doors”

Chelsea Cohen, founder of SoStocked, suggests:

• Resizing products to fit a smaller Amazon tier

• Just a few cm smaller could save big on:

  • FBA fees

  • Storage costs

  • Shipping

This goes straight to your bottom line.

Yes, Raise Prices (But Smartly)

Many sellers are scared to raise prices, but major brands like Anker have already increased prices by 15% across multiple products.

⚠️ Be careful: Raise prices too much, and you risk losing sales and rankings.

That’s why tools like Profasee are becoming essential. These tools:

• Adjust prices based on your goals (profit or rank)

• Compare your prices to competitors

• Set guardrails to avoid pricing too high or too low
  

Hope on the Horizon

There’s a shakeout coming. Not all brands will survive.

A recent Reuters report said some Chinese brands are either raising prices or quitting Amazon US altogether.

That means:

• Less competition

• A market more like 2021–2022, when sales and profits were stronger

“Be fearful when others are greedy, and greedy when others are fearful.” – Warren Buffett

Right now, most are fearful. This is your chance to double down strategically.

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