Why Tariffs are the BEST thing to happen to Amazon sellers in a long time

"There's no effing profit right now." That's what one 7-figure seller confided in me recently as they stared at their spreadsheets showing negative 20% margins.

Meanwhile, Bernie Thompson, one of the biggest private label electronics sellers on Amazon, is facing a $4.5 MILLION tariff bill from his committed purchase orders alone.

I know you're worried about your margins getting crushed right now. I've heard from hundreds of sellers who are panicking, and with good reason.

But here's what most sellers don't realize: this window of opportunity is already closing FAST as the smart players make their moves.

Some of the greatest companies were created during recessions and economic downturns. Companies like Google, Uber, Airbnb, even older companies like GM, Microsoft, and Trader Joe's.

The common thread is that all of these companies were built and then grew out of economic downturns.  While their competition was panicking they managed the challenges, identified the opportunities, shifted their businesses and came out of the downturn stronger and more resilient and they were able to thrive. 

Right now, as we're going through the tariffs, the tariffs are causing maximum uncertainty and crashing the markets all over the world.

Even Andy Jassy, Amazon's CEO, is saying that this is a huge period of uncertainty for Amazon. 

However, there's a silver lining out of this, and I want to show you three key reasons why:

1. The competition is thinning out. 

We're already seeing a number of sellers quitting Amazon US. We've seen on the news, Reuters article said that many Chinese brands were exiting Amazon US because their business is no longer profitable with the tariffs.

6 to 12 months down the line, there will be ¼ to ⅓ less sellers on Amazon and in ecommerce than before.  

This would be like going back to 2020 levels of selling on Amazon after this period of tariff uncertainty.  

2. The de minimis loophole is now gone 

Previously US Customs and Border Partrol allowed any packages that were shipped from China, less than $800 declared value, to come into the US duty free. This was a huge loophole.

Literally there were billions of dollars of packages being shipped and companies like Shein and Temu and a lot of the cheaper Chinese brands were avoiding paying tariffs by taking advantage of this loophole.

Now with the de minimis gone as of May 2nd, this is leveling out the competition. 

We're already seeing Temu stop direct from China shipments to the US and increase prices on all of their products across the board. 

So if you play your cards correctly, you'll be able to have better margins than before, because there are fewer loopholes that unfair competition can use.  

3. Your competitors are taking their foot off the gas 

We're already seeing that a lot of your competitors are scaling back on marketing.  Big brands like Anker are rolling back on their advertising campaigns.  

We are seeing many brands not even participate in Prime Day campaigns. 

We've never seen anything like this before through the whole history of Amazon selling.

This is the first time they're doing this because they're trying to wait and see. 

They're trying to hold onto their inventory as long as they can. They're also launching fewer products.

Right now is a golden opportunity where you can potentially take market share from your competition if you do it strategically.

During these periods of economic downturns, that's when great businesses and the most millionaires are made.

Now I want to hear from you: What's your biggest challenge with the tariffs right now, and what (if anything) are you doing about it?

It'll take just 30 seconds, and your input will help me tailor tomorrow's solution to the real challenges Amazon sellers are facing right now.

Tomorrow, I'll be sharing a solution I've developed specifically for ecom sellers that can help you not only survive these tariffs but potentially increase your profits and make your business even stronger coming out of this transition period.

Stay tuned,

Gary

P.S. I've spent the last month interviewing dozens of top Amazon sellers about exactly how they're handling this tariff situation. The contrast between those who are panicking and those who are strategically pivoting is fascinating... more on that tomorrow.