Third-party sellers on retailer marketplaces, such as those on Walmart.com and Amazon.com, have been stockpiling inventory to shield themselves and consumers from the impact of new tariffs, a temporary fix at best. Once current stocks run out, sellers will be forced to reorder at higher tariff rates, likely resulting in increased prices for consumers or squeezed profit margins for merchants. While major retailers have the resources to weather these disruptions, some small business owners are expressing concern about keeping their companies afloat.
Key Takeaways:
-
Third-party sellers’ efforts to stock up on inventory will only delay, not prevent, the impact of tariffs.
-
Price increases and potential product shortages are expected once pre-tariff inventory is exhausted.
-
Smaller sellers face greater risks from ongoing tariffs.
