Amazon’s latest pricing moves are drawing scrutiny as consumers notice costlier checkouts. Since April, the company has quietly raised prices on more than a thousand everyday household staples.
The increases contradict earlier assurances made by CEO Andy Jassy to keep prices steady for shoppers, even as tariffs disrupt supply chains.
While rivals like Walmart lowered prices on similar essentials, Amazon’s shifts mean many basics now cost more. Shoppers are worried, and analysts are watching for the long-term fallout.
Price Increases Detected Across Essentials
A Wall Street Journal analysis found that Amazon raised prices on 1,200 of its least expensive household products between January and July. On average, these items saw a 5% price jump. The changes affected daily-use goods such as deodorant, protein shakes, and pet care items.
Some products experienced far larger hikes. For instance, Campbell's New England Clam Chowder rose nearly 30% in six months. Even domestic goods that have "Made in USA" labels were not exempt from the price increases. One stackable metal basket, assembled in Ohio, increased from $9.31 to $19.99 in just a few months.
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Some ‘Made in USA’ products on Amazon saw sharp price increases, even though vendors reported no wholesale price hikes to retailers during the same period.
Contrasted With Competitors’ Moves
As Amazon’s everyday items climbed in price, Walmart adopted a different approach, cutting prices on comparable products. Data from a respected eCommerce firm revealed Walmart reduced prices by nearly 2% on essentials that Amazon made more expensive. Target focused on internal cost-cutting to avoid immediate price hikes.
This divergence in strategy is a response to complicated trade dynamics. Over recent months, President Trump’s tariffs created uncertainty. Amazon appeared to pass some costs to shoppers on lower-cost goods while trying to absorb tariff impacts on big-ticket items.
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Vendor Statements and Industry Questions
Amazon disputed the findings, asserting that these product snapshots did not reflect the company’s true pricing trends. “We have not seen the average prices of products offered in our store change up or down appreciably,” the company said.
However, manufacturers of several goods that became more expensive on Amazon told reporters they had not increased wholesale prices to retailers during the same timeframe.
A particularly notable spike occurred on February 15, only two days after the former president suggested that tariffs could expand to nearly all US trading partners.
Some industry consultants say Amazon faces steeper shipping costs and struggles to turn a profit on its cheapest inventory, a challenge less pronounced for Walmart, which relies on in-store baskets that include higher-margin items.
Consumers and the Tariff Puzzle
CEO Andy Jassy announced in April that Amazon would try to keep prices stable through renegotiations and advanced inventory purchases. At one point, Amazon considered flagging tariff charges directly on its site, but the idea was dropped, reportedly over concerns about the optics and potential backlash.
Meanwhile, many shoppers find themselves paying noticeably more for basics as inflation continues to stress household budgets. Consumer advocates warn of trendlines that could push costs higher if tariffs persist or expand.
For those loyal to Amazon Prime, the price changes are raising tough questions about the brand’s value position versus traditional retail competitors.
Looking Forward in the Retail Landscape
Retail watchers expect Amazon’s price policies to evolve as the tariff situation develops. Heading into the busy holiday season, the company's delicate balance between customer satisfaction and margin protection will be closely scrutinized.
Competitors are likely to react quickly to any missteps, ensuring the next round of pricing moves will be closely watched by shoppers and the industry alike.
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