Amazon.com, the world’s largest e-commerce giant, has quietly raised prices on hundreds of essential items over the past five months, despite promising to keep them low. According to a report by The Wall Street Journal, Amazon increased prices on “low-cost” products such as deodorant, protein shakes, and pet care items, which saw an average price hike of 5% between April and July.
The move is significant because it contrasts with Amazon’s initial promise to keep prices low for consumers when President Trump announced tariffs in April. Despite this, the company has been raising prices on imported goods and those assembled in the US, with some products experiencing price hikes of up to 30%.
Amazon sellers say they have not raised their prices to retailers, but the costs of these goods on Amazon have increased significantly. The e-commerce platform’s everyday essentials are sold with little or no profit margin due to high shipping costs.
Rivals such as Walmart and Target are taking a different approach, cutting prices on similar low-cost items while targeting other cost-cutting measures. This shift is partly due to the ongoing uncertainty surrounding international trade agreements and Trump’s policy shifts.
The report by The Wall Street Journal highlights Amazon’s pricing strategy and its implications for consumers. As investors consider whether to buy, hold, or sell Amazon stock (AMZN), they should note that TipRanks’ Strong Buy consensus rating is based on 44 Buys and one Hold rating, with an average price target of $251.44 implying 11.2% upside potential from current levels.
Source: https://www.tipranks.com/news/amazon-hikes-prices-of-essentials-despite-pledge-to-hold-them-steady