Rethinking Your 2025 Prime Day Pricing Strategy in a Post-Tariff Economy

‍Tariffs Are Squeezing Seller Margins

The 2025 tariffs have pinched sellers’ margins like never before, and many simply can’t afford to discount like they previously did. As Rick Sliter, CEO of MedCline, put it: “Last year Prime Day was a no-brainer,” but now, with tariffs, discounting is 'out the window'.

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With margins under pressure, tactics that worked in 2024 might now fall flat. Some sellers are holding back pre-tariff inventory to sell at full price later or even skipping major sales events to avoid losses. Prime Day 2025 will still attract millions of shoppers, but lighter deals could make it less compelling, opening the door for rivals like Walmart to swoop in? In short, you must overhaul your Amazon Prime Day pricing strategy to deliver value without draining profit.

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Preserving Profit Without Sacrificing Competitiveness

The goal now is to preserve profit without losing your competitive edge. That balancing act is central to any Amazon Prime Day pricing strategy. Start by building tariff costs into your pricing and adjusting accordingly. Instead of waiting until margins are underwater, implement small price increases of 2–5% now rather than one big jump later. Gradual tweaks let you gauge customer reaction and avoid sticker shock.

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Equally important, watch your competition. If everyone’s costs are up, shoppers may tolerate modest price hikes – especially if you move first while competitors are still selling through cheaper stock. Identify which products can bear a price bump and which might need alternatives (bundles, value-adds, or smaller discounts) to stay attractive.

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Temporary Tariff Relief: A 90-Day Window

In May 2025, a 90-day tariff truce cut U.S. import duties from 145% to around 30%. If possible, expedite shipments or stock up extra inventory during this window to lock in lower costs. Even a 5–10% drop in unit cost can give you more pricing flexibility. Just plan carefully! Unless a broader deal is struck, tariffs return after August. Take advantage of the break, but don’t bank on it as a long-term fix to your Amazon Prime Day pricing strategy.

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Pricing Optimization Tools and Tactics

Leverage automation and data to optimize your Amazon Prime Day pricing strategy. AI-driven repricers can dynamically adjust prices within your profit limits, reacting to cost changes and competitor moves. For example, a good repricer will enforce a price floor that accounts for tariff-inflated costs and even watch competitors’ stock levels to prevent needless price wars.

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Also, use Amazon’s promotional tools wisely instead of blanket markdowns. A small coupon or Lightning Deal on a tariff-hit item can entice buyers without permanently slashing your price. Likewise, you can clear out older, lower-cost stock with bigger discounts to free up cash and space for new inventory. Targeted promos like these let you boost sales while preserving margins.

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Monitoring Consumer Behavior Shifts

Analysts warn that weaker Prime Day deals could send bargain-hunters – even Prime members – to competitors like Walmart, so build that reality into your Amazon Prime Day pricing strategy. If your offer isn’t competitive or clearly worth the price, you risk losing the sale. Stay alert to the wider market and be ready to adjust or add value (bundles, extras) to keep customers interested.