Amazon sellers are feeling better about Prime Day, but they’re still watching margins

The sale arrives after a turbulent spring for many merchants, who grappled with a series of Amazon policy changes, new fees and concerns about cash flow. But unlike last year, when tariff uncertainty dominated conversations among sellers, many brands say they now have a clearer picture of their costs heading into one of Amazon’s biggest shopping events.

While higher fuel, logistics and advertising costs continue to pressure margins, sellers say the tariff angst that overshadowed last year’s Prime Day has eased, making it easier to plan promotions and inventory. Some also believe Amazon’s decision to move Prime Day to late June could boost demand for seasonal categories such as outdoor goods. Sellers and consultants told Modern Retail that the mood is generally more positive than it was a year ago.

“People are excited for Prime Day, and people are less pessimistic about Prime Day summer than they were last year,” said Adam Wilkens, founder of Amazon consultancy Dotcom Reps, which advises around 30 merchants. Wilkens said Prime Day is “widely anticipated” among many sellers. Last year, he said, “There was a reluctance or uncertainty around tariffs that is no longer an uncertainty.”

Still, many brands are grappling with higher costs tied to fuel prices and petroleum-based materials. Wilkens said some sellers have decided to sit out the event because they have not yet finalized pricing changes and do not want to discount products before understanding their margins. Others are participating but opting for the minimum markdown needed to qualify for Prime Day promotional badges.

Monil Kothari, founder of fine jewelry brand Haus of Brilliance, said lower duties have given his company more flexibility heading into Prime Day. While he may offer discounts of about 25% on some products, compared with roughly 20% last year, he plans to be more restrained with some of his best sellers because they have performed well this year. Kothari said one of his top-selling chain styles sold through inventory faster than expected before Prime Day even began, with two variants selling out ahead of the event. As a result, he sees little reason to offer steep markdowns on products that are already in high demand.

“I don’t think I want to discount that hard,” he said, adding that he wants to preserve margin ahead of the holiday season.

The caution reflects a broader effort by sellers to protect profitability after a year marked by higher costs. Amazon introduced a fuel and logistics surcharge this spring and proposed changes to advertising payments and seller payouts that sparked backlash among merchants.

Gwen McShea, founder of retail consulting firm Lean Edge Marketing, said many sellers were rattled earlier this year by Amazon’s payout changes.

“There was a lot of angst in late March, early April,” McShea said. The changes created uncertainty for some merchants who were already operating on tight budgets. “We had complete panic amongst our clients” after the payout adjustments rolled out, McShea said. 

An Amazon spokesperson previously told Modern Retail, “The recent changes to advertising payment methods and reserve settings align a small subset of sellers with standard practices already used by an overwhelming majority of our selling partners.”

Phil Masiello, founder of Amazon agency CrunchGrowth, said many of the brands he works with have tempered expectations for unit sales because higher costs have pushed prices upward. Despite a projected 4-5% increase in dollar value, unit sales are expected to decrease, he said. 

One wildcard this year is timing. Amazon traditionally held Prime Day in July, but the company moved the event to late June. The last time Amazon held Prime Day in June was in 2021. Sellers are divided on whether the earlier date will help or hurt sales. 

Chuck Gregorich, founder of outdoor products company Net Health Shops, said he expects this year’s Prime Day to outperform last year’s for his business. Since Prime Day is taking place earlier in the summer, shoppers are still actively buying seasonal products such as patio furniture and fire pits. The earlier date also gives him more room to discount products that are still in season without worrying that consumers will postpone purchases until the following year.

McShea said she is curious to see how shoppers respond after years of associating Prime Day with July. “People are conditioned to have it in mid-July,” she said.

The earlier timing has also accelerated the broader summer promotional calendar. In recent years, retailers including Walmart and Target have launched competing sales alongside Prime Day in an effort to capture some of the event’s shopping momentum.

Both retailers are following Amazon’s lead this year. Walmart recently announced that its weeklong Walmart Deals event will run from June 22 through June 28, several weeks earlier than last year’s sale, which took place in July. Target has likewise moved up its Target Circle Deal Days promotion, which is scheduled for June 23 through June 26 after running in July last year.

There are also signs that consumers may be more willing to participate in Prime Day this year. According to a recent survey from marketing platform Omnisend, 55% of consumers said they plan to shop Prime Day this year, up from 45% who reported shopping the event last year. Two-thirds of respondents said they expect to spend the same amount or more than they did during last year’s Prime Day. Apparel and electronics rank among the most popular planned purchases, while a sizable share of consumers also said they intend to stock up on groceries and household essentials.

Masiello said moving Prime Day earlier could help sellers capture demand before consumers leave for summer vacations.

“When you think about it, people go away for July 4 or for vacations, and once July starts, they’re gone for a week or two,” Masiello said. “So they may not be worrying about Prime Day or thinking about Prime Day.”