Pricing Pressure to Profit: Amazon’s Strategic Response to Tariffs and Inflation
By investing heavily in regional fulfillment centers in Vietnam, India, and Mexico, Amazon enables merchants to lower tariff burdens and mitigate disruptions from geopolitical tensions. Notably, Amazon has absorbed a meaningful portion of increased shipping and import costs, maintaining competitive marketplace pricing and customer loyalty despite rising operational pressures. Amazon’s proactive strategies also include tariff engineering, enhancing its competitive positioning and resilience.
