Walmart Cuts Prices as Amazon Raises Them

Amazon's Price Adjustments Amid Changing Trade Policies

Recent reports have highlighted that Amazon quietly increased prices on household essentials following the introduction of tariffs during President Donald Trump's second term. As trade policies evolved, the e-commerce giant raised costs on numerous everyday items without informing customers.

Tracking Price Changes on Amazon

According to an analysis conducted by The Wall Street Journal, nearly 2,500 household items sold on Amazon were reviewed between January 20 and July 1 to monitor price changes. The study found that 1,200 of these items experienced an increase in price. Notable examples include a 30% rise in the cost of a can of Campbell’s soup, which went from $1.98 to $2.58. Other essential items such as deodorant, detergent, and food products saw at least a 5% increase.

Amazon responded to the report by stating that the Journal's analysis does not accurately represent the company's overall pricing strategy. In a statement, the company emphasized, "We have not seen the average prices of products offered in our store change up or down appreciably. Our commitment to offering low prices—not relative percentage changes—is what delivers the most value to our customers."

Specific Examples of Price Increases

One example cited in the report involved a metal storage basket from an Ohio-based company, Dayglow. The product's price on Amazon rose from $9.31 to $19.99. However, the same item remained stable or even decreased in price on Walmart and Target websites. The manufacturer confirmed that it had not raised wholesale prices, despite higher import costs due to new tariffs.

Amazon's Response to the Report

In an email to Straight Arrow News, an Amazon spokesperson claimed the Journal's report was not only false but misleading. The company stated, "This study is seriously flawed, cherry picking a mere 2,500 items out of the hundreds of millions we sell, and failing to accurately compare like-for-like offers in stock and available for sale across retailers. For the full set of 2,500 items investigated, we found the vast majority had no price change or a price decrease, and further we were still competitively priced compared to other retailers."

Amazon argued that the review focused only on the most and least expensive items, ignoring the wide range of pricing structures across different product categories. The company also emphasized that comparing identical items with the same features, packaging, and availability provides a more accurate view of price competitiveness. Many of the products mentioned in the report were out of stock at other retailers during the review period.

Additionally, Amazon pointed out that using just two snapshots in time—January to June—misses the typical price fluctuations that occur throughout the year.

Walmart Cuts Prices While Amazon Faces Tighter Margins

In April, Amazon announced its intention to maintain low prices, but recent data tells a different story. According to the Journal, prices rose on about 1,200 of Amazon's lowest-cost household items. Data provided by e-commerce analytics firm Traject Data also showed that Walmart took the opposite approach, cutting prices on nearly identical products by around 2%.

The Journal reported that Amazon struggles to make a profit on low-cost essentials because shipping costs eat into its already narrow profit margins. Corey Thomas, a consultant who works with Amazon vendors, noted that Walmart has more flexibility since many online shoppers also make in-store purchases, helping counteract losses.

Trump's Response to Tariffs and Retailers

Since returning to office, President Trump's administration has expanded tariffs on goods imported from countries like China, raising costs for manufacturers and retailers. Walmart's top executive, Doug McMillon, met with President Trump at the White House in April alongside other retail leaders to raise concerns about how new tariffs could affect shoppers.

A month later, the company warned the administration that the added import duties were likely to increase prices on basic goods, ranging from groceries to child safety products. In response, Trump criticized Walmart on Truth Social, stating the company makes billions of dollars and should "eat the tariffs" rather than pass on added costs to its "valued customers."