Amazon has reportedly canceled a major inventory order from China and other Asian countries, leaving several vendors burdened with unsold stock worth hundreds of thousands of dollars.
According to a document reviewed by Bloomberg, the canceled items included beach chairs, scooters, and air conditioners. Additional orders placed in Vietnam and Thailand were also scrapped.
While Amazon acknowledged that it relies heavily on China-based suppliers for both components and finished goods, the company declined to comment on the specific cancellations.
These cancellations occurred just before Donald Trump announced a sharp increase in tariffs on Chinese imports to 125%, while simultaneously introducing a temporary 90-day pause with a reduced 10% reciprocal tariff. This surprise move helped stabilize the market after days of volatility.
Bloomberg learned about the Amazon cancellations through a long-time vendor who sells beach chairs on the platform.
The vendor received an email stating that some shipments had been canceled “in error” and was instructed not to proceed with sending the products. No mention of tariffs was included in the communication.
The vendor, speaking anonymously to avoid retaliation, said that a $500,000 wholesale order had been canceled after production was already completed, leaving them stuck with the merchandise.
They are now scrambling to find alternative buyers. According to the vendor, this kind of situation had never happened before.
Amazon typically acts as the official importer for such goods, meaning it handles tariff payments when products are shipped from overseas factories to its U.S. warehouses. This system allows Amazon to benefit from bulk shipping discounts, giving it a financial edge over individual vendors.
Scott Miller, a former Amazon vendor manager who now runs the e-commerce consulting firm pdPlus in Minneapolis, said he’s seen several clients hit with similar last-minute order cancellations. He warned that the trend may force sellers to revisit and renegotiate their terms with Amazon.
“Amazon holds all of the cards,” Miller said. “The only real options vendors have now are to sell the stock in other markets at reduced profits or to look for new retail partners.”