Core Insights - Amazon's Prime Day is facing a decline in participation from third-party sellers, particularly those selling Chinese-manufactured goods, due to increased tariffs and the need to protect profit margins [1][2][3] - The significance of Prime Day is highlighted as one of Amazon's most important shopping events, second only to Black Friday and Cyber Monday, but the current environment poses challenges for sellers [2][3] Group 1: Seller Participation - Many third-party sellers are opting out of Prime Day or reducing the number of discounted items due to high tariffs imposed on imports [1][2] - Steve Green, a seller of bicycles and skateboards, stated this will be his first time not participating since 2020, citing that tariffs have doubled the cost of new imports [1] - Kim Vaccarella, CEO of Bogg Bag, is also not participating to preserve unsold inventory and is shifting production from China to Cambodia and Vietnam [2] Group 2: Financial Implications - The exit of third-party sellers may lead to reduced fees and advertising revenue for Amazon, as well as a more limited selection of discounted products [3] - Historically, Prime Day has generated significant sales and contributed to the growth of new Prime memberships, which cost $14.99 per month or $139 annually [3] Group 3: Market Response - Amazon has invested millions in advertising for Prime Day, promoting the event to its approximately 200 million Prime members [2] - Analysts express concern for third-party sellers, indicating that while Amazon itself may not face major issues, the sellers are likely to be the most affected by the current tariff situation [2]