Not enough jazz

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Amazon’s summer Prime Day could be light on deals as sellers don’t want to quickly sell through the inventory they stocked up on before tariffs hit.

Three agency heads told Retail Brew that instead of going all-in on Prime Day, some Amazon sellers are being pickier and more strategic about how they discount their catalogs. In the last few months, some Amazon sellers have also had to raise prices by 15%–20% due to costs tied to tariffs.

Put together, the Amazon experts said many brands are hesitant to commit to even Prime Day sales, because the market feels unpredictable and sellers are worried about running out of inventory too quickly.

“In general, we are seeing less deal submissions this year as clients handle their pre-tariff inventory like gold,” Ryan Craver, founder of commerce agency Commerce Canal, told Retail Brew in an email.. “They all have enough stock now but several are seeing light inventory in Q4 and the tariff relief from Amazon has been mixed at best.”

Amazon CEO Andy Jassy recently said the company is “maniacally focused” on keeping prices low for shoppers.

However, with tariffs driving up product costs, brands are in a tough spot, Kyle Olson, VP of client services at Amazon seller agency Podean, wrote in an email. Brands can’t afford to both pay more for their products and offer big discounts, he added.

“We have heard that Amazon has had fewer submissions than prior years in their marquee placements (Top Deal, Lightning Deal) which reinforces this perspective as most brands take a more conservative and sensitive approach,” Olson said. “Many of our brands have been leaning into other areas that still offer reach but are more nimble or less directly impactful to the bottom line.”

Keep reading here.—VC

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STORES

Great import

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The 90-day pause on the Trump administration’s steepest China tariffs is set to cause a surge in imports at major container ports, according to a new report from the National Retail Federation and Hackett Associates.

The pause comes at a crucial moment for retailers as they enter the back-to-school season and prepare for the Q4 holiday season, NRF Vice President for Supply Chain and Customs Policy Jonathan Gold explained.

“Retailers had paused their purchases and imports previously because of the significantly high tariffs,” he said. “They are now looking to get those orders and cargo moving in order to bring as much merchandise into the country as they can before the reciprocal tariff and additional China tariff pauses end in July and August.”

The goal is to make sure consumers have access to the right products at the right price, he added, and for the moment that means stocking up while the getting is good.

Keep reading here.—AV

RETAIL

Toying with the idea

Illustration: Anna Kim, Photos: Mattel, OpenAI

The Fisher-Price See ’n Say could start debating your toddler. Toymaker Mattel announced a partnership yesterday with OpenAI to use AI technology in its toys and experiences—and to help design them.

The company hasn’t brought out a Barbie M3gan…yet, but Mattel said it will likely debut its first AI-powered product later this year:

OpenAI COO Brad Lightcap didn’t give many details about what that product would look like, but floated examples to Bloomberg like UNO or Magic 8 Ball using AI to be more interactive.
The toy company is planning to use the tech for fan experiences, including at its Mattel Adventure Parks.

Despite sounding like a horror movie premise, the company’s announcement maintained that the partnership “will bring the magic of AI to age-appropriate play experiences with an emphasis on innovation, privacy, and safety.”

Keep reading here on Morning Brew.—MM

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SWAPPING SKUS

Today’s top retail reads.

Stable crypto: Amazon and Walmart are looking to launch their own stablecoins as merchants explore this cryptocurrency to move high-volume cash or card transactions.. (the Wall Street Journal)

Setting sail: President Trump is imposing new fees on floating garages to revive US shipbuilding. (the New York Times)

Smash success: Wayfair’s store model seems to be working with two more locations on the way. (Business of Home)

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