INSIGHT: How retailers will manage tariff costs during July sales events

Several retailers are launching July sales events to compete with Prime Day.

Retailers holding July sales to compete with Amazon’s Prime Day event are likely to employ several tactics to entice shoppers who are wary of tariff-based price hikes.

Huseyn Abdulla, assistant professor of supply chain management at the University of Tennessee, Knoxville, Haslam College of Business, has shared new predictions on how retailers are responding to tariff complications in their sales preparations.

Abdullah noted that one step retailers will take during the big July sales is promoting their own branded products and American-made goods as their biggest deals. Amazon has led the way in this effector, as its in-house brands, like its subscription services Kindle Unlimited and Audible, Fire tablets and Echo devices, are featured in their promotions for this year’s event.

“Expect other retailers holding sales to respond similarly,” he said. “Also, sellers could emphasize ‘Made in the USA’ goods from independent producers, which likewise are not affected by tariffs. This could add the allure of appealing to buyers’ sense of patriotism.”

Abdulla said that Prime Day’s success is partly driven by “advanced dynamic pricing algorithms and compulsive purchase-inducing tactics.” Because of this, consumers should be “alert” to retailers’ attempts to make deals look better than they are. 

Promotions like Lightning Deals and Prime Exclusive Discounts may show a higher “original price” as an anchor, leading to a perception of a deal being better than it actually is.