When the U. S. government announced higher tariffs in April, many industry experts thought more Amazon sellers would try to sell in different countries to avoid relying on the U. S. alone. The idea was that with higher costs for bringing goods in, sellers would want to reduce their risks by expanding to other markets.
But after several months, that hasn’t happened.
A recent study shows that almost 69% of Amazon sellers are still only selling in the U. S. , just like they were before the tariffs went up.
This might seem strange.
If selling in the U. S. has become more expensive, why aren’t more businesses trying to reach customers in Europe, Canada, or Australia? The reason is that expanding to other markets on Amazon is tough, and for many sellers, it’s better to stick with what they know.
The Allure—and the Reality—of International Expansion
On paper, going global is extremely enticing. Having the ability to access new clients, earn more money, and guard against issues at home is tempting. But it is not that easy in real life. Selling overseas is a complex business that requires more than leaving your products on a foreign platform.
First, you must learn about the local market.
Each location has various likes of customers, how folks purchase products, and what is happening in the competition. What is hot in the U. S. may not fly in Germany or Japan. To be successful, you must understand plenty about neighborhood trends, frequently searched terms, holiday fluctuations, and marketing your products properly.
Then there are the financial and legal issues.
Every nation has their own tax regulations, compliance requirements, and import regulations. You may have to register for VAT in the UK, for instance, or meet detailed labeling requirements in the EU. Sellers report that merely dealing with the paperwork can take months to prepare. For smaller brands with limited means, this can be hugely challenging.
Logistics are also a huge challenge.
Shipment to other nations entails longer delivery times, increased shipping costs to ship products, and greater returns. Even with Amazon’s FBA program, you still must deal with importing inventory across international borders, clearing customs, and handling fluctuating shipping charges.
Finally, there is a strategic rationale that is commonly overlooked: the size of the U.
S. marketplace in itself. It’s so vast that international expansion can be difficult to handle without meticulous planning.
The Power of U.S. Demand
The U.S. remains Amazon’s biggest and most lucrative market by a wide margin. Its traffic dwarfs the combined volume of all 22 other Amazon marketplaces. Sellers know that no other platform can match the reach and predictability of American demand.
This scale provides economies that are hard to replicate abroad. Advertising is more efficient because of better targeting data. Reviews and social proof accumulate faster, fueling conversions. And customer expectations—while high—are more familiar.
So while tariffs have certainly raised costs, they haven’t fundamentally altered this equation. For many sellers, the simplicity of focusing on one well-understood market outweighs the potential upside of expansion.
Why Tariffs Alone Aren’t Enough
The recent increase in tariffs has certainly made it more difficult for certain companies to maintain their profits unchanged, particularly those that source a high percentage of their goods from Asia. Yet, the majority of veteran vendors have already adapted by altering their agreements with wholesalers, revising their prices, or streamlining their supply chains.
Briefly, higher costs are a nuisance, but they’re not compelling companies to entirely alter the way they conduct business.
The majority of the sellers still think that the U. S. is the best and most trustworthy destination to develop their brands.
Advice for Sellers Considering Expansion
This doesn’t mean expanding globally is a bad plan. For companies that have the right tools and knowledge, selling in other countries can really help them grow. But you shouldn’t just jump into it because tariffs have gone up.
If you’re considering entering new markets, treat it like a careful, thoughtful project.
Spend time learning about the rules in each country, what customers expect, and how things work there. Think about whether you can handle multiple markets without letting your home business suffer.
Most importantly, work with people who know how to do business across borders.
Whether it’s tax experts or shipping companies, having the right help can make all the difference between a successful start and a big mistake.
Conclusion
The idea that high tariffs would cause a big number of U.
S. -based Amazon sellers to leave hasn’t happened—and that’s because of good reasons. Even though costs have gone up, the U. S. market still offers enough benefits to keep most sellers here.
Going international is still a great chance, but it needs planning, skills, and a clear plan—not just a quick reaction to new rules.
If you’re thinking about moving, take time to look at both the chances and the risks.
The best growth happens when you make thoughtful choices, not rushed ones. In today’s complicated online shopping world, that’s more important than ever.
