Amazon just sent a shockwave through its Asia-based supply chainand investors are paying attention. The e-commerce giant (NASDAQ:AMZN) abruptly canceled bulk orders for beach chairs, scooters, and air conditioners from suppliers in China, Vietnam, and Thailand, right after Trump's April 2 tariff announcement targeting over 180 countries. Amazon didn't say much publicly, but vendors aren't buying the silence. One long-time partner saw a $500,000 order vanish after the goods were already madeleft holding the bag with no explanation beyond a cold email saying the order was placed in error.

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Here's what's really happening: Amazon is quietly backing out of its direct-import model, where it used to handle logistics and tariffs in exchange for wholesale pricing. Now? That risk is back on vendors. And it's not just one or two cases. Multiple sellers are seeing the same patternorders canceled without warning, costs shifted, and inventory piling up. Former Amazon exec Scott Miller says this is happening to several of his clients and calls it what it is: Amazon flexing its leverage. Vendors now face two bad optionsdump their goods at a loss or hunt for new buyers fast.

For investors, the impact is starting to show. About 40% of Amazon's sales come from direct purchases like these, and a pullback could squeeze margins if the company shifts to higher-cost alternatives or sees backlash from suppliers. Baird has already slashed its 2025 revenue forecast, citing tariff pressure. Amazon's stock is down nearly 22% year-to-dateunderperforming even a weak S&P 500. The big question now: is this a short-term reaction or the early signs of Amazon rewiring its global sourcing strategy altogether? Either way, it's a development worth watching.