
22/07/2025
For Some Businesses, the Best Prime Day Plan
Is to Skip It AltogetherThe sales bumps from
Amazon’s big promotion weren’t worth high fees
and return rates for several entrepreneurs.
Jen Street participated in her first Prime Day
in July 2023. When her handmade ornament
business Forged Flare joined Amazon a year
prior, it achieved its best-ever sales year.
And while demand for Forged Flare’s products
on the e-commerce platform slowed in 2023,
Street says she continued to send products to
Prime warehouses “on the offhand that things
would improve.” After all, she viewed Amazon
as a “side shop”—Forged Flare’s primary sales
channel is its own website.
The business did fairly well that Prime Day,
according to Street, but continued to
experience an Amazon slump for the rest of the
year. When Prime Day rolled around again in
2024, Forged Flare went all out, advertising
the sale through its online storefront, email
newsletters, and social-media accounts. Even
so, the business was nowhere near as
successful as it was in 2023, Street says.
After that experience, Street decided to skip
out on Prime Day this year, despite the fact
that U.S. online spending reached $24.1
billion during the sales event, according to
Reuters. “It’s just too much work for too
little return at this point,” she says. And
Street is not the only small-business owner
making this calculus.
High fees, low margins
Blair Calder, founder of Automatic Trap
Company, which sells imported rodent traps,
describes Amazon as “a constant issue” for his
business. Take Amazon’s 15-percent commission
fee, for example. “As a distributor, you’re
not always dealing with massive margins,” he
says. “You might have a 40-percent, 30-
percent, even 25-percent gross margin on a
product. Take 15 points of that away, and that
really stings.”
Automatic Trap has participated in Prime Day
in the past. Calder says that while he did see
a sales lift, further discounting his products
“in order to compete with everyone in that
particular window just doesn’t make sense.”
Nancey Harris and Tracy Green, the co-founders
of Brooklyn-based Vontélle Eyewear, also chose
to opt out of Prime Day 2025 after
participating in the sales event for the past
two and a half years. Like Calder, they say
that Amazon’s fees and Prime Day discounts
were cutting too deeply into their margins.
Vontélle’s best-selling products on Amazon—
children’s glasses—are already at a low price
point, Harris says. When the business
discounts them further, “the low margins
really do eat away at our overall cost.”
Tariffs are making Prime Day riskier
Vontélle manufactures its products in China,
Vietnam, and the Philippines, all of which
have been hit by high tariffs. Because of
this, the business is now dealing with a
significant decrease in wholesale orders,
according to Harris. “They don’t want to
inherit the cost of the tariffs that we have
to now include as part of our overall
billing,” she says.
Green says this was another major factor in
Vontélle’s decision to sit out Prime Day. She
and Harris looked at their projected costs and
realized they wouldn’t be “making any money”
from the sales event, but rather “doing it
just to do it.”
Dog-washing appliance company Rinseroo also
imports products from China, according to its
founder, Lisa Lane. The business, which
appeared on Shark Tank earlier this year and
is projecting $7 million in sales over 2025,
has never participated in Prime Day. Still,
every time the sales event comes around, Lane
says she wonders, “Are we fools to not
participate?”
Earlier this year, Lane says Rinseroo’s
inventory got stuck at port for about six
weeks. During that period, Amazon storefront’s
inventory got “very low” and the e-commerce
company began charging her “pretty
significant” fees: nearly $2 per unit at its
highest.
Since this year’s Prime Day event lasted four
days, Lane worried that if she made more sales
than projected, she’d again get hit with low
inventory fees. “What if we did five times the
volume in four days?” she asked herself. “Can
we afford to run out of stock?”
“No questions asked” returns
Returns are another pain point for these small
businesses. Calder, Lane, Green, and Harris
all report that return rates are much higher
on Amazon than on their own websites. Green
and Harris say that Vontélle’s Amazon
customers often purchase several glasses in
different colors, try them on at home, then
return all but one favorite. Street says she’s
seen customers buy products from Amazon, find
the item at a lower price on her own website,
purchase that item instead, then return the
Amazon product.
Amazon’s “no questions asked” return policy is
frustrating, Street says, because “no matter
the reason,” her business has to pay for
shipping and her seller score gets penalized.
Calder echoes this sentiment. He estimates
Automatic Trap’s return rate is about four
times lower because his team takes the time to
ask customers questions and give them advice
on how to better make use of their products.
“At the end of the day, if they bought the
product to kill a rat, they want to kill the
rat,” he says. “So if we can help them still
achieve that objective, then they’ll be on
board for that, and they’ll try it. And you
know what? Three out of four of those times it
works.”
How you can decide if Prime Day is worth it
Every business is different, and some greatly
benefit from Prime Day pushes. Eight Saints
Skincare, a Portland, Maine-based skin care
brand, takes part in the sales event every
year. This year was its biggest yet, according
to Jessica Maxcy, co-founder and creative
director. Maxcy says there’s “no question” in
her mind about joining the next Prime Day: “I
just can’t imagine not participating.”
Harris says a friend of hers who sells dog
products also “does amazing on Prime.”
Overall, she says that it “just depends on
what your product is.” Businesses with
lightweight, easy-to-ship products that have
year-round customer demand—like skin care
offerings and pet toys—might find the sales
event worth doing.
Green advises asking yourself what your
products cost, what you’re selling them for,
and how much money you’d lose by participating
in Prime Day. If you’d make a big enough
return to cover variable inventory and return
fees, try it once. After your first Prime Day,
Green says, you’ll know what those fees cost—
and then you can decide if you want to do it
again.