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UK Retail Sales Drop for First Time Since February 2025

Amazon's ad revenue growth contrasts with third-party sellers' struggles. Long-term sellers are reassessing their Amazon operations amidst economic uncertainty.

In this image there is a super market, in that super market there are groceries.
In this image there is a super market, in that super market there are groceries.

UK Retail Sales Drop for First Time Since February 2025

Retail sales in the UK have seen their first monthly drop since February 2025, with a 0.33% decrease in June, according to the National Retail Federation's CNBC/NRF Retail Monitor. Sellers have cited challenges, including visibility issues and Amazon's advertising strategies, amidst economic uncertainty.

Amazon's advertising revenue soared to $15.7 billion in Q2 2025, up 22% from the previous year. However, many third-party sellers reported dismal Prime Day 2025 results, with some experiencing no sales boost or even losses. Long-term sellers face unprecedented challenges, with many contemplating leaving Amazon.

Tariffs and trade policy changes have hit Chinese producers hard. Representatives from the Shanghai Dragon Corporation reported significant sales drops between May and August. Multiple sellers blamed tariff-related cost increases and increased competition for their declining sales. Economic concerns, including high living costs, are also affecting consumer spending patterns.

The retail sector faces a challenging period, with sales declining and sellers struggling with various pressures. Amazon's advertising revenue growth contrasts with the difficulties faced by third-party sellers. Long-term sellers are reassessing their Amazon operations, with some planning to leave the platform. The future of retail remains uncertain amidst ongoing economic uncertainty.

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