The news: Relations between Amazon and its wholesale partners are under strain as the company resists brands’ efforts to raise prices to offset tariffs, oil costs, and other expenses, according to a report by The Information.

The tension is causing brands to rethink their approach to selling on Amazon. Some are scaling back their assortments, pulling low-margin products from the site, or working with third-party sellers to list items on Amazon’s marketplace.

The implications: Amazon’s decision to hold firm on pricing and force brands to absorb higher costs reflects, in part, its market power: The retailer accounts for nearly 40% of US ecommerce sales, making it an indispensable channel for many brands. Doing so allows it to preserve profits, which can be used to offset expenses in other areas of its business—such as its costly grocery push or sizable investments in AI infrastructure.

Amazon’s hardened stance toward wholesalers could potentially herald a broader shift in ecommerce tactics. Jason Landro, co-CEO of ecommerce marketing agency Nectar, told The Information that the approach indicates that “Amazon is moving away from products that really don’t work online,” which would be a notable deviation from its “everything store” strategy. However, even if Amazon’s pricing tactics are pushing brands to rethink their wholesale relationships, they are unlikely to affect the selection of items available on the retailer’s marketplace, which accounts for over 60% of its overall sales.