Amazon is all set to launch a new discounted section that will ship products directly from China, competing with Temu and Shein. Customers can anticipate budget-friendly clothing, home goods, and other items.
Amazon.com is preparing to introduce a revolutionary discount section that'll ship inexpensive items directly from Chinese manufacturers. This strategic decision comes in response to compete with the growing popularity of discount retailers such as Temu and Shein.
The E-commerce giant told Chinese retailers at a recent meeting that it would begin signing up merchants this summer and start accepting orders in late fall. The report added that the buyers who join a discount site can decide on their product selection and price, then produce in small batches to assess demand for the products they intend to launch.
When contacted for comment on the report, an Amazon spokesperson told Reuters news agency “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
Unlike before, when Chinese merchants used US-based warehouses, Amazon will now ship goods directly from China to customers.
The new discount mall will have a dedicated section on Amazon’s website, initially accessible only to invited sellers.
This move matters because it can be a game changer for Amazon and impact the competition.
Temu and Shein have disrupted the market with steep discounts and aggressive advertising. Amazon aims to level the playing field by offering similar value for money.
In 2024, Amazon slashed fees for merchants selling low-priced clothing, signaling its intent to compete with Shein’s bargain prices.
By providing a competing option, Amazon can further boost its sales globally. It can replicate the model in other countries if it succeeds in China and provide its clients with better options.
