Amazon plans discount store to compete with Temu and Shein

Amazon is expected to take a direct shot at Temu and Shein, offering U.S. shoppers a chance to buy cheap products shipped from China - ConsumerAffairs

Low-price apparel and home goods to be shipped directly from China

Could Amazon be stopping Temu and Shein in their tracks? That’s what it looks like.

The king of all online retail is gearing up to launch an online storefront focused on low-priced apparel and home goods, marking its most significant effort yet to challenge much cheaper competitors like Temu and Shein.

According to The Information, Amazon intends to ship goods directly from China to consumers around the world. Until now, Amazon has maintained its competitive edge with promises of fast shipping by urging Chinese merchants to use logistics services that centralize merchandise in warehouses based in the United States.

Bloomberg reports that the new discount store will have its own dedicated section on Amazon’s website, but for the time being, is currently open only to invited sellers.

“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” said Amazon spokesperson Maria Boschetti in response to questions about the program, initially reported by The Information.

What consumers can expect

Why is this happening? “It has to do with Amazon's current structure of their fees and the disadvantage it gives them over Temu,” Brandon Young, an eight-figure Amazon seller said in a YouTube video explaining the reasons behind the move.

“This move aims to counter the threat posed by Temu, which has been steadily gaining traction in the online marketplace.

”Don’t expect to find high quality products at Temu-like prices, suggests Young. Rather, you’ll get the same low-cost, unbranded goods that Temu and Shein offer. 

Young says not to expect Prime-like speedy delivery either – more like the eight to 11 day delivery that Temu and Shein give. 

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