Amazon is planning to launch a new section that will offer low-priced merchandise as a response to the increasing competition with Temu and Shein.
The dedicated section will allow Chinese sellers to ship their products directly to U.S. consumers, expanding the e-commerce giant's reach.
Amazon to Expand Low-Cost Offering Directly From China
In an invite-only conference for Chinese sellers, Amazon reportedly announced its new attempt to close off the battle with Temu and Shein. Both companies have a connection with China, allowing sellers to market their items at low prices.
The new storefront will focus on selling unbranded items, with the majority of them being under $20. Items like gua sha facial massaging tools and phone cases are expected to be part of the sale.
Amazon presented that the products will be shipped directly from China to the U.S. The goal is to deliver the merchandise to shoppers within nine to 11 days.
Prior to this plan, Chinese sellers had to send their items to warehouses in the U.S. before they were delivered to customers which added the waiting time. Amazon took care of the items through its fulfillment services.
Amazon to Test Low-Cost Storefront Soon
The merchants would be allowed to test new items using small-batch production, a similar technique used by Shein. For starters, the sellers will only produce a limited quantity and will only manufacture more once the demand increases.
"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 Maria Boschetti, Amazon's spokesperson.
Meanwhile, both Temu and Shein have successfully established their presence in the U.S. market. Several American shoppers are lured to huge discounts offered by these companies from clothing to home goods.
Amazon has yet to announce the release date of its new storefront.
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