July 22, 2024, 4:06 pm

Amazon’s New Bargain Section Targets Low-Priced Chinese Goods

Sarakhon Desk
  • Update Time : Thursday, June 27, 2024

Amazon Launches Temu-Style Bargain Corner
Amazon is set to introduce a new section on its website dedicated to unbranded products under $20, shipped directly from China, in response to the growing competition from Chinese e-commerce platforms Temu and Shein.

 

Amazon’s Strategic Move
– New Section: The U.S. e-commerce giant will launch a dedicated section similar to Temu, offering low-cost goods.
-Vendor Collaboration: Amazon has begun holding sessions with Chinese vendors in Shenzhen to streamline this new initiative.
– Logistics and Services: Amazon will handle inventory and customer service, aiming to offer lower prices and more convenience.

Competing with Chinese Rivals
– Pricing and Control: Unlike Temu, Amazon allows sellers to set their own prices, aiming to provide better quality control.
– User Experience: Amazon plans to leverage its extensive user data to offer affordable products and an engaging shopping experience.

Impact and Industry Response
– Vendor Perspectives: While Temu’s pricing control has led to vendor protests, Amazon’s approach is seen as more flexible.
– Legislative Concerns: U.S. lawmakers are scrutinizing import rules that benefit platforms like Temu and Shein, but Amazon’s strategy remains unaffected for now.

Growth and Future Prospects
Chinese Market Integration: Amazon’s new Shenzhen innovation center supports Chinese sellers in reaching global markets.
Sales Growth: In 2023, Chinese sellers on Amazon saw a significant increase in sales, highlighting the potential of this new venture.

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