Amazon to rival Temu with plans to launch discount section shipped from China
Amazon will launch a dedicated section on its shopping site that resembles the Chinese bargain site Temu. According to The… Continue reading Amazon to rival Temu with plans to launch discount section shipped from China
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Amazon will launch a dedicated section on its shopping site that resembles the Chinese bargain site Temu.
According to The Information, the marketplace will feature items shipped to overseas consumers from warehouses in China.
It will include unbranded fashion, home goods, and daily necessities, with the publisher citing slides that it claims have already been shown to sellers in China.
If correct, this will be Amazon’s most aggressive response yet to the boom of cheap marketplaces like Shein, Temu, and AliExpress. And unlike the next-day delivery that the multinational company has become known for, the products will instead take between 9 to 11 days to reach customers.
In a recent closed-door meeting, as reported by the publisher, the e-commerce giant told sellers it would start signing up merchants this summer and will accept inventory from the fall.
The merchants would determine their product selection and pricing, with testing of demand for new products to be done so through producing small batches.
The inner workings of the potential new approach to cheap items aren’t yet known, it’s not clear if the shipments will be made using a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties.
Amazon hasn’t yet confirmed nor denied the report, but a spokesperson did respond to Reuters request for a comment: “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
Amazon’s value soars to over $2tn
On June 26, the company joined the $2 trillion market cap club as its shares increased to an all-time high of $193.61.
The American business now sits amongst the likes of Microsoft, Apple, Nvidia, and Alphabet who had previously reached this benchmark.
This came at a time when Amazon had its most profitable quarter ever as well, with operating income soaring over 200% to $15.3 billion.
Featured Image: Via Ideogram
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