Amazon to Launch Discount Section with Direct Shipping from China to Compete with Temu

June 27, 2024 at 5:55:25 AM

TL;DR Amazon plans to launch a discount section featuring cheap items shipped directly from China, targeting the growth of bargain sites like Temu and Shein. The marketplace will offer unbranded fashion, home goods, and daily necessities with delivery in 9 to 11 days. Amazon will start signing up Chinese sellers this summer and accepting inventory in the fall. Sellers can determine their product selection and pricing.

Amazon to Launch Discount Section with Direct Shipping from China to Compete with Temu

Amazon plans to launch a new discount section on its site featuring cheap items shipped directly from China, targeting overseas consumers. This move is Amazon's most aggressive response to the rise of bargain sites like Temu and Shein. The new marketplace will offer unbranded fashion, home goods, and daily necessities, with delivery times ranging from 9 to 11 days.

Key Details

  • Product Range: Unbranded fashion, home goods, and daily necessities.
  • Delivery Time: 9 to 11 days.
  • Seller Flexibility: Sellers can determine product selection, pricing, and produce in small batches to test demand.
  • Launch Timeline: Merchant sign-ups start this summer, with inventory acceptance beginning in the fall.

Additional Information

  • Customs Duties: It is unclear if shipments will use the U.S. trade provision that exempts packages under $800 from customs duties.
  • Competitors: Shein and Temu, which also use expedited clearance for direct-to-consumer shipments valued at $800 or less.

An Amazon spokesperson stated to The Information that the company is always exploring new ways to offer more selection, lower prices, and greater convenience to customers.

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