Source: Caixin.
Due to the fact that American consumers increasingly prefer to consume on discount shopping platforms such as Temu and Shein, the e-commerce giant Amazon has to keep up with the times. Amazon revealed that it will establish a discount store sector that allows Chinese sellers to directly ship goods. The logistics time will be controlled within 9-11 days, and the commodity prices are expected to be below $20. This section is expected to be launched this year and is very likely to go online during the "Black Friday" period.
In this year's Super Bowl broadcast in the USA, Temu, an online shopping platform, has taken the advertising focus by storm, attracting the attention of many American consumers with its dazzling array of discount items. Since then, the Temu app has become the "sales king" of the Apple App Store and the Google Play Store in the USA, with over 100 million downloads.
The appearance of Temu$Amazon (AMZN.US)$has put a lot of pressure on everyone. Before Temu's rise to dominance, Shein, another shopping platform, had already left Amazon behind in the clothing niche. Temu's performance seems even more like an attempt to take away all the meat from Amazon's mouth, which has forced Amazon to launch its own discount channel.
Integrated news shows that Amazon is planning to launch a new section on its website, specifically providing low-cost fashion and household items, and allowing Chinese sellers to directly ship to American consumers.
According to a seller introduction provided by Amazon, the new section will feature a range of unbranded products, many of which will be priced below $20. Amazon plans to ship the products directly from China to the USA with a goal of delivery within 9-11 days.
In the past, Amazon's Chinese sellers relied on Amazon's self-operated logistics services to send products to Amazon's logistics warehouse in the USA, and then the warehouse arranged for shipment. Amazon pointed out that the new arrangement can help Amazon save costs for Chinese sellers, and sellers can test product sales by producing in small quantities.
This model is very similar to Shein's "on-demand manufacturing" management, which tests the market with limited quantities of goods and increases production as demand grows.
In addition, unlike Temu, Amazon's new section allows sellers to determine the pricing and category of their products themselves. Temu, on the other hand, is relatively strict, with the company setting the prices and also responsible for operating storefronts and conducting marketing activities for sellers.$PDD Holdings (PDD.US)$Temu, which is supported, has stricter rules. The prices of commodities are set by the company, and the company is also responsible for operating the storefront and conducting marketing activities for sellers.
If you can't beat them, join them.
Amazon spokesperson Maria Boschetti said in a statement that Amazon has been exploring new ways of partnering with sales associates to meet customer needs, but she refused to disclose specific plans and implementation timelines.
However, leaked documents for sellers show that Chinese sellers are required to register starting this summer, and Amazon will begin accepting products in the fall. Some speculate that the new section is likely to launch during this year's Black Friday shopping festival.
This is also an important step for Amazon to revive its appeal among Chinese merchants. Due to the intense competition among overseas e-commerce companies, Chinese merchants have gradually reduced their favorability towards Amazon in recent years. Chinese merchants are also an important source of supply, which has forced Amazon to change its strategy.
Amazon pointed out that in 2023, the quantity of products sold by Chinese sellers on its website increased by more than 20% year on year, and the number of Chinese merchants with sales exceeding 10 million US dollars increased by 30%.
In December of last year, Amazon also announced the establishment of a new innovation center in Shenzhen and promised to significantly reduce service fees for clothing sellers selling at prices below $20.
Editor/tolk