Amazon plans to launch a new budget storefront featuring low-cost apparel, home goods, and other items to compete with emerging e-commerce sites Temu and Shein. The storefront, announced at a closed-door event for Chinese sellers, aims to attract U.S. consumers with products priced under $20, shipped directly from China within nine to eleven days.
At an invite-only conference for Chinese sellers, Amazon unveiled its most aggressive move yet to counteract the growing influence of Temu and Shein, two popular e-commerce platforms with ties to China. These platforms have rapidly gained traction in the U.S. market by offering rock-bottom prices on a wide range of products, from clothing to electronics and home goods.
Which Products Will Be Available?
Amazon’s new storefront will focus on unbranded items, with many priced below $20. During the presentation, a variety of products, including a gua sha facial massaging tool, arm weights, and phone cases, were showcased.
This initiative allows Chinese sellers to ship products directly to U.S. consumers, reducing reliance on Amazon’s traditional fulfillment services. Previously, sellers had to send their goods to Amazon’s U.S. warehouses before dispatching them to customers.
Cost Savings for Sellers
This direct shipping model is pitched as a cost-saving measure for Amazon sellers in China. Merchants will have the opportunity to test new products through small-batch production, similar to Shein’s on-demand manufacturing model, which produces limited quantities initially and scales up production based on demand.
Amazon spokesperson Maria Boschetti commented, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.” However, Boschetti did not provide further details on the launch date, as reported by The Information. It is only noted that product acceptance will begin this fall.
China-based merchants have long been a significant part of Amazon’s marketplace. Recently, Amazon has intensified its efforts to engage these sellers due to increasing competition. In December, Amazon opened an “innovation center” in Shenzhen, a major tech and manufacturing hub. Additionally, the company reduced fees for merchants selling clothing priced below $20.
In 2023, Amazon reported a more than 20% year-over-year increase in the number of items sold by Chinese sellers on its platform. Furthermore, the number of Chinese merchants with sales exceeding $10 million rose by 30%.
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