AMAZON TO LAUNCH DISCOUNT SECTION WITH DIRECT SHIPPING FROM CHINA TO COMPETE WITH RIVAL TEMU AND SHEIN

Thu 27 June 2024:

Amazon.com is set to introduce a new section on its shopping site featuring inexpensive items shipped directly to overseas consumers from Chinese warehouses, according to a report by tech news site The Information, which cited slides shown to Chinese sellers.

This new marketplace, Amazon’s boldest move yet to compete with discount sites like Temu and Shein, will offer unbranded fashion, home goods, and daily necessities, with delivery times ranging from 9 to 11 days, the report published on Wednesday stated.

In a recent closed-door meeting, Amazon informed Chinese sellers that it would begin signing up merchants this summer and start accepting inventory in the fall, The Information reported.

Sellers on the new platform can choose their product selection and pricing and produce in small batches to test market demand for new products, the report added.

“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” an Amazon spokesperson told Reuters when asked for comment on the report.

It remains unclear if these shipments will utilize a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties, The Information noted.

Both Shein, which is seeking to expand its market share before going public, and PDD Group-owned e-retailer Temu, rely on this expedited clearance process for direct-to-consumer shipments valued at $800 or less.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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