🔍 Amazon’s Competitive Watchdog
Amazon is closely monitoring product prices on Temu, according to Chinese merchants. Sellers have reported being asked by Amazon’s local office to avoid pricing products cheaper on Temu. This comes as Amazon fights back against Temu's aggressive pricing strategies. Temu, owned by PDD Holdings, offers ultra-low prices by shipping directly from China, making it a rising competitor. Amazon’s Featured Offer program, critical for boosting sales, now tracks these pricing discrepancies.
⚙️ How the Featured Offer Works
The Featured Offer, prominently displayed on Amazon product pages, drives sales. It’s tied to competitive pricing, requiring sellers to match or beat prices from major retailers, including Temu. Sellers say that failing to comply means losing access to this prime real estate. One furniture seller revealed that Amazon removed their Featured Offer status when their Temu price was lower, hitting their sales. These policies underline Amazon’s attempt to control price wars with Temu.
🛒 Temu’s Low-Price Advantage
Temu has gained traction by offering products directly from Chinese manufacturers at rock-bottom prices. The platform has disrupted traditional retail channels, especially in budget-conscious markets. Sellers who split their listings across Amazon and Temu face tough choices. On Temu, they enjoy lower operational costs, but on Amazon, they risk losing critical visibility if prices don’t align. This pricing conflict highlights the challenge of maintaining cross-platform competitiveness.
🌐 The Global E-Commerce Battle
The clash between Amazon and Temu reflects the intensifying global e-commerce landscape. With Temu expanding into the US market, Amazon is leveraging its scale and influence to retain dominance. Experts note that the Featured Offer policy is a strategic move to protect Amazon’s market share. However, this puts pressure on sellers navigating both platforms. The outcome of this pricing tug-of-war could reshape consumer choices and the dynamics of e-commerce in 2025.
Can Amazon and Temu coexist without squeezing sellers?
