🛍️ Amazon's New Budget Store
Amazon plans to launch a new budget storefront to compete with Temu and Shein. The announcement was made at a closed-door event for Chinese sellers. The store will feature low-cost fashion, lifestyle items, and home goods. Many items will be priced under $20. This is Amazon's most aggressive move yet to capture market share from its emerging competitors.
🇨🇳 Targeting Chinese Sellers
Amazon is focusing on Chinese sellers for this new store. The company will allow these sellers to ship products directly to U.S. consumers. This approach aims to cut costs and reduce shipping times to 9-11 days. In the past, Chinese sellers used Amazon's Fulfillment by Amazon services. Now, they can test new products with small-batch production. This model is similar to Shein's on-demand manufacturing.
🛒 Competing with Temu and Shein
Temu and Shein have grown popular in the U.S. with their low prices on a wide range of products. Amazon's new storefront is a strategic move to attract more American shoppers. The company recently opened an innovation center in Shenzhen, China, and cut fees for merchants selling low-cost clothing. Amazon's spokesperson, Maria Boschetti, stated, "We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience."
📈 Growth and Future Plans
In 2023, the number of items sold by Chinese sellers on Amazon grew by over 20% year-over-year. The number of Chinese merchants with sales exceeding $10M increased by 30%. This fall, Amazon will start accepting products for the new storefront. This initiative underscores Amazon's commitment to expanding its marketplace and competing with fast-growing e-commerce platforms like Temu and Shein.
Will Amazon's new budget store beat Temu and Shein?
