Amazon Plans Discount Section Launch for Chinese Shipments

On Wednesday, reports stated that Amazon.com is set to launch a section on its site featuring cheap items shipped directly from Chinese warehouses.

The rise of bargain sites like Temu and Shein resulted in the company’s new marketplace, its most aggressive response. It will offer unbranded fashion, daily necessities, and home goods, delivered to customers in nine to eleven days.

Journalists also mentioned that the e-commerce giant told Chinese sellers that it would begin listing merchants and accepting inventory in the fall.

They added that sellers in the bargain can establish their product selection and pricing. In addition, they can produce in small volumes for a demand trial for any new products they plan to release.

According to an Amazon spokesperson, they are working on providing customers with wider selections and lower prices.

However, sources said it is unclear if the shipments would be made through a US trade provision. It is yet to be disclosed if it exempts single packages worth $800.00 from customs duties.

On the other hand, Shein is attempting to expand its market share before going public. Moreover, Temu depends on the monitored clearance process, which is available for direct-to-customer deliveries costing $800 or lower.

Temu and Shein to Compete with Amazon

Amazon plans to roll out an online storefront for cheaply-priced items to compete with Temu and Shein.

Currently, the e-commerce giant ranks first on the Transport Topics Top 100 list of the most significant North American logistics companies. Also, it’s first on the top global freight companies list.

Meanwhile, the company and other US retailers are challenged by the quick rise of a unit of PP Holdings, Temu, and online clothing store Shein. Sources claim that both companies lured consumers with deep discounts and effective advertising.

This year, Amazon will waive merchant fees for selling low-priced clothing to compete with Shein’s bargain basement prices.