On Tuesday, Amazon rose while shutting out its rival, Temu, from its price searching algorithm for its inability to reach its standards.
Its stock price went up by 0.07% to $126.66 per share on June 13. Likewise, it is expected to increase by 0.10% to $126.79 apiece in the upcoming session.
The company said the recently launched e-commerce marketplace did not meet its strict qualification requirements. As a result, other low-priced merchandise on Temu can knock out prices from Amazon marketplace sellers.
Moreover, the multinational company is cautious about price wars with unreputable competitors. It mentioned that its qualification standards ensure it would not match prices from questionable marketplaces.
Temu’s merchandise is mostly Chinese-based. Mostly, Temu’s merchandise is from China. In hopes of competing with the famous e-commerce, it kept prices low.
The decision of Amazon to disregard its rival’s prices highlights its problem in maintaining competitive prices.
During the previous years, it dealt with its counterfeit dilemma. It claimed they improved in reporting fakes to law enforcement and attempted to fight mock-ups.
In addition, the company stated that it works hard to keep giving low prices to customers. Nonetheless, if sellers’ prices are compared to Temu, they might be forced to lower costs.
AMD AI Chips to be Used by Amazon
Amazon is thinking about using artificial intelligence (AI) chips from Advanced Micro Devices.
In an AMD event, they made the remarks while showcasing their strategy for the AI market. Nvidia currently dominates that industry.
Despite the technical specifications for their chip that could beat Nvidia, its shares slid for not disclosing a flagship customer.
According to Dave Brown, vice president of elastic compute cloud at Amazon, they have not publicly committed to using them. However, its web services are considering them.
AMD’s chief executive bets that many people would want options and abilities to customize as they wish in data centers. Their technology can provide these.