With fierce competition from Chinese e-commerce platforms such as Temu and Shein, Amazon is launching a dedicated section exclusively for ultra-low-priced products under $20. This strategy involves importing products directly from China for sale in the United States.
According to CNBC on the 27th, Amazon recently revealed a plan to sell ultra-low-priced products targeting Chinese sellers during a private meeting. The strategy involves improving the website’s front page to focus primarily on products under $20 without brand names. The goal is to ship ordered products from China to the United States within 9 to 11 days.
The specific launch date for Amazon’s new service has not been disclosed. However, it is reported that product registration will begin this fall. Amazon 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.” Following the news, Amazon’s stock price rose by 2.19% that day. This continues the upward trend after the market capitalization exceeded $2 trillion, with a 3.9% increase the previous day.
Amazon’s new user experience (UX) is interpreted as a move targeting Temu and Shein, which are gaining popularity in the United States. Chinese e-commerce companies are expanding their presence by directly exporting ultra-low-priced products from China to the United States. Although shipping may be slower than ordering from Amazon, the competitive pricing compensates for the delay. According to Omnisend, 34% of American consumers purchase products from Temu at least once a month.
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