Amazon is preparing a low-cost store similar to Temu and SHEIN, with deliveries directly from Chinese vendors without going through Amazon warehouses

It has been reported by multiple media outlets that Amazon is preparing a low-cost store to compete with Temu and SHEIN. According to the report, the low-cost store will adopt a method of 'delivering products directly to users from Chinese sellers without going through Amazon warehouses.'

Amazon To Launch Temu-Like Discount Section With Direct Shipping From China — The Information
https://www.theinformation.com/articles/amazon-to-launch-temu-like-discount-section-with-direct-shipping-from-china

Amazon plans discount store in bid to fend off Temu and Shein
https://www.cnbc.com/2024/06/26/amazon-plans-discount-store-in-bid-to-fend-off-temu-and-shein.html

According to a CNBC report, Amazon invited Chinese sellers to a briefing on its low-cost store, and slides obtained by CNBC showed a store screen with products priced under $20, such as dumbbells and smartphone cases.

When Chinese sellers sell products to American Amazon users, they have to ship a large number of products to Amazon warehouses in the US. On the other hand, low-cost stores ship products directly from China to users. This allows sellers to enjoy benefits such as reducing shipping costs and being able to test a small number of products. Amazon has set a target delivery time of 9 to 11 days.

The document also stated that 'product registrations will begin in the fall of 2024.' However, it is unclear when the low-price store will be released.

In Japan, we often see advertisements for Temu and SHEIN, but the situation is the same in the United States, where Temu had 47 million monthly active users and SHEIN had 29 million monthly active users in April 2024, exceeding Amazon's 66 million. Amazon is likely anxious about the rapid growth of Temu and SHEIN and has decided to establish a low-price store.

How did Chinese shopping sites 'Shein' and 'Temu' catch up with Amazon? - GIGAZINE

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