June 26th, 2024

Amazon plans to launch discount store in bid to fend off Temu and Shein

Amazon plans to launch a discount store section featuring low-priced fashion and lifestyle items from Chinese sellers to compete with emerging e-commerce sites. The new storefront will offer unbranded items under $20, aiming for quick delivery within 9-11 days. This initiative is part of Amazon's strategy to attract more Chinese sellers and increase sales. The exact launch date is not specified, but products are expected to be accepted this fall.

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Amazon plans to launch discount store in bid to fend off Temu and Shein

Amazon is planning to launch a new discount store section on its platform, focusing on low-priced fashion and lifestyle items from Chinese sellers. The move is seen as a strategic response to compete with emerging e-commerce sites like Temu and Shein, which have gained popularity in the U.S. The new storefront will offer unbranded items, many priced under $20, and will aim to deliver products directly from China to U.S. consumers within nine to 11 days. This initiative is part of Amazon's efforts to attract more Chinese sellers to its marketplace, following a trend of increased sales from Chinese merchants on the platform. The company's presentation to sellers highlighted cost savings and the ability to test new items through small-batch production. While the exact launch date of the discount store is not specified, Amazon is expected to start accepting products this fall.

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Link Icon 4 comments
By @Veliladon - 4 months
One of the big problems with trying to compete is that Temu and SHEIN both have their last mile, which is the most expensive of them, subsidized a huge amount by the USPS because of international postal treaties. Amazon think they can outdo it with their own network? Not a chance.

People buy from Temu and SHEIN knowing it's basically a lottery ticket on the stuff showing up and disputing the CC transaction if it doesn't. What's the old saying? Don't wrestle with a pig because the pig just likes it and you end up covered in pig shit. Same applies here.

By @jepler - 4 months
because the key problem with Amazon is that the consistently high-quality items are priced accordingly.
By @foolfoolz - 4 months
this is a multi level problem

trust is gone:

- trust in a brand

- trust in reviews

- trust in a store

this isn’t that bad. many things we buy don’t need high levels of trust. some items are cheap or low value enough that no one cares. if it doesn’t last long or is low quality

brand trust is gone for cheap products. why am i supposed to believe one brand is better than another when i can clearly see they are all the same with different names. these brands are sometimes random letters

review trust has been gone a long time. reviews mean nothing and i’m surprised when people use them

store trust is still extremely important. it’s very high on amazon because of their support and their returns. if you could buy something on amazon for the price you can get it on a discount store you would

this only really applies to cheap stuff. but i buy a lot of cheap stuff on aliexpress. i’d be happy to be on amazon instead. i wanted to buy a bike on amazon and saw many of them from no name brands for $200+. that’s when i stopped and would rather buy from a bike store directly

By @JojoFatsani - 4 months
Could be a good way to get all the HEREBUYEVERGOOD junk brands off the main store.