Amazon is launching a new online store featuring low-cost items shipped directly from China. This move is in response to competition from retailers like Shein and Temu, who offer cheaper prices and are gaining traction with U.S. consumers.
Key Details:
- Focus: Unbranded clothing and household items priced under $20, weighing less than a pound.
- Delivery: Orders will arrive within 11 days, shipping tariff-free under the de minimis threshold.
- Merchant Involvement: Amazon invited select Chinese sellers to start signing up this summer, with inventory accepted in the fall. Sellers can set their product selection and pricing, producing in small batches to test demand.
Considerations:
- Impact on Third-Party Sellers: How will existing FBA sellers, already strained by Amazon’s fees, cope with this new competition from Chinese sellers?
- Customer Experience: Will offering cheaper, longer-delivery options affect customer loyalty and satisfaction?
- Future of Tariff Rules: Could changes to the de minimis rule impact the viability of this new marketplace?
Amazon hasn’t confirmed or denied these plans but told Reuters, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.“
For more details on this topic, also check this post from the MarketplacePulse.
