Jun 27, 2024 at 9:35 PM Amazon to launch budget storefront targeting giants Temu and Shein this fall
Amazon is preparing to introduce a budget storefront this fall, focusing on affordable apparel, home goods, and other low-cost items. The launch event, held with sellers in China, highlights Amazon's strategy to compete with fast-fashion giants Temu, Shein or Wish. The new storefront will feature products mostly priced under $20 with delivery times from China to the US projected to be between nine to 11 days.
The company plans to use small-batch production to test new products before scaling up, aiming to enhance selection, lower prices, and improve convenience. Although a company spokesperson did not confirm the fall launch, the initiative underscores Amazon's effort to attract budget-conscious consumers and streamline supply chain efficiencies through direct relationships with Chinese sellers.
This move marks a significant step in Amazon's strategy to strengthen its market position against fast-fashion competitors by focusing on low-cost items and improving delivery times, offering a more attractive alternative for consumers looking for affordable shopping solutions.
Comments
Will take a look at the video!
I'm not sure how this will work, unless it is not profitable to Amazon. I don't think China will go for it. The Chinese government wants to undercut U.S. businesses. The Chinese government wanted to destroy for example, the Etsy market. They did this by subsidizing Chinese export shipping costs and taking advantage of very bad trilateral international shipping agreements.
That's why it costs less to ship a small package from China to your house in the U.S.A than it costs to send a small package from your house to your next door neighbor with U.S.P.S.
Amazon is already full of Chinesium products that are sold for over double the price as Temu or Aliexpress, and 3-4x the price as Taobao. And many of those items ship from China (non-Prime ones). Why wouldn't Amazon have altered prices before to compete? For anything cheap I already buy on Temu or Aliexpress, as any product weighing under a pound or so that isn't large will almost always be at least 50% of the price as on Amazon.