Amazon May Open A Low-Cost Store With Shipments From China To Take On Temu

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Amazon appears to be laying the groundwork to launch new, low-cost offerings in its marketplace to better compete with the likes of Temu and Shein, according to reports on The Information and CNBC. This new program will allow Chinese sellers to ship their wares directly to buyers in the United States, with a focus on unbranded lifestyle and fashion goods.

The upcoming change was announced during a conference for a select group of sellers based in China. CNBC was able to get ahold of the presentation shown to these sellers, saying that “a mock-up of the storefront showed a gua sha facial massaging tool, arm weights and phone cases, among other items for sale.” The majority of the items seen were $20 or less.

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A big part of getting Chinese sellers onboard is letting them ship their items directly to consumers, without the need to use warehouses operated by Amazon. Of course, this will increase shipping times, with the company aiming for a delivery to be completed between 9 and 11 days from the original purchase. Amazon will need to be very clear about this on product pages, or risk drawing the ire of customers accustomed to quick shipping through its Prime service.

Moreover, Amazon is looking to offer more cost savings to sellers by allowing items manufactured in small batches, also known as on-demand manufacturing, to be sold. It’s safer for sellers to try new items with this method, ramping up production if an item proves to be popular with buyers. Shein, a competitor in this space, already lets sellers use this kind of manufacturing.

It will be interesting to see how well received this move will be by Amazon shoppers, especially with the potential increase in shipping times.