Amazon plans a new discount store with items shipped directly from China, according to reports.
Amazon Plans to Launch New Store Directly from China to Compete with Chinese Competitors
Amazon is planning to launch a new store that will allow US-based buyers to purchase low-cost, unbranded items delivered directly from China, according to new reports from CNBC and The Verge. The plan is widely seen as an attempt to compete with China-based competitors such as Temu and Shein.
The leak of Amazon’s plan for the store came after the online retail giant hosted an invitation-only call with sellers in China, as reported by CNBC. According to a presentation shown during the call, products like arm weights and phone cases were featured.
As CNBC explains, the plan is for Amazon to help ship products directly from China to customers in the US, a departure from the previous model that required sellers to first ship to Amazon fulfillment centers in the US before packages reached American homes.
A spokesperson for Amazon did not provide further details on the plan and simply stated, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
Amazon is clearly trying to counter the relatively new online retail competition from China such as Temu and Shein, which have gained traction in recent years by offering very cheap prices and direct shipping. This influx of money from Chinese retailers has also helped other major tech platforms gain cash. For example, Temu’s parent company, PPD, spent $2 billion on ads with Meta last year, according to the latest reports.
While the timing for the launch of Amazon’s new store has not been announced, the presentation given to sellers in China today suggested it could happen as soon as fall.
