“Sofas priced at $20: Amazon introduces its latest discount retail outlet”
According to a report, Amazon has started informing its merchants about price caps for certain products. The list includes 700 items, with caps ranging from $8 for jewelry to $20 for sofas. This pricing cap strategy is unprecedented for Amazon in its primary market, with products being shipped from a fulfillment center in Guangdong, China.
### Shipping Costs and Times
Shipping times are estimated at nine to 11 days, with sellers charged between $1.77 and $2.05 to ship items weighing between four and eight ounces from the center. These rates are lower than those faced by sellers shipping from local warehouses under the Fulfillment by Amazon program.
One of the concerns with stores like Temu is the exploitative labor model they are built on. Reports indicate that Temu ships products made by Uighur Muslims under forced labor conditions to the U.S. annually. The need for companies in the U.S. to ensure their supply chains do not contribute to the Uighur genocide is emphasized.
The competition from platforms like Temu and Shein has pushed Amazon to take action. Last year, Amazon launched a budget store to compete in the market for low-cost products made in China. This move reflects the competitive pressure in e-commerce and Amazon’s need to innovate to remain relevant.
