Amazon to launch Temu-style discount section

02 Jul 2024 --- Amazon is rumored to soon launch a new segment on its website showcasing cheap items that are globally shipped directly from Chinese warehouses.

The shop’s concept is compared to bargain platforms Temu and Shein and will offer daily necessities among other frequently purchased items. Products will be delivered between nine to 11 days to customers, according to Amazon slides shown to Chinese sellers featured on The Information.

Amazon recently held a closed-door meeting where it reportedly informed Chinese merchants that it would begin registering sellers this summer and start accepting inventory in the fall.

The new bargain platform will allow sellers to identify their product selection and pricing, and produce in small batches to test the demand for any new products in the pipeline.

“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” an Amazon spokesperson told Reuters.

Amazon currently hosts a Premium Beauty segment on its site, which launched with Clinique and its Skin Analysis tool.

Customs exemptions
The Information reports that it is unclear whether these shipments will be made using a US trade provision that exempts individual direct-to-consumer packages worth less than US$800 from US customs duties.

Temu and Shein, which has made moves to grow its market share before going public, rely on this same expedited clearance process when selling to their customers.

Shein reportedly filed confidential papers with UK regulatory bodies ahead of a potential IPO on the London Stock Exchange. The fast fashion giant is rumored to be preparing to list in the second half of the year.

In other e-commerce headlines, Target Plus will expand thanks to a partnership with the global commerce platform Shopify. The partnership involves select merchants offering “a hand-selected assortment of new and on-trend products.”

By Benjamin Ferrer