In its latest move to combat the growth of discount Chinese shopping apps Temu and Shein, Amazon is reportedly planning to add its own China-direct section, according to The Information.
Citing slides shown to Chinese sellers in a recent “closed-door meeting,” The Information reports that Amazon plans to launch a special section on its site featuring low-price unbranded items that ship directly from Chinese warehouses. And while Shein and Temu have been working to speed up their fulfillment times in order to compete with Amazon, Amazon is apparently willing to cede its one major advantage — speedy delivery — in order to bring U.S. consumers the cheap Chinese goods they clearly want: shipments from the new China-direct Amazon section would reportedly take nine to 11 days to reach customers.
Amazon told Chinese sellers that it would start signing up merchants this summer and plans to begin accepting inventory in the fall. Sellers will reportedly be able to determine their own product selection and pricing and will be allowed to do small-batch production to test demand as Shein does.
“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience,” said Amazon in comments shared with The Information.
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Shein and Temu have been edging in on Amazon’s turf for some time now, with both apps overtaking Amazon and Walmart in U.S. rankings. Shein even announced earlier this year that it was opening a U.S. office and fulfillment hub in Amazon’s backyard of Seattle. In its bid to remain competitive, Amazon already has hosted a summit for sellers in Shenzhen, China and dramatically reduced seller fees for low-cost apparel sold on its site.
