Amazon launches discounted Direct-from-China section to compete with Temu and Shein

Amazon plans to counter growing competition from Temu and Shein by launching a new section on its app that offers discounted items shipped directly from China.

This initiative, detailed in a presentation to top Chinese sellers, aims to deliver low-cost goods to American customers within nine to eleven days.

By incorporating this section on its homepage, Amazon targets US shoppers who are willing to wait longer for cheaper products.

This move mirrors Temu and Shein’s business models, utilising Chinese warehouses and exploiting the de minimis rule to avoid import tariffs.

Amazon will start recruiting sellers in the summer and roll out the service in the autumn, focusing on items priced under $20, weighing less than a pound, and excluding edibles or liquids.

This strategy could challenge Shein’s plans for an initial public offering in London.

During yesterday’s trading session, Amazon’s market capitalization surpassed $2 trillion and by doing so Amazon has joined the other four fabulous tech giants: Nvidia, Apple, Alphabet, and Microsoft.

Amazon’s fantastic milestone of $2 trillion market cap has been driven by strong growth in Amazon Web Services (AWS) and strategic investments in Artificial Intelligence startups and custom chip development.

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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.