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.

eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Sign up to receive my latest articles in your inbox

I agree that my data is used according to the privacy policy

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.