Amazon launches new low-cost store to compete with Shein and Temu

Amazon is preparing a new move to take on its competitors in the low-cost products market. The U.S. e-commerce company has announced the launch of a section specializing in low-cost products, with prices not exceeding $20. This new space on Amazon’s website will be geared toward offering items directly imported from China, CNBC reports.

New Amazon Section Details

The new store, which is expected to be available in fall 2024, will offer a range of products including fashion, home and lifestyle items, all without specific brands. Items will be shipped directly from China, reducing lead times and logistics costs. Sellers will have nine to 11 days to deliver products to buyers, which is a significant change from the current model where Chinese sellers must use Amazon’s Fulfillment by Amazon logistics services.

In addition, vendors will be able to select their products and set prices, as well as produce small batches to test demand for new products. This strategy is reminiscent of Shein’s on-demand manufacturing model, which also produces on a small scale to adapt to market trends.

Characteristics and Expectations

Amazon’s low-cost store will offer a wide variety of items, such as gua sha facial massagers, arm weights and cell phone cases, all priced under $20. This variety and low cost are designed to appeal to consumers looking for economical options in a competitive market.

Maria Boschetti, Amazon spokesperson, commented, “We are always looking for new ways to collaborate with our seller partners to offer our customers greater selection, better prices and greater convenience.” However, Boschetti did not provide additional details on whether shipments will be subject to customs tariffs or on the possibility of the store launching globally.

Pending More Information

Several important details about the new Amazon store have not yet been clarified, such as its possible availability in other countries, including Spain. For the time being, users will have to wait to find out whether this new Amazon offering will reach their local markets and how it will be implemented in terms of logistics and customs regulation.