Amazon is set to launch a new discount marketplace with budget-friendly items shipped directly from China, Reuters reports. This move comes as the ecommerce giant intensifies its competition with fast-growing discount platforms such as Temu and Shein.
The new section on Amazon’s platform will spotlight unbranded fashion, home goods and everyday essentials.
Products will be delivered to international customers within a timeframe of nine to 11 days, according to internal documents obtained by Reuters.
In a recent confidential meeting with Chinese sellers, Amazon allegedly revealed plans to start enlisting merchants this summer, with inventory intake beginning in the autumn.
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Amazon’s new bargain section looks set to offer considerable flexibility to sellers, with merchants being able to choose their product offerings and set their pricing strategies. Additionally, they will be able to produce goods in small quantities to gauge market demand for new items before scaling up production.
“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.
It’s not clear whether Amazon will make use of the US trade provision that allows individual packages valued under $800 (£748) to bypass customs duties.
Competitors such as Shein and Temu, which are rapidly expanding their market presence internationally, often rely on this clearance process for their direct-to-consumer shipments. Temu recently reported a doubling of sales and Shein is understood to have confidentially filed for a London listing earlier this month.
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