Amazon Plans New Discount Store With Items Shipped Directly From China, Reports Say

Source: Gizmodo, Matt Novak
Photo: File photo of Amazon’s Robotic Fulfillment Center on December 19, 2023 in Sutton Coldfield, England. (Nathan Stirk, Getty Images)

Amazon plans to launch a new store that will allow U.S.-based shoppers to buy low-cost, unbranded items delivered directly from China, according to new reports from CNBC and The Information. The plan is widely seen as an attempt to compete with China-based competitors like Temu and Shein.

Amazon’s plan for the store leaked on Wednesday after the online retail giant hosted an invite-only call with sellers in China, according to CNBC. A presentation reportedly featured products like arm weights and phone cases.

As CNBC explains, the plan is for Amazon to help ship products directly from China to customers in the U.S., a shift from the previous model that forced sellers to ship first to Amazon fulfillment centers in the U.S. before the packages made their way to American homes.

An Amazon spokesperson didn’t provide any futher details on the plan and would only say, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”

Amazon is clearly trying to fight back against relatively new competition from online retailers in China like Temu and Shein, which have gained steam in recent years by offering dirt-cheap prices and shipping direct. And that influx of money from Chinese retailers also helped other Big Tech platforms rake in cash. As just one example, Temu’s parent company PPD spent $2 billion on ads with Meta last year, according to the Wall Street Journal last month.

While the timing for the launch of Amazon’s new storefront hasn’t been announced, the presentation given to sellers in China today reportedly suggested it could happen as soon as the fall.

https://gizmodo.com/amazon-temu-shein-shopping-china-direct-shipping