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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Amazon, facing fierce competition from Chinese e-commerce platforms Temu and Shein, is planning to introduce a dedicated section for ultra-low-price products priced under $20. The strategy involves directly importing products from China to the US, similar to its competitors.
On the 27th (local time), CNBC reported that Amazon disclosed its plan to sell ultra-low-price products during a closed conference with Chinese sellers. The plan includes revamping the website's main page to focus on products priced under $20 without brand names. The goal is to deliver ordered products from China to the US within 9 to 11 days.
The specific launch date of Amazon's new service is yet to be announced, but product listings are expected to begin this fall. Amazon stated, "We are always working with our partners to find ways to offer more choices, lower prices, and greater convenience." Following this news, Amazon's stock price rose by 2.19%. The previous day, the stock had already increased by 3.9%, pushing its market capitalization past $2 trillion.
Amazon's new user experience (UX) is seen as a measure targeting Temu and Shein, which have been expanding their presence in the US by directly exporting ultra-low-price products from China. Although delivery from these platforms is slower compared to Amazon, their strong price competitiveness compensates for the slower shipping times. According to UK marketing company Omnisend, 34% of US consumers purchase items from Temu at least once a month.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
