Amazon to reportedly launch discount section with direct shipping from China

E-commerce giant Amazon is set to introduce a new marketplace featuring low-cost items shipped directly from Chinese warehouses to overseas consumers, according to a report by The Information.

This move is seen as Amazon's most aggressive response yet to the rising popularity of bargain sites such as Temu and Shein.

The new section will offer unbranded fashion, home goods, and daily necessities, with delivery times ranging from 9 to 11 days. Amazon reportedly shared details of the initiative during a closed-door meeting with Chinese sellers, stating that merchant sign-ups would begin this summer, with inventory acceptance commencing in the autumn.

Sellers participating in this new marketplace will have the flexibility to determine their product selection and pricing. They will also have the opportunity to produce items in small batches, allowing them to test demand for new products before scaling up production.

An Amazon spokesperson, when approached for comment by the outlet, stated, "We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience."

It remains unclear whether these shipments will utilise the US trade provision that exempts individual packages valued at less than $800 from customs duties. This provision is currently leveraged by competitors Shein and Temu for their direct-to-consumer shipments.

The move comes as Shein, a major player in the fast-fashion e-commerce space, seeks to expand its market share ahead of a potential public listing. Meanwhile, PDD Group-owned Temu has been rapidly gaining traction in the bargain e-commerce sector.

This strategic initiative by Amazon underscores the intensifying competition in the global e-commerce landscape, particularly in the discount goods segment. As consumer demand for affordable products continues to grow, major players are adapting their business models to capture a larger share of this burgeoning market.

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