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Amazon Takes On Temu and Shein With China-Direct Discount Section

Amazon, Shein, Temu, online shopping, retail, eCommerce

Amazon will reportedly add a section to its shopping site that aims to compete with Temu and Shein, featuring items that are cheap and are shipped from China to overseas consumers.

The new marketplace will offer apparel, home goods and consumer goods, along with delivery in nine to 11 days, Reuters reported Wednesday (June 26), citing a paywalled article by The Information.

Amazon plans to sign up sellers during the summer and start accepting inventory in the fall, according to the report.

It is not clear if the items offered on this marketplace will be shipped in a way that would exempt them from U.S. customs duties, as both Temu and Shein do, per the report.

When asked about this report, an Amazon spokesperson told Reuters: “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience.”

Temu has attracted a significant number of baby boomers and Generation X shoppers in the United States by offering a diverse product mix and attractive discounts.

The Chinese eCommerce app entered the U.S. market in late 2022 and rapidly became one of the most downloaded apps. While it has had a reputation as a platform for younger consumers, it saw older consumers frequenting the app more often and spending more than their younger counterparts during its first year in the U.S.

Temu has been viewed as offering consumers an alternative to Amazon, because it offers significant discounts on a wide range of products in exchange for longer delivery times.

It was reported on June 11 that Temu is drawing more return shoppers than eBay. Thirty-four percent of shoppers purchase something from the Chinese retailer once a month, compared to 29% for eBay.

Amazon remains head and shoulders above both of these companies, with more than three-quarters of consumers saying they patronize it at least monthly.

The other company said to be targeted by Amazon’s planned marketplace, Shein, is also known for its low-cost offerings.

Shein launched its online fashion venture in China in 2012 and has become a heavyweight in the online arena by offering clothing and various items at remarkably affordable prices, all while staying attuned to the latest fashion trends and harnessing the power of vigorous marketing.