December 27, 2024

On April 16, 2024, an Amazon contract worker stacked packages on a luggage cart outside an apartment building in New York.

Angus Mordants | Bloomberg | Getty Images

Amazon According to CNBC, the company plans to launch a new section on its website dedicated to selling low-priced fashion and lifestyle goods, allowing Chinese sellers to ship directly to U.S. consumers.

The storefront, announced Wednesday at an invitation-only conference for Chinese sellers, will mark Amazon’s most aggressive attempt to fend off growing competition from e-commerce upstarts Temu and Shein. , both companies have ties to China, the world’s second-largest economy.

In recent years, Temu and Shein have expanded their presence in the United States, attracting more and more American consumers with rock-bottom prices on clothing, electronics, home furnishings and other products.

Amazon’s storefront will feature a range of unbranded items, many priced under $20, according to a presentation to Amazon sellers seen by CNBC. A mockup of the storefront displays gua sha facial massage tools, arm weights and phone cases, among other items for sale.

Amazon will ship the products directly from China to the United States, with the goal of delivering them to shoppers within nine to 11 days, according to the briefing. In the past, Amazon sellers in China relied on the company’s Amazon fulfillment service, known as Fulfillment by Amazon, to send goods to U.S. warehouses and then on to customers.

The company said the arrangement could save costs for Chinese Amazon sellers and said merchants would be able to test new products through small batch production. Shein uses a similar model called on-demand manufacturing, producing a limited number of items and making more as demand increases.

“We’re always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience,” Amazon spokesperson Maria Boschetti said in a statement to CNBC.

Boschetti declined to comment further on the company’s plans, which were first reported by information. It’s unclear when Amazon plans to launch the storefront, but the briefing notes it will begin accepting products this fall.

Chinese merchants have held a sizable share of Amazon’s marketplace for years, but the company is renewing its efforts to attract Chinese sellers as it faces increasing competition. In December last year, Amazon announced the establishment of a new “innovation center” in Shenzhen, a popular technology and manufacturing center. Cut expenses It charges merchants a fee for selling clothing priced under $20.

Amazon said that in 2023, the number of products sold by Chinese sellers on its website will increase by more than 20% annually, and the number of Chinese merchants with sales exceeding US$10 million will increase by 30%.

Don’t miss these insights from CNBC PRO

Amazon replaces plastic packaging: Here's what you need to know

About The Author

Leave a Reply

Your email address will not be published. Required fields are marked *