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Amazon may take on Temu and Shein with a new Chinese discount store

Published Jun 27th, 2024 8:53AM EDT
Amazon package at front door step on brick steps
Image: Kits Pix/Adobe

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If you’ve been secretly wishing for Amazon to feature incredibly cheap products like the ones you can order on AliExpress, Temu, and Shein, you might be in luck. Amazon is considering opening a new digital storefront featuring discount products from Chinese manufacturers to take on some of these popular e-commerce apps from China.

Amazon has reportedly met with some sellers in China, pitching the new store idea and its plans for opening the new discount store. But Amazon isn’t ready to confirm anything or announce the new storefront. Reports say the store might open this fall once preparations are made.

Two separate reports have detailed Amazon’s purported plans to compete against Temu and Shein in the near future. According to The Information and CNBC, Amazon wants to have a new section on its website that will feature items made in and shipped from China.

Amazon wants to feature low-priced fashion and lifestyle products that will compete directly with the things people buy on Temu and Shein. The two apps have become increasingly popular in the US, attracting buyers with their dirt-cheap prices on a variety of unbranded products.

Amazon wants to offer customers the same convenience, with the new section to offer products that will be priced under $20. That’s according to a presentation Amazon gave select Chinese sellers during an invite-only event on Wednesday.

But, just like products you’d buy from Temu and Shein, you’d have to wait longer for Amazon to deliver your order. Amazon plans to ship orders directly from China to the US, and orders will likely take between 9 and 11 days to fulfill. It’s not as good as Amazon Prime shipping, but it’s still a great compromise, considering the cheap price points for most products. The added benefit is that Amazon handles and ships your orders.

As for the sellers that Amazon is trying to seduce, the US retailer apparently pitched them another idea inspired by its Chinese rivals. The merchants will be able to test new items through a small-batch production run. If they’re popular with buyers, the vendor can increase production. Per CNBC, Shein uses a similar model. This reduces the risk of building up inventory.

The leaked presentation reveals that Amazon plans to start accepting products at this new storefront as soon as this fall. However, it’s unclear when the new storefront will actually launch.

Amazon has not confirmed the new storefront, however. A spokesperson told CNBC that Amazon is “always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” without offering any specifics.

Chris Smith Senior Writer

Chris Smith has been covering consumer electronics ever since the iPhone revolutionized the industry in 2008. When he’s not writing about the most recent tech news for BGR, he brings his entertainment expertise to Marvel’s Cinematic Universe and other blockbuster franchises.

Outside of work, you’ll catch him streaming almost every new movie and TV show release as soon as it's available.