Amazon Found Its Own Way of Dealing With Cheap Chinese Goods

Amazon recently negotiated terms with Chinese sellers. At the meeting, it unveiled plans to create a new store selling cheap clothing, home goods and other items. The aim is to compete directly with popular e-commerce platforms Temu and Shein.

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Amazon Found Its Own Way of Dealing With Cheap Chinese Goods — Source: Depositphotos

Chinese sellers will be able to ship goods directly to American consumers. Amazon promises delivery within nine to eleven days. Products are expected to start arriving this autumn, although the exact launch date has yet to be officially announced.

“The store would compete directly with Temu and Shein, two new Chinese-linked e-commerce sites that have gained popularity in the US,” reports CNBC.

Amazon’s strategy includes showcasing unbranded items priced under $20, such as facial massagers or phone cases. Like Shein, the initiative is designed to save sellers money by producing items in small batches. Larger batches will be produced when demand for certain items is higher.

Amazon is trying to attract more Chinese sellers. This is evidenced by the recent opening of an innovation centre in Shenzhen and the lowering of fees for cheap clothing. The number of items sold by Chinese sellers on Amazon will grow by more than 20% by 2023, with a significant increase in the number of high-income sellers.

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