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Amazon launches low-cost section to rival Temu and Shein.

Amazon

Amazon is introducing a new section on its site dedicated to low-cost fashion and lifestyle items, allowing Chinese sellers to ship directly to American consumers. Announced at an exclusive conference for Chinese sellers, this initiative aims to counter the rise of Temu and Shein, which are attracting more and more American customers with their very low prices.

The new store will offer a range of unbranded items for under $20, with delivery expected in nine to eleven days. Amazon presents this as a cost-saving measure for sellers, allowing them to test new items in small quantities. This model is similar to that used by Shein, which manufactures on demand.

The new section is expected to be operational this fall, with products accepted starting in the back-to-school season. Amazon continues to strengthen its presence in China, with the opening of an innovation center in Shenzhen and the reduction of fees for low-cost clothing.

In 2023, sales of items by Chinese sellers on Amazon increased by more than 20%, and the number of merchants achieving more than $10 million in sales increased by 30%.

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