Amazon A new report claims the company plans to open new stores where US-based shoppers can purchase low-priced, unbranded goods shipped directly from China. CNBC and informationThe plan is widely seen as an attempt to compete with China-based competitors such as Temu and Shein.
Amazon’s store plans were leaked on Wednesday after the online retail giant held an invitation-only conference call with Chinese sellers, according to CNBC. The presentation reportedly featured products such as arm weights and phone cases.
As CNBC explains, the plan would help Amazon ship products directly from China to US customers, a shift from the previous model that required merchants to first ship products to Amazon’s US fulfillment centers before the packages could reach American homes.
An Amazon spokesperson declined to provide further details about the plans, saying only that “we are constantly looking for new ways to work with our selling partners to delight customers with more selection, lower prices, and greater convenience.”
Amazon is clearly trying to counter relatively new competitors such as Temu and Shein, Chinese online retailers that have gained momentum in recent years with very low prices and direct shipping. And the influx of money from Chinese retailers has also helped other big tech platforms rake in cash. Temu’s parent company, PPD, for one, spent $2 billion on advertising for Meta last year, Amazon reported. The Wall Street Journal last month.
Amazon has yet to announce when its new stores will open, but a presentation to Chinese merchants today reportedly suggested they could open as soon as the fall.
