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Is Amazon targeting Temu’s customers with discounted Chinese imports?

Is Amazon targeting Temu’s customers with discounted Chinese imports?
Is Amazon targeting Temu’s customers with discounted Chinese imports?

If the latest reports are any indication, Made-in-China labels might soon have a dedicated section on Amazon’s marketplace. 

Reuters reports that Amazon (AMZN.O) is planning to launch its bargain section, which could directly threaten low-cost e-commerce shops Shein and Temu. The items would be shipped directly to overseas consumers from warehouses in China. 

The Information has it that items on sale would include unbranded fashion items, household goods, but also daily necessities. 

This could be considered Amazon’s ‘most aggressive response’ to China’s bargain sites. However, unlike the US retail giant’s fast-delivering legacy, it would take up to two weeks to be delivered to customers. 

Rumors or speculation? 

The news that Amazon would sell low-cost items from China has sent shockwaves through the e-commerce sector. The Information relies on a closed-door meeting between Amazon and Chinese sellers. 

For now, it seems that merchants will be able to sign up this summer and submit inventory in the fall. 

Fast or cheap? 

E-commerce experts are now raising questions about what Amazon will be telling American sellers, who are already up in arms over the unfair trade of Temu and Shein. 

It remains to be seen what impact this will have on small third-party sellers. Amazon has always prioritized speed. However, to compete with Temu and Shein, it will have to lower its standards. 

Temu’s popularity in Australia

Temu is now the fifth-largest e-commerce platform in Australia. Amazon is, however, still in the top spot. 

In February, after holding that position for years, Amazon unseated eBay as the top online marketplace in Australia. According to Pattern, an average of 75.2 million Aussies visit Amazon’s site monthly.

According to an Ipsos Iris study, Temu is slowly catching up and increasing its audience by nearly 40% in May. This is according to the digital audience measurement currency endorsed by IAB Australia. 

Temu has been available in Australia for one year, with 11 million online customers using its service. 

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About the author

Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.

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