Amazon to launch discount section with direct shipping from China: Report

The shopping section is Amazon’s most aggressive response to the growth of bargain sites like Temu and Shein.

amazon
The new marketplace will offer unbranded fashion, home goods and daily necessities [File: Gonzalo Fuentes/Reuters]

Amazon.com plans to launch a section on its shopping site featuring cheap items that ship directly to overseas consumers from warehouses in China, tech news site The Information has reported, citing slides shown to Chinese sellers.

The new marketplace, Amazon’s most aggressive response to the growth of bargain sites like Temu and Shein, will offer unbranded fashion, home goods and daily necessities, according to the slides, and the products will be delivered between 9 to 11 days to customers, the report published on Wednesday said.

The e-commerce giant in a recent closed-door meeting told Chinese sellers it would start signing up merchants this summer and begin accepting inventory in the fall, according to The Information.

Sellers joining the bargain site can determine their product selection and pricing, and can produce in small batches to test the demand for any new products they plan to launch, the report added.

“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” an Amazon spokesperson told Reuters news agency when contacted for comment on the report.

It is not clear if these shipments will be made using a United States trade provision that exempts individual packages worth less than $800 from US customs duties, The Information reported.

Both e-commerce powerhouse Shein, which is trying to expand its market share before going public, and PDD Group-owned e-retailer Temu depend on the expedited clearance process, which is available for direct-to-consumer shipments valued at $800 or less.

Source: Reuters