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After more than five months, the "Amazon Low Price Mall" that has attracted much attention in the industry has finally unveiled a corner of its mystery. It is learned that on November 12, Amazon's low-price mall was officially launched on the mobile terminal. Currently, searching for "Haul" on the Amazon mobile app will open the low-price mall and you will see a simple and clear UI style. If you share the link of the mall, users will also find that the mall has a suffix of "Find new faves for way less", which means: buy "new favorites" with less money . On the homepage, Amazon's low-price mall, with the slogan "Crazy low prices", offers consumers a variety of preferential plans, including free shipping within $25, 5% savings on $50, 10% savings on $75 , etc. At the same time, in order to meet the shopping habits of consumers in the peak season, Amazon's low-price mall has also set up 7 special sections such as "new product recommendations, holiday supplies, gifts, and popular products" to improve consumers' shopping experience. In addition, it was observed that the first batch of goods opened in the low-price mall covered 15 major categories including clothing, jewelry, home furnishings, beauty, electronics, accessories, kitchen supplies, etc. Most of the goods were priced below US$10 or even US$7, which was consistent with previous news in the industry: nearly 700 types, with a price limit of no more than US$20, and many of the goods were limited to a maximum price of no more than US$7. The simple and clear page style, the extremely high cost-effectiveness of the products, and the focus on a number of small commodities such as clothing, 3C accessories, etc.... make many sellers' first reaction when opening the low-price mall is: it is too similar to Temu. In addition to the similarities, some sellers have also conducted a comparative investigation on similar products on the two platforms: the prices of the same products in the low-price mall's women's clothing, kitchen supplies and other categories are higher than Temu's, but some products such as 3C accessories are cheaper than Temu's, such as a mobile phone case for US$1.7 with free shipping, and a sofa for US$20 . For price-sensitive consumers in the lower-tier markets, low prices are the only attraction. Therefore, many sellers believe that Amazon may be able to win over some of Temu’s lower-tier market audiences with this low-price mall. However, as of now, Amazon's low-price mall is still in the testing phase and is only available on mobile devices. The final form and scope of its impact are still uncertain. But there is no doubt that Amazon has been eyeing the low-price market for a long time in the context of consumer downgrade. Amazon's latest financial report shows that in the third quarter of 2024, Amazon's online store net sales were US$61.41 billion, exceeding the expected US$59.64 billion, a year-on-year increase of 7.2%, an increase from the previous two quarters, but lower than the 15% increase in the global e-commerce market. The slow growth of e-commerce business data is not only due to the changes in consumption trends under the new economic cycle, but also closely related to the low-price impact launched by Temu and other four little dragons. Data shows that in 2023, Temu's independent visitors reached 467 million, ranking second in the number of visits to global e-commerce platforms, second only to Amazon. In a previous earnings call, Amazon President and CEO Andy Jassy also said bluntly: "Consumers are buying cheaper goods, which means the average selling price of the products sold has become lower." For this reason, in 2024, even a strong company like Amazon could not help but be "involved" in the price vortex, gradually moving from "pushing low prices" to "making low prices": The first is to “push low prices” , that is, to force sellers to lower prices by adjusting policies, so as to achieve the goal of low prices in a roundabout way : in January, the sales commission of some low-priced clothing products on the US site was reduced; in February, the Bazaar low-price store was launched in India on a trial basis; in September, Rufus was introduced to automatically query the historical lowest price of products; in October, the words “Not competitively priced” appeared on the details page of autumn promotion products… Then comes “low prices” , that is, launching a low-price mall to compete head-on with platforms such as Temu around “ultimate value for money”. It is worth mentioning that although Amazon's Low Price Mall is believed by many in the industry to be learning from Temu's model, judging from the information currently released, Amazon's Low Price Mall has also developed its own characteristics: the platform is also responsible for logistics, traffic and other operational processes, and sellers are responsible for product selection, but the difference is that sellers under Amazon's Low Price Mall have the right to independently set prices and manage inventory. According to feedback from the industry, the most criticized thing about Temu's low-price model by sellers is that it has "no independent pricing power." Therefore, this is also regarded by the industry as an important consideration for Amazon to successfully pry open Temu's low-price market. However, there is no doubt that Amazon's choice of the "main site + low-price mall" two-legged walking model may have a certain impact on the main site white-label sellers who have not joined the low-price mall in the initial stage: on the one hand, the fashion products, home furnishings and daily necessities opened by the mall will become the most popular categories; on the other hand, products below US$20 may become the most price-sensitive category on the platform. Although some sellers speculate that Amazon's low-price mall may further open up to sellers in the future, as of press time, Amazon has not yet publicly released relevant information on this, and the specific details of the project are still to be followed up. In the future, how far Amazon can go in its efforts to penetrate the lower-tier markets, and whether the main site can use this to screen out high-quality brand sellers, thereby forming a good growth model that walks on two legs with the low-price mall, remains to be verified by time. If you have any updated information, you can discuss it in the comment area~
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