Amazon is anxious! Will the new project target Temu?

In order to fight against Temu, Amazon used its ultimate move.

As emerging platforms grow at an unstoppable pace with their low-price strategies, even a giant like Amazon cannot help but be "caught up" in the price vortex.

No, there is news that Amazon has exploded with full hosting? !

This is a bombshell dropped on the cross-border e-commerce industry!

Amazon launches low-price store

Yesterday, Amazon held an internal closed-door meeting in Shenzhen to introduce a new major project - the low-price store - to the participating sellers.

According to the on-site information, the low-price store launched by Amazon this time is similar to Taobao's "Taote". Its core model is to open a new channel on the Amazon main site. The store backend is the same as the main site, which is equivalent to a store that specializes in providing customers with white-label low-price fashion, home and daily necessities . The warehouses operated by Amazon in China will be used for fulfillment and delivery , and the goods are expected to be delivered directly to customers within 9-11 days.

From this perspective, it looks like full hosting!

However, unlike full hosting, under Amazon's low-price store project, although sellers do not have the right to advertise, they still have the right to select products, set prices and participate in activities.

According to the information, this new low-price store can also significantly reduce sellers' fulfillment costs and save costs, and there are special rates for low-priced and low-weight goods. Compared with the standard FBA service, it can save 45% of costs .

At present, the low-price store is an internal invitation system , and the category focuses on white-label low-priced fashionable home living products . The investment is almost the same as Temu . It is reported that Amazon will start accepting goods into the warehouse in the fall of 2024 and open project registration this summer.

Industry insiders believe that Amazon's launch of the "low-price store" is aimed at the full hosting model of TikTok and Temu. Let's summarize:

Sellers rush to open low-price stores?

As soon as the news of Amazon launching a "low-price store" spread, it caused an uproar among merchants.

Some merchants were ecstatic and kept asking "how to join", hoping to reap the benefits of the low-price stores as soon as possible;

Some sellers worry that "the lowest price wins, and the competition will get more and more fierce, and in the end no one will make any profit";

Some sellers are optimistic that low-price stores will provide more opportunities for white-label products, helping to increase sales and market share...

It is reported that as early as February this year, Amazon took the lead in testing the waters in India and launched a special store called "Bazaar". The overall price is less than 600 Indian rupees. The main business is the sale of unbranded, fashion and lifestyle products, aiming to reach the middle and low-income groups who pursue cost-effectiveness.

The low-price mall launched today has many similarities with India's Bazaar in terms of model and logic. We can boldly speculate that in the face of the low-price impact of Temu and other platforms, Amazon's counterattack has been brewing for a long time.

Currently, low-price stores are attracting people's attention with their low-price model, direct domestic delivery, and logistics costs. Their actual application can be said to be mixed, and the pros and cons cannot be determined for the time being, but it is bound to aggravate internal competition. Whether or not to participate is up to each of you to weigh.