Amazon also wants to open Temu at a low price?

Amazon also wants to open Temu at a low price?



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Temu offers 15% off on the same item on Amazon, which has snatched away a lot of Amazon's low-price traffic. Amazon immediately counterattacked: the low-price mall may be launched in November!




1

Amazon's low-price mall may be launched in November

This project was proposed by Amazon at a closed-door meeting in June in order to directly respond to the competitive pressure from Chinese cross-border e-commerce companies such as Temu and SHEIN.


Specific contents of the low-price mall:

  • The Low Price Mall is where Amazon provides white-label, low-priced fashion, home and daily necessities products directly to buyers.

  • The store is positioned as a store within the main site and shares the backend with the main site.

  • Sellers have the right to select products, set prices and participate in activities.

  • Amazon encourages merchants to sell high-quality and cost-effective products at prices not exceeding $20.

  • The products are delivered by Amazon's warehouses in China and are expected to be delivered directly to customers within 9-11 days. No returns are accepted for refunds below US$3 after the sale.




According to the latest news:

  • The earliest batch of beta test sellers can already upload links and products, and some sellers have even sent goods to Amazon's Dongguan warehouse.

  • The mall has not officially opened for sale yet, and registration is still by internal invitation, but a large number of sellers who have received invitations are still waiting and watching.

  • The first batch of internal test sellers was about 100. Many billion-level sellers did not receive invitations to Amazon’s internal meeting in June. It is speculated that the invitations were restricted by categories and seller types, and only a small number of sellers were selected for testing in each category.

  • The low-price mall is not perfect yet, and the internal test sellers reported that the link upload is very messy

  • It will be officially launched as early as November!



As to whether it can be launched in November, some sellers speculated that the tightening of T86 customs clearance + Amazon's efficiency + the disagreement within Amazon may cause the launch time to be postponed from one month to another.





2

Will sellers look forward to Amazon's low-price marketplace?

Seller: Looking forward to


Sellers have been driven crazy by domestic low-price platforms, no kidding. A seller complained that he sold a product worth 100 yuan on a certain platform, but the delivery was delayed, so he was fined 35 yuan to compensate the buyer. I bought something worth 100 yuan myself, but it was shipped late, so he was compensated 3 yuan.


Moreover, the buyer had just consulted customer service because the item was a little damaged, and the platform popped up to ask if he needed after-sales service. He could choose to get a full refund or compensate 30 yuan.



Sellers complained that this was business or charity. They accused Chinese-developed platforms of only creating low prices and creating an unhealthy e-commerce environment.



Seller: Not expecting


American platforms are used to monopolizing things, and monopoly means high premiums. At that time, I was at the mercy of others and had to sell whatever they wanted.


I am more optimistic about Temu's semi-hosting. Referring to JD.com and Taobao in China, JD.com's market share is declining. Like Amazon , it is a seller, but Temu is a pure platform. Temu improves the delivery experience through third-party logistics and can provide buyers with low-priced products.


Nowadays, products with the best price-performance ratio are in urgent demand around the world. As China is a manufacturing powerhouse, an insider revealed that if it were not for Temu, many manufacturers and small factories in East China would face bankruptcy. If a price war were to take place, Amazon would definitely not be Temu's opponent.




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