Amazon is developing a new commercial platform aimed at competing with Chinese stores that offer low-priced products, such as the Temu platform, which has gained significant popularity since its inception. According to reports, internal documents of the company have revealed that Amazon plans to launch this platform with a price cap on available products.
The platform aims to offer extremely competitive prices, with jewelry prices not expected to exceed $8, bedding essentials at $9, guitars at $13, and sofas at only $20. Operations will start from a new distribution center in Guangdong province, China, enhancing delivery speed and lowering costs.
Delivery through this platform will take 9 to 11 days, with shipping fees for sellers reduced to only $2 on lightweight products, compared to Amazon’s main platform where shipping fees can exceed $4.
This shift in Amazon’s traditional strategy comes amid intense competition with platforms like Temu that have dominated the market since its launch in 2022, despite doubts about the quality of its products and labor practices. It appears that Amazon is seeking to enhance its presence in the global market and provide cost-effective shopping solutions for consumers through this move.
