Amazon prepares to compete with Temu on a low-cost product platform.

Amazon plans to launch a new e-commerce platform to compete with low-cost Chinese stores like Temu, according to
reports
revealing internal company documents.

The new platform intends to impose price caps on products, with jewelry not exceeding $8, household essentials $9, guitars $13, and sofas $20. Operations will commence from the distribution center in Guangdong province, China.

Delivery on the new platform will take 9 to 11 days, with reduced shipping fees for sellers to about $2 for lightweight products, compared to over $4 on the main platform.

This move represents a shift in Amazon’s traditional strategy as it aims to compete with the Chinese Temu platform, which has dominated the market since its launch in 2022, despite doubts about the quality of its products and labor practices.