Amazon (AMZN) has reportedly facilitated a private event during which it pitched a discount store to Chinese vendors. The tech tycoon is apparently planning to dedicate this section to budget fashion and lifestyle goods and create an avenue for direct shipments from China to the US.
Amazon Exploring Discount Store To Compete With Chinese Startups
Analysts opined that this invitation-only event is an attempt to combat the rising competition from Chinese online shopping startups such as Temu and Shein.
Both of these companies have gained traction among US consumers with their low prices on clothes, gadgets and other merchandise. Earlier this week, we reported on Shein’s IPO filing with the Financial Conduct Authority (FCA), which, if approved, would be one of the largest London listings in recent years.
According to CNBC, Amazon’s proposed storefront will stock a collection of unbranded items, many of which will be priced under $20. A simulation of this e-shop allegedly displayed a gua sha facial massager, weights and phone cases, among other items.
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Apparently, Amazon will ship these goods directly from China to the US, aiming for delivery times of between nine and 11 days. Previously, Chinese agents had to ship items through Fulfillment by Amazon. This means that goods first go to a US warehouse and are then distributed from there.
Amazon presented this initiative as a cost-saving collaboration relying on small-batch production, where manufacturing and ordering balance to curb expenses. Shein follows a similar strategy. CNBC quoted Maria Boschetti, an Amazon spokesperson, who said:
We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.
