Amazon’s Bargain Store Would Use Same Trade ‘Loophole’ as Temu, Shein https://lnkd.in/ePumjTCU
The Information’s Post
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Global E-Commerce Director ECCO | Leading the omnichannel transformation through building best teams, tech and processes.
Amazon opens a new section with cheap goods directly from China. 2$ trillion #ecommerce giant Amazon is now competing with SHEIN and Temu on “direct-from-factory” trend. In a recent closed-door meeting Amazon told Chinese sellers it would start signing up merchants this summer and begin accepting inventory in the fall, according to the Information. The new marketplace will offer unbranded fashion, home goods and daily necessities, according to the slides, shown by Amazon to Chinese vendors, and the products will be delivered between 9 to 11 days to customers, the report said. It is not clear if these shipments will be made using a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties, Information reported. I would say that this is a fantastic opportunity for Amazon not only to jump on trends and put some pressure on their rivals, but also to test products before adding them to US based fulfilment centre’s with a next day delivery option once another item goes viral on TikTok. I think that the growing presence of cheap “direct-from-factory” platforms only adds more pressure on the need to build a brand, because in the end of the day that is the only thing that makes people pay premium for a product. Link to news article in first comment. #dtc #ecommerce #retail #directfromfactory #temu #shein #amazon #retailnews #retailtrends
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To summarise it badly, the Amazon vs. SHEIN/ Temu saga goes a little bit like this. Amazon has higher prices but shorter delivery times. The latter companies boast the opposite. It seems like with this latest move - offer goods at lower prices but with a longer delivery time - Amazon is looking to even the playing field. I am just unsure the field is as simple as I outlined. From what I can I understand despite of my generation gap, Shein and Temu have really doubled down into making the experience great fun, gamifying loyalty and focusing on high engagements categories. Levelling down (if you can't beat them join them?) is never a great idea in business; meeting the competition on prices and delivery might not necessarily guaranteed market share - or love share - from very engaged shoppers. Given the opportunity, the ethics and sustainability card would have been my play of choice (if you can't delight them, at least raise the moral grounds). Only time - and the inexplicable desire for items you did not know you needed - will tell! #acinmilan #innovation #retail #shopping #commerce Jill (Puleri) Standish Laurent Thoumine Andrea Ruzzi Mauro Toffoli Emilio Cogliati Linda Miccolis Kieran Mongon Kelly Askew Till Dudler Karen Fang Grant Matt Jeffers Nevine El-Warraky Alberto Dolci Gavin Pape Matteo Arata Ryan Shanks Cara Smyth
Amazon set to take on Temu and Shein with new discount section
ft.com
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Amazon Makes Its Move 🚀 Amazon is planning to pave a new way for direct shipments from China by launching a new discount section. With this move, it can potentially win more retail market share from Shein and Temu. 📦 According to Reuters, products will be shipped internationally directly from warehouses in China and should be delivered to buyers in the US within 9 to 11 days. 🛫 Furthermore, this new direct shipping model is presented as a cost-saving strategy for Chinese sellers. 💰 It allows them to test new products through small-batch production, similar to Shein’s on-demand manufacturing approach. Let's see what tomorrow brings. 🔍 #AmazonShipping #DirectFromChina #RetailMarket #EcommerceNews #Shein #Temu #GlobalTrade
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𝐈𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐒𝐜𝐚𝐦𝐚𝐳𝐨𝐧 𝐒𝐮𝐛-𝐏𝐫𝐢𝐦𝐞 – 𝐀𝐦𝐚𝐳𝐨𝐧 𝐣𝐨𝐢𝐧𝐬 𝐭𝐡𝐞 𝐝𝐚𝐫𝐤 𝐬𝐢𝐝𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐟𝐨𝐫𝐜𝐞 That’s what I came across reading what Redditors think about this newest change that will take place this autumn. Amazon will create an online storefront focused on selling dirt-cheap goods shipped directly from China instead of Amazon’s warehouses. 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬' 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - they are excited about having more access to more affordable shopping goods while enjoying Amazon’s reliable delivery options and customer service. A lot of them mention that the goods sold were “crap from China” anyway, just sold at a higher markup so they see this change as a great opportunity to save money in this inflationary economy. 𝐀𝐦𝐚𝐳𝐨𝐧 𝐬𝐞𝐥𝐥𝐞𝐫𝐬’ 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - they are concerned about the negative impact this will have on their market share. Another concern is that they’ll face more counterfeit and low-quality products from the competition. 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞 - some analysts think this is a smart move by Amazon to counteract competition from Temu and Shein, and others are concerned about the sustainability of small businesses that sell on Amazon. 𝐀𝐦𝐚𝐳𝐨𝐧’𝐬 𝐩𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞: 𝐈𝐟 𝐲𝐨𝐮 𝐜𝐚𝐧’𝐭 𝐛𝐞𝐚𝐭 𝐭𝐡𝐞𝐦 – 𝐣𝐨𝐢𝐧 𝐭𝐡𝐞𝐦. What is your perspective? https://lnkd.in/dXZDjTwp
Amazon launching Shein, Temu competitor with direct shipping from China
foxbusiness.com
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One of my interests in research concerns business history, especially how company strategies evolve. In that regard, I've always found Alfred Chandler's writings fascinating (I'll put a link to an open access article in the comments). As such, when I read of companies undertaking strategy changes, I tend to frame those decisions within the framework(s) that Chandler developed. I mention this because I believe Chandler would be scratching his head (as I am) about the recent story that Amazon plans on competing with Temu and Shein by effectively cloning their strategy (see the WSJ article below). Some concerns I have with this strategy: •Shein and Temu are far down the learning curve in the direct China -> USA model (as opposed to sourcing from Chinese suppliers and then feeding those goods into a domestic US distribution network). As such, Amazon will be competing at a disadvantage (both in terms of cost and service) for an extended period before it can move down this learning curve. Shein and Temu clearly have first-mover advantages in this regard. •The proposed lead time for direct China -> USA shipments to consumers are 9-11 days. These lead times risk alienating Amazon's customers, who have come to expect lead times of 2 days or less. The general public doesn't understand they can't order cheap products directly from China and get a product at low cost in 2 days because the air freight cost would be prohibitive. This has the potential to create confusion within the customer base. Implication: if I was Amazon, I would continue with my strategy of providing an assortment of quality products with very short lead times (and make investments accordingly), and compete along these dimensions, as opposed to trying to take on low-cost firms at their own game. #supplychain #supplychainmanagement #ecommerce #shipsandshipping #freight https://lnkd.in/gxeNs3w2
Amazon Takes On Chinese Rivals Temu and Shein With Plans for New Discount Service
wsj.com
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Amazon Account Manager | Highly skilled in Amazon SEO, Design, Catalog, PPC and Reviving Sales on Amazon
Amazon’s aggressive response to Temu/Shein Amazon is stepping up its game to compete with popular platforms like Temu and Shein by launching a new discount section all shipped directly from China. Why is this big news? Benefits: 1. Lower Prices: By shipping directly from China, Amazon aims to cut middleman’s costs and pass the savings on to you. 2. More Selection: Expect a wider range of products to choose from, making your shopping experience even better. 3. Greater Convenience: Though shipping times will be a bit longer (9-11 days), the savings and variety make it worth the wait. Disadvantages: 1. Longer Shipping Times: Products will take between 9-11 days to arrive, which is longer than the typical Amazon Prime delivery. 2. Potential Quality Concerns: With unbranded items, there may be variability in product quality. 3. Customs and Tariffs: There is concern about potential changes to the U.S. trade provision that exempts packages worth less than $800 from customs duties. This could impact costs and delivery times. Amazon's spokesperson mentioned, "We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience." Is Amazon going to do this at the cost of cheap and unbranded products? What are your opinions? #Amazon #Ecommerce #OnlineShopping #Discounts #Retail #ConsumerGoods #China
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Helping Brands, Agencies, Aggregators with a high-scale Amazon / eCommerce Data Infrastructure & Ad Optimization Platform
Amazon just announced they are going to launch Temu-like discount section with direct shipping from china. Could be a huge blow to Temu and other Chinese companies, and It shows just how strong Amazon is! How will this impact brands and customers ? Let me know your thoughts below! #amazon #china #temu #shopify
Amazon To Launch Temu-Like Discount Section With Direct Shipping From China
theinformation.com
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Finance Director | Head of Finance | Financial Controller | Group Finance Manager | Senior Finance Consultant
Amazon to introduce new market place as a direct response to the continued growth of bargain sites such as Temu and Shein.... The new format will allow products to be shipped directly from Chinese Warehouses. The US though has a trade provision that exempts individual packages worth less than $800 from US custom duties........therefore the law may need to be changed to ensure that US consumers can benefit from the new venture. Product delivery for these cheaper non branded items will be between 9-11 days..... Should Amazon stick to it's core businesses..............or is this a masterstroke that will ensure Amazon's continued success, while simultaneously curbing the growth trajectory of companies like, 'Shein' and 'Temu'??? https://lnkd.in/ewQK_v4t
Amazon to launch discount section with direct shipping from China: Report
aljazeera.com
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It's about to get worse. US manufacturers of consumer goods have been fighting the impact of SHEIN and Temu, which have been providing cheap, Chinese-made goods to consumers through a loophole in US trade law. Now that there is some traction with legislators to stop these companies, as well as recent backlash about SHEIN's IPO, Amazon is positioning itself to be the winner. With SHEIN and Temu leading the way in getting consumers comfortable with this model (low cost, slightly longer shipping, low expectations for product quality), Amazon is the ultimate platform to truly embed this buying behavior with US consumers. US manufacturers of consumer goods will not be able to hold on much longer. This duty-free loophole needs to be closed, or loss of US companies (and jobs) will continue. https://lnkd.in/gjiwC9ir #MadeInChina #Loophole #Shein #Temu #Manufacturing #Consumer #Ecommerce #OnlineBusiness #DeMinimis
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Temu & Shein enable sellers to store goods in China and upon ordering these goods are sent across the globe via airfreight. The advantages are two-fold (1) Lower inventory across the supply chain (faster replenishments) (2) Lower fulfilment labor & storage cost (US vs. China). Amazon already has the infrastructure to do this in China and has lower last mile cost in the West through their own fleet. Hence seems a no brainer in order to provide a cheaper offering (albeit longer lead times) for customers. On the consumer front there is already a blueprint, Taobao/Alibaba did the same move with a cheaper section (& even app) to fight PDD.
Amazon is launching a Shein and Temu competitor
qz.com
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