Amazon Looking To Open A “Low-Cost” Storefont To Rival Temu: Report
Written by djfrosty on October 23, 2024
Source: picture alliance / Getty / Amazon
Word on the e-streets is that Amazon is looking to open a low-cost storefront to rival Temu. We just hope that if this is true, the products will be of good quality.
Website The Information (yes, that is the actual name) has seen internal information sent to Amazon merchants detailing the price caps of some of the products for the new low-cost storefront.
According to the website, prices are $8 for jewelry, $9 for bedding, $13 for guitars, and $20 for sofas. Everything under this new “Low-Cost Store” ships from its fulfillment center in Guangdong, China.
While you will be getting items for the low-low, don’t expect them to come at the breakneck delivery speeds you have grown accustomed to from Amazon. The Information reports that the new storefront will have slower shipping timelines of nine to 11 days, but sellers will be charged lower fulfillment fees.
Per Engadget:
A seller would be charged between $1.77 and $2.05 to ship a 4-8 ounce item through the Low-Cost Store, compared with a $2.67 to $4.16 charge for an item of that weight shipped under Fulfillment by Amazon from a domestic warehouse, according to The Information.
Amazon has not set price limits on its eponymous online storefront, so this new platform will be a markedly different strategy from its usual approach. It’s more in line with the pricing policy followed by Temu, which launched in 2022.
In its two years of existence, Temu has earned a reputation for selling items of poor quality; Amazon can swoop in and take control of another market if it delivers the same goods but with better quality.
We shall see what happens.