Amazon is coming for popular China-linked online retailers Temu and Shein with plans for a discount section offering unbranded clothing, home goods and everyday necessities shipped directly to overseas customers from warehouses in China.
The e-commerce behemoth laid out details of the forthcoming new storefront recently in a closed-door meeting with Chinese sellers, according to The Information, which first reported the news.
According to the outlet, Amazon told the suppliers it would begin signing up merchants for the shop this summer, and begin accepting inventory sometime in the fall.
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Sellers joining the bargain site can determine their product selection and pricing, and they can produce in small batches to test the demand for any new products they plan to launch, the report added.
In response to the report, Amazon told FOX Business in a statement, “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
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It is not clear whether these shipments will be made using a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties, The Information reported.
E-commerce powerhouse Shein, which is trying to expand its market share before going public, and PDD Group-owned e-retailer Temu depend on the expedited clearance process, which is available for direct-to-consumer shipments valued at $800 or less.
Reuters contributed to this report.
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