Amazon, the world's largest e-commerce company, is creating a new section to sell ultra-low-priced products under $20 (approximately 27,750 KRW), targeting Temu and Shein.
According to the US economic media CNBC on the 27th (local time), Amazon recently revealed this plan at a private event for Chinese sellers.
Amazon plans to introduce a section on the site's homepage featuring various unbranded items. Most of these items will consist of ultra-low-priced products under $20.
Through this service, Amazon intends to ship products directly from China to the US, aiming for buyers to receive their purchases within 9 to 11 days.
Amazon launched this service to reduce costs for Chinese sellers, allowing them to test new products through small-scale production. Maria Boschetti, an Amazon spokesperson, said, "We are always working with our selling partners to find ways to delight customers with more choices, lower prices, and greater convenience."
It is not yet known when Amazon will launch the ultra-low-priced product section, but it is reported that product registration will begin this fall.
CNBC analyzed Amazon's move as an aggressive attempt to counter the onslaught from Chinese companies Temu and Shein. Over the past two years, Temu and Shein have been expanding their presence in the US market by selling clothing, electronics, and household goods at ultra-low prices.
On the New York Stock Exchange that day, Amazon's stock price rose 2.19% compared to the previous trading day, reaching $197.85.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
