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Amazon wants to win back the hearts and minds of shoppers that have been lured away by low-cost retailers Shein and Temu.
The e-commerce giant is planning to launch a new storefront featuring low-priced clothing and home products from Chinese sellers, Amazon revealed at an invite-only conference for Chinese vendors first reported by The Information.
Amazon’s strategy has been focused on fast deliveries and variety, but its foray into low-priced goods is its most blatant effort to compete with Shein and Temu, two Chinese-origin e-retailers that have upset competitors thanks to their rock-bottom prices.
U.S. consumers will be able to shop an array of unbranded items, from gua shas to phone cases, for less than $20, The Wall Street Journal reported citing a presentation shown at the event. These products will be shipped directly from Chinese warehouses — and shoppers can expect the items at their doorstep in 11 days or less.
The company did not specify when it plans to roll out the new storefront, but it said in presentation notes that it will start accepting products in the fall, according to CNBC.
“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience,” an Amazon spokesperson said.
The rise of Shein and Temu
Shein, the Singapore-based fast-fashion giant with a $45 billion valuation, and Temu, which launched at the end of 2022 and has already amassed more than 130 million global users, have had a meteoric rise.
They have already left other competitors like H&M, Fashion Nova, Forever 21, and Zara, in the dust when it comes to revenue and market share. And they have drawn the ire of e- and physical retailers, from Jane.com to Etsy to Gap, who have have blamed both Shein and Temu for turning the U.S. retail world order upside down.
But the two upstarts have also been at serious odds taking each other to court in a series of lawsuits and counter-lawsuits late last year over what each side claimed to be anti-competitive practices. In one suit, Temu accused Shein of “mafia-style intimidation of suppliers.”