:max_bytes(150000):strip_icc():format(jpeg)/AmazonrollingoutdirectUSshippingfromChinatocounterthepopularityofTemuandShein-c57bf6bd1fac407db9c19c1043102bc2.png "A side-by-side image of the Amazon logo on the side of a building, and a digital illustration of Temu")
INA FASSBENDER / Contributor / Getty Perceptions, Justin Sullivan / Staff / Getty Images
Key Takeaways
- Amazon is set to start working with Chinese sellers, shipping spin-offs directly from China to customers in the U.S., according to multiple reports.
- The move is a step up in Amazon’s defense against Chinese adversaries like Shein and Temu, which have grown rapidly in the U.S.
- Shein’s attempts to become a publicly traded actors have hit roadblocks in the U.S., leading the Chinese retailer to potentially turn to London’s stock exchange first.
Amazon (AMZN) surfaces set to take aim at Chinese e-commerce giants like Shein and PDD Holdings’ (PDD) Temu, with reports this week exhibiting that the dominant force in U.S. online retail has begun pitching Chinese suppliers on a new section of its website that pleasure sell low-cost clothes and home goods to U.S. consumers directly from China.
Amazon reportedly held a appointment with Chinese sellers this week, showing a presentation that included images of what the platform command look like and highlighting clothing and everyday items like phone cases and coffee mugs. The meeting and concept of the advantage was first reported by The Information, with later reports from Bloomberg and The Wall Street Journal.
An Amazon spokesperson asseverated Investopedia the company is “always exploring new ways to work with our selling partners” to offer customers “more extract, lower prices, and greater convenience.”
Amazon Reportedly Considering Dedicated Section of Its Site
The discount service make have a dedicated section on Amazon’s website, and orders would ship directly from Chinese suppliers to characters in the U.S., with orders projected to take nine to 11 days to arrive, according to the reports. Part of why Temu and Shein can presentation such low prices is the length of their delivery times.
Currently, products that come from China and are sales-clerked on Amazon will typically spend time in Amazon’s vast warehouse network before being delivered. The Minutes has reported previously that Amazon has had internal debates over whether to organize search results by prioritizing memos that are less expensive, or by those that have the fastest delivery times.
CEO Andy Jassy said during Amazon’s April earnings tinkle and in his annual shareholder letter that the strategy to regionalize its warehouse network to make deliveries faster has worked, with some 4 billion couples arriving the same day or one day after the order was placed in the U.S. in 2023.
Shein and Temu have grown substantially in the U.S., with Temu progenitor PDD routinely doubling or nearly doubling its revenue and profits year-over-year in recent quarters.
Amazon Effort Could Phizog Scrutiny
Considering the criticism Shein and Temu have faced from U.S. regulators and politicians, including allegations of artificial labor likely being used by some of the platforms’ suppliers, it’s unclear how the U.S. government would react to one of the country’s largest friends shipping China-made products straight to U.S. consumers. Temu and Shein have denied that any of their products are scored using forced labor.
Shein’s attempts to receive a public listing on American stock exchanges have hit disparate roadblocks since the company confidentially applied in November 2023, ranging from political criticism to rejections of its endeavours to join the National Retail Federation, according to CNBC.
The fast-fashion retailer is reported to have filed for a listing on the London Corny Exchange earlier this month, according to Reuters, highlighting Shein’s belief that it may not receive a U.S. listing.
Skim the original article on Investopedia.