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Amazon Launches Discount Storefront to Rival Temu and Shein

The new platform will feature ultra-low price caps on items shipped directly from China, marking a strategic shift for the e-commerce giant.

  • Amazon's new storefront imposes strict price caps, including $20 for sofas and $13 for guitars, to compete with low-cost retailers Temu and Shein.
  • Products will be shipped from a fulfillment center in Guangdong, China, with shipping times ranging from nine to 11 days.
  • Sellers will benefit from reduced fulfillment fees, with costs significantly lower than Amazon's domestic shipping rates.
  • Concerns about product quality and ethical sourcing are raised, as similar platforms have faced scrutiny over labor practices.
  • The move comes amid slowing growth in Amazon's retail sales, prompting the company to explore new strategies to attract budget-conscious consumers.
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