Shock wave in retail: Amazon enters the sector of on-line shops with ultra-low costs and fights immediately with Temu and Shein

Amazon plans to struggle rising competitors from rivals Temu and Shein by revealing their enterprise fashions with a brand new low cost division immediately from China, writes the FT.

At a current assembly with main Chinese language retailers, the American group unveiled the brand new channel, which goals to maneuver items to American clients from warehouses in China, in line with a presentation noticed the Monetary Instances.

Amazon plans to introduce the brand new class on the house web page of its app and ship the merchandise at very low prices in 9 to 11 days, the submitting mentioned. The provide can be aimed toward US shoppers who’re prepared to attend longer than Amazon’s regular supply occasions of a day or two to get a deal.

The US group’s rush to supply low-cost items direct from China comes because it faces rising competitors from Temu and Shein, which has grown quickly by blanketing the web with advertisements for the toys. and their clothes at a bargain.

Temu, owned by PDD Holdings, and Shein, based in China, have achieved enterprise fashions that depend on Chinese language merchants delivering items to warehouses in southern China, which can then go on cargo planes to international international locations.

Particular person parcels meant for shoppers profit from the de minimis rule, which many international locations have established to permit residents to obtain parcels from overseas below a sure worth with out paying​​​​ import taxes. Within the US, the brink is ready at $800 per parcel.