Amazon (AMZN) reportedly held a private event to pitch its discount store to Chinese vendors, with the tech giant apparently planning to dedicate a section to lower-priced fashion and lifestyle products and create an avenue for direct shipping from China to the US.
Analysts said the invitation-only event was an attempt to counter growing competition from Chinese online shopping startups such as Temu and Shein.
Both companies have been popular with U.S. consumers for their low prices on clothing, gadgets and other goods. Earlier this week, we reported that Shein had filed with the Financial Conduct Authority (FCA) for an IPO that, if approved, would be the largest London listing in recent history.
According to CNBC, Amazon’s proposed store would stock a wide range of off-brand products, many of which would be priced under $20. A simulation of the online retailer reportedly showed items like a gua sha facial massager, weights, and phone cases.
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Apparently, Amazon will be shipping these items directly from China to the US, aiming for delivery within 9 to 11 days. Until now, Chinese distributors had to ship the items through Amazon Fulfillment, which meant the items would first be sent to a US warehouse and then shipped from there.
Amazon presented the initiative as a cost-saving collaboration through smaller batches that balance manufacturing and ordering to keep expenses down, a strategy that Shain is pursuing, CNBC quoted Amazon spokesperson Maria Boschetti as saying.
We are constantly looking for new ways to work with our distribution partners to delight our customers with more selection, lower prices and greater convenience.
