Amazon.Com Inc (NASDAQ:AMZN) is set to launch a new section on its website dedicated to affordable fashion and lifestyle items, enabling Chinese sellers to ship directly to U.S. consumers.
The storefront marks Amazon's boldest move yet to counter rising competition from e-commerce platforms PDD Holdings Inc (NASDAQ:PDD) Temu and Shein.
Chinese e-commerce stocks, ranging from Alibaba Group Holding (NYSE:BABA) to JD.Com, Inc (NASDAQ:JD) to PDD, are trading lower Thursday.
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Temu and Shein have strong ties to China and have attracted a growing number of American shoppers with their low prices on clothing, electronics, home goods, and more.
Amazon's upcoming storefront will offer a variety of unbranded items, many priced under $20.
In the past, Chinese sellers have used Amazon's Fulfillment by Amazon (FBA) services to send goods to U.S. warehouses before dispatching them to customers, CNBC reports.
In 2023, the number of items sold by Chinese sellers on Amazon's site grew by more than 20% year-over-year.
Price Actions: BABA shares traded lower by 0.98% at $73.44 premarket at the last check on Thursday. JD stock is down 1.27% at $27.16, and PDD is down by 1.44% at $136.24.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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