Amazon Plans Discount Web Store to Counter China's Temu, Shein

Show Transcript
Bloomberg Jun 27 02:26 · 4683 Views

Amazon.com Inc. plans to launch an online storefront for low-priced apparel and home goods to be shipped directly from China. The Seattle-based e-commerce giant aims to counter the rise of discount upstarts like Temu and Shein. Annabelle Droulers reports on Bloomberg Television.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more

Transcript

  • 00:00 You've really got to think about the business model and what has made
  • 00:03 TE MU and Sheehan so successful as their approach where they're direct to consumer.
  • 00:07 So
  • 00:09 in a lot of cases, you would have businesses that sort of act as intermediaries.
  • 00:13 I buy from the factory in China.
  • 00:15 I set up my site on Amazon, and I sell with a slight premium on it.
  • 00:18 And that's how you make money out of it.
  • 00:20 Tamu and Sheehan came in with this new approach.
  • 00:23 And so they were correct connecting factories directly to consumers.
  • 00:26 They were cutting out that middleman and they were offering cheaper prices.
  • 00:29 And off the back of that, they gained so much market share.
  • 00:32 Now Amazon is coming in and they're saying, OK, we're going to follow that approach.
  • 00:35 We're going to trial that they're starting at perhaps as soon as next week.
  • 00:38 It's still going to be
  • 00:39 on the Amazon website, a part of it.
  • 00:42 It's open to invited sellers only,
  • 00:44 but certainly something to track and and a new direction that Amazon is going in after we saw them actually cutting
  • 00:51 prices or fees for merchants selling clothes priced below $20 earlier this year.
  • 00:55 They're clearly aware of the the threat that Sheehan and Tamil opposed.