(Reuters) – Amazon.com Inc (AMZN) plans to open a section on its shopping site featuring cheap products shipped directly from Chinese warehouses to consumers overseas, the Information reported on Wednesday, citing slides shown to Chinese merchants.
The new marketplace is Amazon’s most aggressive response to the growth of bargain sites like Temu and Shein, and will reportedly sell off-brand fashion, home and everyday items, with products delivered to customers within nine to 11 days, according to the slides.
The e-commerce giant told Chinese sellers in a recent private meeting that it plans to start registering sellers this summer and begin accepting inventory in the fall, according to The Information.
According to the report, retailers participating on bargain sites can decide the product selection and price, and can also produce small quantities of upcoming products to test demand.
“Together with our selling partners, we are constantly looking for new ways to delight customers with more selection, lower prices and greater convenience,” an Amazon spokesman told Reuters when asked to comment on the report.
It’s unclear whether those shipments will be made taking advantage of a U.S. trade provision that exempts individual packages worth less than $800 from U.S. tariffs, according to the Information.
E-commerce giant Shein and Temu, an e-retailer under PDD Group, which are seeking to expand their market share ahead of their initial public offerings, are relying on the expedited customs clearance process available for direct-delivery consumer goods under $800.
(Reporting by Juby Babu in Mexico City; Editing by Shaunak Dasgupta and Vijay Kishore)
