Source: picture alliance / Getty / Amazon
Word on the e-streets is that Amazon wants to open a low-cost storefront in rival Temu. We only hope that if this is the case, the products will be of good quality.
Website The Information (yes, that's the real name) has seen internal information sent to Amazon merchants detailing the price caps on some of the products for the new low-cost storefront.
According to the website, prices are $8 for jewelry, $9 for bedding, $13 for guitars and $20 for couches. Everything under this new “Low Cost Store” ships from its fulfillment center in Guangdong, China.
While you'll get products for low prices, don't expect them to come with the breakneck delivery speeds you're used to from Amazon. The Information says the new storefront will have slower shipping times of nine to 11 days, but sellers will be charged lower fulfillment fees.
Per Engadget:
A seller would be charged between $1.77 and $2.05 to ship a 4-8 ounce item through the discount store, compared to charging $2.67 to $4.16 for an item of that weight shipped under Fulfillment by Amazon from a domestic warehouse, according to The Information.
Amazon has not set price limits on its eponymous online store, so this new platform will be a markedly different strategy than its usual approach. It is more in line with the pricing policy followed by Temu, which was launched in 2022.
In its two years of existence, Temu has gained a reputation for selling poor quality items. Amazon can enter and take control of another market if it delivers the same products but with better quality.
We'll see what happens.
