Amazon plans discount store to compete with Temu
Online retail giant saw market value pass $2 trillion for the first time this week
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Your support makes all the difference.Amazon is planning to launch a new discount shopping app aimed at competing with emerging e-commerce platforms like Temu and Shein, according to reports.
The new venture was announced at a private meeting with Chinese sellers on Wednesday, with a presentation revealing that the store would stock low-cost items from China like phone cases, massage tools and clothes.
Chinese suppliers will be connected directly to shoppers in the US, CNBC and The Information reported, meaning there will be no next-day delivery. Instead, shipping times are expected to take between nine to 11 days.
An Amazon spokesperson said: “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
The Independent has reached out to Amazon for further information.
Since launching in July 2022, Temu has exploded in popularity. In 2023 it was the most-downloaded app in the US with 103 million downloads – nearly double that of its closest rival TikTok.
Despite the competition, Amazon’s market capitalisation passed $2 trillion for the first time in its 30-year history on Wednesday, having more than doubled in value since the start of last year.
The online shopping giant now ranks as the world’s fifth most valuable company, behind Microsoft, Apple, Nvidia and Alphabet (Google).
Temu remains the number one free shopping app on the Google Play Store and the Apple App Store, with a higher rating than the Amazon Shopping app.
Owned by Chinese firm PDD Holdings, Temu moved its headquarters to Ireland in 2023 as part of its global expansion plans.
Advertising with the slogan ‘Shop like a billionaire’, Temu offers thousands of unbranded products at exceptionally cheap prices. The app has also sought to gamify the shopping experience with lightning deals and countdown timers on sales.
In-app messages also promise “personalised” gifts to regular users, which have raised concerns from regulators and consumer advocacy groups.
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