Overseas cross-border e-commerce a new war

Recently, Amazon’s “low price store” project surfaced. An Amazon seller told First Finance that on June 26, Amazon held a closed-door meeting in Shenzhen and invited some merchants to communicate with sellers on the new project “low-price store”. Subsequently, on June 27, the Amazon team also communicated with some merchants who did not attend the closed-door meeting about the low-price store project.

A Hangzhou merchant told First Finance and Economics that as far as he understands, the “low-price store” has a separate entrance on the Amazon main station, and the background merchants will sell goods in the form of “shop-to-shop” in the “low-price store” channel, and Amazon has a special path to manage the “low-price goods” channel. The “low price stores” sell goods priced under $20 and are sold as white brands, or if they are not white brands, they will also be sold without the logo.

The merchant said that before the Spring Festival, Amazon had proposed the concept of “low-price goods”, defined as goods under $20, and set up a related project team, which will gradually land this year.

Why is Amazon suddenly setting its sights on lower-priced goods? Industry insiders generally believe that this is a bullet fired by Amazon to Temu and Shein, and whether Amazon can block the expansion of Temu and Shein through the supplement of “low-cost goods” is becoming a new war in the overseas cross-border e-commerce market competition.