Amazon to launch new discount section as it goes into battle with rivals Temu and Shien
AMAZON is believed to be on the brink of launching a new discount section offering lower-priced goods, in a bid to rival online retailers such as Temu and Shein.
The new channel would offer lower-priced items shipped directly to consumers from warehouses in China, according to reports from the Wall Street Journal.
Amazon has reportedly met with Chinese merchants to discuss its plans to sell unbranded clothing and household products on the new section.
It’s understood the meeting focused on releasing the channel in the US initially.
The marketplace would differ from Amazon’s current model, which sees it hold products in its own warehouses and ship them to consumers itself – allowing it to offer fast delivery times and exercise quality control.
Amazon’s plans are thought to be a response to the huge popularity of low-cost platforms Temu and Shein, which work on the same model.
But, shipping direct from China could mean that shoppers face longer delivery times and fewer quality checks, in return for cheaper prices.
Standard shipping from Shein takes seven-to-eight business days, while Temu says packages will arrive in six-to-eight business days with standard delivery.
The model also allows retailers to avoid the tariffs and taxes applied when importing products in bulk.
When contacted by The Sun Amazon said it was always exploring new ways to work with selling partners to “more selection, lower prices, and greater convenience”, but would not comment whether a low cost channel could be launched in the UK.
The model used by retailers such as Shein and Temu has previously been criticised by rival retailers of abusing the tax system.
Customers have also complained the quality of goods from the two retailers can be poor.
Nevertheless, both have seen huge growth in recent years and Shein could soon be the biggest listing ever recorded on the London Stock Exchange.
It has been valued at £50billion in recent fundraisings and doubled profits to £1.5billion last year.
Temu was launched in April 2023 and has seen massive growth with more than 15million people in the UK downloading the app since.
Items offered on the two marketplaces, which do not manufacture their own products, are sold for astonishing low prices.
Today Shein is offering women’s dresses for as little as £1.80, while Temu is listing a dress at just 96p.
Even if Amazon does not launch a new channel, there are plenty of ways to grab a bargain with the retailer, here a five you may not have heard about:
Amazon Warehouse
The Amazon Warehouse hub is where returned goods are relisted to be resold with further reductions.
This is a great idea for shoppers who don’t mind buying something pre-loved, but that’s still in great condition.
Items are graded from “acceptable” to “like new” and are usually priced cheaper than if you were to purchase the item brand new.
Sometimes the items come unpackaged, but this information will be included in the product description, so there are no unwanted surprises when the item arrives.
Amazon Outlet
The Amazon Outlet has hundreds of items that are surplus to requirements and being sold off at a substantial discount.
Unlike the warehouse, these items are brand new goods but just ones that Amazon or its partners want to move quickly.
All of the deals are for a limited time and you can search by category, price and discount.
Amazon Renewed
The Amazon Renewed section is a great way to bag big discounts on previously owned products and handy for tech items such as phones, tablets and games consoles.
All of the items in the renewed section are pre-owned and refurbished items that have been professionally inspected and tested to meet quality standards.
You can also buy with confidence as all products on Amazon Renewed (with the exception of Amazon devices) are backed by the Amazon Renewed Guarantee.
This means that you are eligible for a replacement or refund within one year of receiving the product if it does not work as expected.
Prime trial
If you are a regular Amazon customer then signing up for Amazon Prime could save you money,
Most people know about benefits such as free delivery and member deals, but there are many more perks too.
If you are a new Amazon Prime customer you will get your first month free when you sign up.
Deal of the day and sale times
Amazon has a special tab marked “Today’s Deals” where shoppers can find different limited-time offers each day.
You can search by department, price and discount and some of the offers are “recommended” to you based on your purchase history and views.
As well as deal of the day, customers should also remember when the big sales are happening with Amazon as this is when you can get the best discounts.
What is Shein and is it legit?
Shein is an online-only fast-fashion retailer, based out of China, that has become a number one shopping destination for many around the world.
The company was valued at $66billion in 2023, dwarfing that of popular high street brands Zara and H&M.
The fashion retailer was founded in late 2008, by entrepreneur and marketing specialist Xu Yangtian, also known as Chris Xu.
Shein is a legitimate selling website and is not a phishing scam.
But you may receive a disappointing order or run into shipping issues if you order from the site, according to reviews.
There have been swathes of quality complaints, which makes sense when looking at the price tag.
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