Amazon, an immense player in the e-commerce space, is set to take over the ultra-fast fashion business, which is now controlled by Shein and Temu, two Chinese retailers. Amazon is entering a growing market niche with this calculated move that is distinguished by extremely low prices and direct-from-China shipping methods.
Given that Temu and Shein are allegedly shipping up to a million parcels to the US every day, Amazon’s absence from this lucrative market has been noticeable. The massive Seattle-based company plans to compete in this extremely price-sensitive industry by utilizing its extensive infrastructure and client base.
Industry observers point out that pricing is still the main factor influencing consumer behavior, frequently taking precedence over issues with sustainability or customer care. Given that customers are ready to endure longer delivery periods in exchange for noticeably reduced pricing, Amazon’s well-honed delivery capabilities—traditionally a crucial differentiator—may become less of an advantage.
Jian long Hu, the CEO of Brands Factory, has revealed that Amazon’s next discount marketplace will prioritize products in the fashion, home, and lifestyle categories that cost less than $20. Amazon manages delivery from its Chinese warehouses directly to US clients, earning a commission on sales. This business is quite similar to Shein and Temu’s.
Despite regulatory concerns, Amazon might make a significant profit from this project by using its current customer base of more than 200 million US consumers. Given that 57 percent of US consumers, according to recent statistics from Omni send, made purchases on Temu in the previous year, it looks like Amazon is in a strong position to take a significant portion of this growing market. The trend towards ever-cheaper, ever-faster fashion may very well pick up steam with Amazon’s entry into this market;
