Amazon is reportedly set to launch a new discount section with cheap fashion and household goods sold directly from warehouses in China.
It comes as the e-commerce giant continues to face stiff competition from low-price online retailers Temu and Shein, which have exploded in popularity over the past few years. According to a report from the Wall Street Journal, Amazon is said to have met with Chinese merchants to discuss its plans, which would initially launch in the US.
However, it remains unclear how it would work in line with the current delivery plans Amazon has in place, which sees Prime members offered next-day delivery on certain items. In comparison, 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. Amazon did not comment on the report, but told The Mirror: “We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience.”
Shein was founded in 2008 and today ships to 150 countries across the world, having doubled its profits to more than $2billion (£1.6billion) last year. Temu first launched in the US in 2022 and later in the UK and ships to 50 countries worldwide. Its current worth sits at just under $150billion (£117billion).
But both firms have faced criticism over the quality of their goods, with shoppers also questioning how they keep their prices so low. Last year, US lawmakers warned there is an "extremely high risk" products sold on Temu were made with forced Uyghur labour, referring to the oppressed ethnic group in the Chinese province of Xinjiang.
Temu said: "Claims that Temu's competitive pricing is achieved through exploitative labour practices are unfounded. We are dedicated to upholding ethical labour practices and our Third-Party Code of Conduct forbids any form of forced, child, or penal labour.
"Temu requires adherence to all local labour laws, including those related to wages, working hours, voluntary employment, freedom of association, and the right to collective bargaining. We demand strict compliance with all regulatory standards and reserve the right to sever ties with any business that breaches our Code of Conduct or the law."
Meanwhile, an investigation published earlier this year by Swiss advocacy group Public Eye found some Shein suppliers are still working 75 hours a week, despite the company promising to improve conditions. At the time, Shein told the BBC it was "working hard" to address the matters raised by the Public Eye report and had made "significant progress on enhancing conditions".