Today, Amazon has a stranglehold on e-commerce. In just a few years, Jeff Bezos’ online sales platform has infiltrated our daily lives, becoming a reflex for many Internet users. According to a ranking produced by Fevad last February, Amazon has no less than 50 million unique visitors on average each month.
But for some time now, Amazon’s reign has been threatened by the arrival of particularly aggressive Chinese competitors. The Temu and Shein platforms have taken the web by storm with fearsomely low prices, increasingly attracting consumers looking for savings. Jeff Bezos is tired of being walked on and is going on the offensive. Amazon will unveil its new section with considerably lower prices for products that are more low-cost than ever.
Change of strategy for Amazon
For years, Amazon has been striving to improve to always satisfy its customers. This involves, in particular, increasingly shorter delivery times. Today, when an Amazon Prime member orders on the platform, they can receive their order the next day. Amazon even wants to go further by delivering orders the same day under certain conditions. But with the arrival of its new section, the e-commerce giant is changing its approach.
According to The InformationAmazon intends to extinguish the competition by playing its own game. The American online sales platform wants to sell products at particularly aggressive prices, like 20 dollar sofasguitars for 13 dollars or even bed sets for 9 dollars maximum.
To be able to offer such low prices, the giant will open a distribution center in Guangdong province. So, orders will be shipped directly from warehouses in China. Amazon will therefore limit its logistics costs and sellers will benefit from plummeting management fees. In addition, a loophole in American law allows the platform to slip through the cracks and not pay customs fees.
With this Low Cost Store, you have to forget about deliveries in record time. Amazon understands that consumers are willing to wait a little longer if it means prices are better for them. Therefore, one should expect delivery times 9 to 11 days.
We can understand Amazon’s need to want to retaliate in a grandiose manner to its Chinese competitors. But this raises questions about Amazon’s brand image and product quality in the coming months. This sudden change in strategy is risky, it’s true, but the e-commerce giant seems to believe that it has no choice. The arrival of this super low-cost section could well reshape the e-commerce landscape. For better and for worse.
- Amazon will launch a section with ultra low-cost products with very aggressive prices
- The e-commerce giant wants to compete with the Chinese Temu and Shein
- For this, Amazon will open a distribution center in Guangdong province in China
