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AMAZON Plans
Amazon plans to launch a service focused on shipping cheap fashion wear, household goods and other products directly from warehouses in China as it faces growing competition from low-cost e-commerce platforms Temu and Shein.
In an invite-only meeting with Chinese merchants Wednesday, Amazon unveiled a plan to debut a new channel on its platform to sell unbranded fashion wear and household products from China, according to a slide presentation viewed by The Wall Street Journal.
Amazon said it would ship the products directly from China to consumers in the U.S. within nine to 11 days of order placement, the slides showed. Until now, goods sold by Chinese merchants to Amazon’s U.S. customers typically have been routed through warehouses in the U.S.
One slide depicting a mock-up of a digital storefront showed products including phone cases, mugs and face massage tools.
An Amazon spokesperson said the company is “always exploring new ways to work with our selling partners” and offer customers lower prices and a greater selection. The spokesperson didn’t elaborate on plans for the new channel.
Amazon’s plan, earlier reported by The Information, marks a significant step by the U.S. e-commerce giant to safeguard its market leadership at home amid increasing competition from bargain app Temu, owned by China’s PDD Holdings PDD -1.26%decrease; red down pointing triangle, and fast-fashion giant Shein.
Fast deliveries and easy returns have been a staple of Amazon’s strategy, while Temu and Shein have drawn customers with low prices. Amazon executives have been weighing how to respond to the two competitors, who have wagered that there is a market for bargain items that take longer to arrive, the Journal has previously reported.
The two upstart e-commerce platforms, which ship products directly from China and store little inventory in the U.S., have expanded rapidly to threaten Amazon. Temu was listed as the Apple Store’s most-downloaded free app in the U.S. on Thursday, while Shein ranked seventh, according to data provider Sensor Tower.
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Tech Industry Wants to Lock Up Nuclear Power for AI
Largest tech companies are looking to buy nuclear power directly from plants, which could sap the grid of critical resources.
Amazon Web Services is nearing a deal for electricity supplied directly from a nuclear plant on the East Coast with Constellation Energy CEG the largest owner of U.S. nuclear-power plants, according to people familiar with the matter. In a separate deal in March, the Amazon.com AMZN subsidiary purchased a nuclear-powered data center in Pennsylvania for $650 million.
Tech Industry Wants to Lock Up Nuclear Power for AI – WSJ (archive.ph)
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