Amazon, $AMZN, to launch Temu-like discount section with direct shipping from China

Amazon, $AMZN, to launch Temu-like discount section with direct shipping from China.

Amazon.com (AMZN.O) plans to introduce a new section on its shopping site featuring inexpensive items that will ship directly to international consumers from warehouses in China, the Information reported on Wednesday, citing slides shown to Chinese sellers.

This new marketplace, Amazon's most assertive response to the rise of bargain sites like Temu and Shein, will offer unbranded fashion, home goods, and daily necessities, according to the slides. The products will be delivered to customers within 9 to 11 days, the report stated.

During a recent closed-door meeting, Amazon informed Chinese sellers that it would begin signing up merchants this summer and start accepting inventory in the fall, as reported by the Information.

Sellers joining the bargain site will have the ability to determine their product selection and pricing, and they can produce in small batches to test the demand for any new products they plan to launch, the report added.

"We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices, and greater convenience," an Amazon spokesperson told Reuters when contacted for comment on the report.

It remains unclear if these shipments will utilize a U.S. trade provision that exempts individual packages worth less than $800 from U.S. customs duties, according to the Information.

E-commerce giants Shein, which is trying to expand its market share before going public, and PDD Group-owned (PDD.O) e-retailer Temu, rely on the expedited clearance process available for direct-to-consumer shipments valued at $800 or less.