Price war intensifies as Amazon reportedly targets Chinese sellers offering cheap goods on Temu

Amazon challenges Chinese sellers on Temu, aiming to maintain competitive pricing to protect market share.

: Amazon has directed some Chinese merchants to stop listing lower-priced products on Temu due to its aggressive pricing strategy. This move comes as Temu gains traction among US consumers, even becoming the most downloaded app in 2024. The competition has led Amazon to enforce policies ensuring prices on its platform remain competitive. Despite denying any requirement for exclusive selling, Amazon continues to support sellers in a multi-channel strategy.

Amazon is reportedly pressuring Chinese cross-border sellers to avoid offering lower-priced goods on Temu to maintain its competitive edge. The move highlights Amazon’s challenge in protecting its market share against the budget retailer owned by PDD Holdings, which has been growing in popularity in the US due to its aggressive pricing.

The situation has escalated with rumors of Amazon’s involvement following Anker’s removal from Temu, which saw its two official stores temporarily on hold. Amazon's recent enforcement of pricing policies includes monitoring prices on Temu and penalizing sellers with higher prices on Amazon, potentially removing them from the “Featured Offer” program.

Temu's pricing strategy, though drawing consumers in, poses questions about its ethical standards and legitimacy. While PDD Holdings has faced little scrutiny in China, similar strategies in the US raise concerns, with affordability and ethical considerations at odds in Temu’s expansion efforts.

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