Amazon opens up to Chinese sellers. Will he be able to break Temu and Shein’s monopoly?

Luc Williams

Chinese domination in the American market

As the latest research conducted by Jungle Scout and published by ECDB shows, more than 70 percent of the products that wholesalers and retailers sell on the U.S. platform AmazonIs manufactured in China. United States are the second largest producer of items sold on Amazon, accounting for 30 percent of all goods sold through the e-commerce giant. The surveyed retailers also indicated other countries where the goods they sold were to come from, which is why the total share of producer countries exceeds 100 percent. These numbers illustrate the importance of China to Amazon’s business.

Ago and Shein like Amazon

A separate issue is the conquest of Western e-commerce markets by Chinese companies. Companies such as Pinduoduo Group operate on similar principles to Amazon: they do not produce anything themselves, but through their platforms, they provide producers or wholesalers with direct access to customers. Until recently, their offer was only available on the domestic Chinese market. Platforms such as: Ago and Shein. With their help, Chinese manufacturers sell goods produced in the Far East directly to Western customers. They offer cheap products of various quality, but there are still many people willing to buy their goods.

The undoubted success of Temu and Shein is overshadowed protest of 6 EU countries, including Poland. It concerns the fact that many goods sold on these platforms do not meet EU requirements. Consumer organizations accuse both platforms of enabling counterfeit trade Whether goods without the necessary certificateswhich is severely punished in the EU.

Amazon will compete with Chinese platforms

Amazon, however, is not burying pears in the ashes. According to media reports cited by Statist.com, the American sales platform plans to launch its own low-cost offer soon. During a presentation seen by CNBC journalists, Amazon revealed thatnew store will offer a range goods without a brandand their prices are to be lower than USD 20 (approx. PLN 77.80). The products mentioned included massage devices, fitness weights and mobile phone cases. As with Temu, products will be shipped directly from sellers in China.

About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.