Amazon Discount

Amazon has new competition coming for its e-commerce crown. Discount bands like Temu and Shein have over the years been making Amazon worry about maintaining its market share. 

But the company has a plan…

And that’s beating these brands at their own game.

Amazon’s Discount Initiative

In an invite-only meeting

Amazon announced to Chinese merchants that it’s launching a new service selling discounted unbranded goods. 

This new service is intended to help Amazon compete with the discounts offered by low-cost Temu and Shein. But the only way for the company to compete with these new giants is to follow their rule book…

And their supply chain.

In the last few years, Shein and Temu have won over tens of millions of shoppers thanks to an endless range of cheap and appealing products. 

In just one year, Temu gained 51 million active monthly visitors to its app.

To put it into perspective…


Not to mention, Temu has quickly become the App Store’s number one most-downloaded free app, with Shein in 7th place. 

This tells experts that consumers are more willing to wait for their packages and purchases if they are dirt cheap. And for Amazon, fighting back against these discounts is a huge uphill battle. 

Amazon gained its base by promising users fast shipping and deals on different products. Shein and Temu, however, gained huge followings by keeping their prices as low as possible. 

So how exactly will Amazon’s discount service fight back against these two e-commerce disruptors?

Amazon’s Edge In Competition

Amazon’s proposed discount service will offer similarly cheap goods and clothing that will take longer to ship

Copying Temu and Shein’s strategy.

Because Amazon can’t compete with lower prices, the company is modeling the new service off of the supply chains of its rivals. 

The reason Temu and Shein can keep prices so low is that they avoid paying the expensive shipping costs

Hence the long delivery times for their packages. 

Amazon’s average package delivery time is just under two days…


This shift in priorities for Amazon shows that to remain competitive, the company will ease up on its shipping standards. 

Whether this new discount service will put Amazon back on top in the U.S. is still uncertain, but one thing is true…

If you want to stay on top, you’re going to have to learn from your competitors…

Even if it means changing your strategy.

Be Great, 

GCTV Staff

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