Amazon is planning to introduce a new section on its site that will have cheap Chinese stuff for sale. Such products will ship internationally directly from warehouses in China and should reach buyers in the US within 9 to 11 days. This, experts believe, will help Amazon stave off competition from retailers like Temu and Shein that sell cheap Chinese products and ship almost anywhere in the world. Such products include unbranded fashion, daily-use items, and other household products.
According to CNBC, Amazon plans to sign up Chinese sellers by this summer itself followed by building up inventory by fall this year. Amazon is also letting sellers select the products they plan to sell as well as the price. This, Amazon believes will let it determine demand for such products from overseas buyers before going big on it.
Many of the unbranded products are priced at less than $20, which makes them incredibly cheap compared to what the competition has to offer. However, while the products might be priced incredibly low, the quality remains questionable. Amazon said there has been a 20 percent jump in the number of Chinese sellers year-on-year in 2023. Similarly, Chinese sellers with sales of more than $10 million increased by 30 percent.
Meanwhile, it is not known right now if the shipments are going to use a United States trade provision that exempts individual packages valued at less than $800 from US customs duties. In the past, Chinese sellers on Amazon used the Fulfillment by Amazon (FBA) service to send their products to warehouses in the US before distributing them to customers.
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