if you can't beat them, join them

Amazon Fullmanaged is Coming

In the face of the impact of platforms like Pinduoduo's Temu rapidly capturing users' attention with low prices, Amazon has chosen the strategy of "if you can't beat them, join them."

According to relevant sellers, some of them were invited to attend a closed-door meeting in Shenzhen hosted by Amazon yesterday. During the meeting, Amazon announced that it will launch a new section on its website dedicated to offering white-label, low-priced fashion, home, and lifestyle products. These products will be fulfilled and shipped directly from Amazon's warehouses operating in China, with estimated delivery within 9-11 days.

Additionally, the low-price store is currently only open to sellers through internal invitations, and invited sellers will receive official phone notifications. Amazon plans to open project registration this summer and start accepting product inventory this fall.

News of Amazon's plan to open a low-price store has sparked heated discussions among sellers. Some sellers wonder if this is Amazon's fully managed low-price model, while others think it feels similar to Shopee, which also ships products from its own warehouses to overseas markets. However, some sellers express concern that "the platform is being forced to do this due to competition, which may further compress profit margins."

The launch of Amazon's low-price store presents both opportunities and challenges for sellers. Specifically, sellers will have more autonomy, such as setting their own prices, selecting products, and participating in promotions, without having to pay advertising fees. This results in lower sales costs and provides more sales opportunities for white-label products. However, under this fully managed model, sellers may also face more intense market competition and compressed profit margins, exacerbating the intensity of internal competition.