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"Inside Amazon, Temu's Rise Prompts Soul Searching"
Stay on top of your eCommerce news through The Information
The Information covers e-commerce trends closely and is first to report that Amazon executives, including Doug Herrington, were alarmed by Chinese competitor Temu's low prices and discussed responses such as lowering seller fees. The struggle against Chinese rivals like Temu, Shein, and TikTok Shop highlights Amazon's delicate balancing act. While Amazon's reliance on Chinese sellers grows, it faces risks like geopolitical events and regulatory restrictions. The discussions reveal Amazon's efforts to compete with rivals offering cheap, trendy items but pose challenges to its reputation for speedy shipping.
The Takeaway
• Temu launch sparked anxiety among Amazon executives
• Amazon leadership discussed overhauling seller fees and adding second buy box
• Amazon merchants say they can’t compete with Temu and Shein under current fee structure
Read the full article to learn more.
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