In recent years, the development of China’s cross-border e-commerce platform overseas is booming, which leads to the threat of foreign established e-commerce, such as Amazon, which has been in the dominant position all the year round. According to Bloomberg News, Amazon is cutting the commission fees charged for clothing merchants whose sales price is less than $20, which indicates that the company is preparing to launch a price war with China’s fast fashion upstarts, such as Temu and Shein.
On Tuesday, Amazon announced that starting from January, it will reduce the cost of clothing sellers with prices below $15 to 5%, and clothing between $15 and $20 will be reduced to 10%. Previously, the commission for these two categories was 17%. It is unusual for Amazon to reduce the so-called recommendation fee charged by its online store to merchants, and no other changes of a similar nature have been announced yet, which shows that Amazon is particularly eager to attract merchants who provide low-priced clothing. “This will make Amazon more competitive in the low-priced clothing category, because a dollar or two can have a big impact.” Lucas Barnes, a former Amazon executive and founder of PNW Web Marketing Consulting, said.
It is reported that Amazon dominates the e-commerce field in the United States, with more than $1 out of every $3 in online consumption coming from Amazon. However, it faces “new threats” from cross-border e-commerce in China, including Shein and Temu, a shopping application launched in the United States last year, which provides substantial discounts for various products. TikTok, a social media application owned by ByteDance Co., Ltd., also launched the American Store on its application earlier this year.
Post time: Dec-08-2023