Amazon Low-price Online Store: a further ‘low-price involution’ for global e-commerce?
On June 28, shares of U.S. e-commerce giant Amazon (AMZN.US) hit another all-time high, with a market capitalization rising by 2.19% to an outstanding $2.06 trillion.
According to online rumors, Amazon plans to open a new low-priced store, which Amazon will ship directly from China.
Testing the Waters By Bazaar for the Indian Market
Back in February, Amazon tested the waters with Bazaar in the Indian marketplace, promising sellers hassle-free shipping, zero referral fees, and access to a huge customer base. The platform’s merchandise sales price will be less than 600 Indian rupees (about $7.2).
Amazon Low-price Store
The Amazon Low Price Store will offer white-label, low-priced items in the fashion, home, and lifestyle categories. Items must sell for $20 or less, weigh less than 1 pound, and have dimensions within the 1485-inch range. Additionally, the low-priced store program will allow merchants to price goods and manage inventory independently.
Products will be sent to the Amazon China warehouse and then directly shipped to the end customer, with a delivery time of 9-11 days. Clothing items with different SKUs can be mixed in one box, but non-clothing products cannot be mixed. Currently, the return policy for low-price store items below $3 is refund only, not return.
The Global E-commerce Platform Low-price War
Against the backdrop of global consumer downgrading, Amazon Low Price Store’s white-label products are likely to reach a broader group of consumers. Currently, the program is only open to the U.S. market.
Chinese domestic e-commerce sellers have varying opinions about this program. Many are curious and anticipate the new program on Amazon, but many are taking a wait-and-see approach.
As of today, Amazon has not publicly released relevant information. Mile International Logistics will continue to follow up on the specific details of the “Amazon Low Price Store” program for you.