Amazon Plans To Launch Discount Web Store: Reports

(RTTNews) - Amazon plans to launch a discount web store for selling low-cost apparel and other products directly shipped from warehouses in China, reports said citing a slide presentation in an invite-only meeting with Chinese merchants.

The move is said to help the e-commerce giant meet growing competition from discount online platforms Temua, a unit of PDD Holdings Inc., as well as online fashion retailer Shein.

The news comes as Amazon crossed the $2 trillion mark in market value for the first time on Wednesday.

In the meeting for third-party Chinese sellers, Amazon revealed its plan to introduce a new channel on its platform to sell fashion wear, household goods and other products that sell for less than $20 an item from China. They can weigh less than a pound, excluding edibles or liquids.

The Chinese sellers, who will be part of the new programme, would ship their products to an Amazon-run warehouse in China. The products then will be shipped onwards to its warehouses in the US.

As per the plan, the new direct-from-China discount store will appear in its own section of Amazon's website, which are now open only to invited sellers. The company will deliver ultra-low-cost goods directly from China in nine to 11 days.

Earlier this year, the company had begun to cut fees it charges merchants to sell low-priced clothing.