Amazon Plans Budget-Friendly Marketplace in Response to Temu’s Success

Amazon is preparing to enter the ultra-low-price retail space with a new online marketplace aimed at challenging Temu’s dominance in bargain shopping. The Information reports that Amazon has begun sharing proposed pricing guidelines with potential merchants, setting strict price limitations across various categories: jewelry items must stay under $8, bedding under $9, guitars under $13, and sofas under $20.

Operating from a fulfillment hub in Guangdong, China, this new venture dubbed the “Low-Cost Store” will prioritize affordability over delivery speed, with customers expecting shipments within 9-11 days. To attract sellers, Amazon is introducing reduced fulfillment fees, with shipping costs for items weighing 4-8 ounces ranging from $1.77 to $2.05—significantly lower than their standard domestic rates.

This initiative represents a strategic shift for Amazon, moving away from its traditional retail model to embrace the extreme discount approach popularized by Temu, though questions about product standards and workforce conditions persist.