Amazon is reportedly working on a low-cost storefront to take on Temu

Amazon may be working on a second online retailer that can compete with Chinese retailer Temu’s ridiculously low prices. Information to see internal information sent to Amazon sellers with specific pricing information for this new storefront.

The store says the upper price limit is set at $8 for jewelry, $9 for bedding, $13 for guitars and $20 for sofas shipped from their fulfillment center in Guangdong, China under this “Low Cost Store.” According to the site’s sources, orders from this storefront will have slower timelines of nine to 11 days, but will also charge lower fulfillment fees to sellers. A seller will be charged between $1.77 and $2.05 to ship a 4-8 ounce item through the Low Cost Store, compared to $2.67 to $4.16 for an item of that weight shipped under Amazon fulfillment from a warehouse, according to Information.

Amazon has not set price limits on its anonymous online store, so this new platform will be a significantly different strategy from its usual approach. It is very consistent with the pricing policy followed by Temu, which was launched in 2022. In just two years, the bargain ecommerce platform has earned a reputation for selling items and questions about trustworthiness.