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Amazon launches Shein, Temu competitor with direct delivery from China

Amazon is coming after popular China-linked online retailers Temu and Shein with plans for a discount section offering unbranded clothing, home goods and everyday products shipped directly to overseas customers from warehouses in China.

The e-commerce giant recently laid out details of the upcoming new storefront in a closed-door meeting with Chinese retailers, according to The Information, which first reported the news.

According to the outlet, Amazon has told suppliers it will begin signing up merchants for the store this summer and begin accepting inventory sometime in the fall.

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Sellers who join the bargain site can determine their product selection and price and produce in small batches to test demand for any new products they plan to launch, the report added.

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AMZN AMAZON.COM INC. 197.85 +4.24 +2.19%

In response to the report, Amazon told FOX Business in a statement: “We’re always exploring new ways to work with our retail partners to delight our customers with more selection, lower prices and greater convenience.”

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It is unclear whether those shipments will be made using a US trade provision that exempts individual packages worth less than $800 from US customs duties, The Information reported.

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PDD PDD HOLDINGS INC. 131.94 -6.29 -4.55%

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E-commerce powerhouse Shein, which is seeking to expand its market share before going public, and PDD Group-owned e-retailer Temu depend on the expedited clearance process, which is available for direct-to-consumer shipments worth $800 or less.

Reuters contributed to this report.