The Impulso Podcast E83: Will Amazon succeed in copying Temu?
11 snips
Jul 2, 2024 Amazon's new initiative targets low-cost, unbranded items from China, aiming to rival Temu and SHEIN. Inside information reveals a closed-door seller meeting underscored by cultural secrecy and exclusivity. Discussion highlights challenges in optimizing logistics for international sellers and contrasts Amazon's approach with Temu's consignment model. Skepticism looms over Amazon's ability to compete successfully, echoing historical rivalries, while the uncertain impact of this strategy raises questions about the future of e-commerce.
AI Snips
Chapters
Books
Transcript
Episode notes
Amazon's New China Fulfillment Model
- Amazon's new model involves sellers sending goods to warehouses in China for Amazon to handle cross-border and last-mile logistics.
- This lowers the skill barrier and risk for sellers who previously had to manage fulfillment directly in destination countries.
Amazon Targets Low-Cost Items
- Amazon's new discount service targets items below $20 with cross-border delivery in 9 to 11 days at 45% the FBA fulfillment cost.
- This pricing and delivery structure challenges traditional fulfillment costs that made selling low-cost items on Amazon unprofitable.
Amazon's Size vs Temu's Threat
- Amazon's market cap is about ten times that of Pinduoduo, owner of Temu, allowing more resource mobilization.
- Amazon has strong fulfillment infrastructure and customer base, making success possible if they commit.
