Amazon sets this ‘China condition’ for sellers on its website in the US – Times of India

Chinese sellers are reportedly caught in the crossfire as Amazon fights to maintain dominance in the ecommerce market in the United States (US). According to a report in South China Post, “Amazon.com has asked some Chinese cross-border merchants to stop offering goods at a cheaper price on rival platform Temu.” The report added that the local office of Amazon recently informed the managers of some top-selling Chinese brands that they should not list identical items at a lower price on Temu.
Adding fuel to the fire, Anker, a popular brand on Amazon, recently removed its listings from Temu’s US marketplace. This move fueled speculation that Amazon pressured Anker to prioritize its platform. However, Temu maintains its commitment to “fair and open competition” and said that it believes offering products across platforms benefits consumers with more choices and better deals.
Temu is owned by Chinese e-commerce giant PDD Holdings. The ecommerce website has gained popularity rapidly since its launch in the year 2022. Its aggressive pricing strategy is said to be attracting US consumers and threatening Amazon’s market share. Temu was the world’s third-most-visited online marketplace after Amazon and Alibaba Group Holding’s AliExpress, according to November data from Similarweb.

‘Punishment’ for sellers not following

Sellers who violate this rule risk losing their placement in Amazon’s coveted Featured Offer program, which gives products prime real estate on product pages. A Featured Offer, also known as the Buy Box, is prominently displayed at the top of an Amazon product page, alongside the “Add to Cart” and “Buy Now” buttons, making it easier for customers to purchase the featured item rather than the same product sold by other merchants.
Recently, Amazon launched Haul, an app section that sells goods priced under $20 aimed to take on competition from the likes of Temu and Shein.
Previously, Amazon excluded Temu from its price comparison system, potentially due to concerns about counterfeit products on the platform. However, with Temu’s growing success, Amazon seems to be changing tactics.

Sellers Caught in the Middle

This situation puts Chinese sellers in a difficult position. They need to balance lower prices on Temu’s platform, favored by the algorithm, with maintaining good standing on Amazon, crucial for reaching a wider audience. Some sellers are resorting to changing product pictures on Temu to avoid detection by Amazon.

Amazon denies

An Amazon representative denied the report and said that “sellers decide their selling strategy and set their own product prices in the Amazon store, and Amazon does not ask them to set certain prices.”