Amazon is introducing strict price caps for its upcoming low-cost storefront. The company plans to fulfill orders directly from Guangdong, China, and will offer lower fulfillment fees for items sold through this platform.
This strategy marks a notable shift for Amazon, which has not traditionally imposed such limits on seller pricing, as it aims to compete with discount retailers like Temu and Shein amid a slowdown in retail sales growth.
As Amazon pivots to maintain its market share, the success of this low-cost storefront will be critical in countering the growing influence of discount competitors and attracting price-sensitive consumers.
