Amazon’s New FBA Multi-Unit Discount: A Rare Win for Seller Margins
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Amazon has announced the criteria for its new Low-Cost Store, a marketplace dedicated to shipping & selling unbranded, low-priced products directly to U.S. consumers from warehouses in China.
News of this initiative first surfaced in June when Amazon hosted an invite-only event for select sellers in Shenzhen. Shortly after, presentation materials were leaked, revealing that some sellers had already begun shipping inventory to Amazon’s Chinese warehouses. While still in the testing phase, Amazon is expected to launch the Low-Cost Store later this year.
According to the latest seller documentation, here’s how the Low-Cost Store will operate:
Amazon’s Low-Cost Store represents a shift in strategy by integrating the supply chain at the source in China rather than at the destination. The program starts in Guangdong, a hub for nearly half of Amazon’s Chinese sellers. Sellers ship products directly to Amazon’s Chinese warehouses, where U.S. consumers receive shipped products in 9-11 days without incurring tariffs due to the de minimis threshold.
Unlike Amazon’s FBA program, which focuses on fast domestic delivery, the Low-Cost Store emphasizes affordability. It does so by streamlining fees and removing the need for brand differentiation. The Low-Cost Store aims to attract price-conscious shoppers who prioritize savings over immediate delivery. It remains Amazon’s answer to competing with other low-cost platforms like Temu and Shein. The marketplace now offers U.S. consumers a digital dollar store experience with Amazon’s reach.
Source: Marketplace Pulse
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