Amazon is set to make a significant impact on the ultra-fast fashion market, a sector currently led by Chinese giants SHEIN and Temu. This move marks Amazon’s entry into a rapidly growing market segment known for its extremely low prices and direct-from-China shipping model.
SHEIN and Temu reportedly ship up to 1 million packages daily to the US, highlighting Amazon’s notable absence from this profitable market. Now, the Seattle-based giant plans to leverage its extensive infrastructure and customer base to compete in this highly price-sensitive arena.
Industry analysts emphasise that price remains the key driver of consumer behaviour, often outweighing concerns about sustainability or customer service. Amazon’s renowned delivery capabilities may take a back seat as shoppers show a willingness to accept longer delivery times for significantly lower prices.
Jianlong Hu, CEO of Brands Factory, states that Amazon’s new discounted marketplace will focus on items priced under US $ 20 across fashion, home, and lifestyle categories. This model closely mirrors that of SHEIN and Temu, with Amazon handling shipping from its Chinese warehouses directly to US customers and taking a commission on sales.
This shift represents a departure from Amazon’s traditional support for small businesses and entrepreneurs, instead embracing SHEIN’s data-driven, rapid-production model that can bring designs from sketch to online listing in under two weeks.
Despite potential regulatory challenges, Amazon stands to gain significantly from this venture, leveraging its base of over 200 million US shoppers. Recent data from Omnisend indicates that 57 per cent of US consumers have made purchases on Temu in the past year, suggesting Amazon is well-positioned to capture a substantial share of this expanding market. Amazon also enjoys a higher trust rating than either SHEIN or Temu.
