Amazon is showing greater concern about China-based competitors Temu and Shein, compared to its longtime rivalry with Walmart and Target, and is now developing promotions on its reliability and fast delivery, according to a report.
E-tailers Temu and Shein, which offer cheap goods shipped directly from China, are growing rapidly. They have made significant strides in the US in less than two years, and there is evidence that they are impacting Amazon’s business, the Wall Street Journal reported.
Temu was launched in the US in September 2022, and in January recorded 51.4 million users, while Shein experienced an increase to 26 million users over the same period, up from 20.9 million, according to the report, which cites data from Sensor Tower.
On the other hand, Amazon’s users fell to 67 million from 69.6 million over the same period, said the report.
Despite their rapid growth however the e-tailers are facing significant challenges and thousands of customer complaints.
Temu is now defending itself against two lawsuits, and has received around 1,900 customer complaints with the Better Business Bureau (BBB), regarding undelivered packages and inferior quality of goods, among other issues.
The Post said that Temu has been working with the International Association of BBB to address these complaints since mid-2023, as confirmed by a spokeswoman for the organisation.
Earlier this month ChannelNews reported that Australian brands were facing increasing pressure from the e-tailers, as 2 million Australians shop on these platforms each month.
