Amazon is trying to defend its kingdom against cheap Chinese rivals, and it thinks it has a plan

Core Insights - Amazon is launching a new discount section on its website to compete with Chinese rivals Temu and Shein, which are attracting customers with ultra-low prices [2][4] - The new marketplace will allow Amazon to ship unbranded items directly from China to the US, with delivery expected within nine to eleven days [3][4] - This strategy is part of Amazon's ongoing efforts to provide more selection, lower prices, and greater convenience to its customers [4] Company Strategy - Amazon's new discount section is seen as a direct response to the competitive pricing strategies of Temu and Shein [4] - The company has a history of using competitive pricing as a key strategy, having launched its private-label business, AmazonBasics, in 2009 [5] - Amazon's CFO noted that consumers are becoming more prudent with their spending, leading to increased demand for lower-priced products [5] Market Position - Amazon's market capitalization surpassed $2 trillion for the first time, positioning it alongside other major tech companies like Microsoft and Apple [6]