Amazon Brings Temu Competitor App To 14 New Countries. These E-Commerce Stocks Are Falling.

Core Insights - Amazon has launched Amazon Bazaar, a low-cost shopping app targeting 14 countries in Asia, Africa, and Latin America, as part of its strategy to expand its e-commerce presence in competitive markets [2][4][5] - The app is an extension of Amazon Haul, which was previously introduced in the U.S. and parts of Europe and Asia, and aims to compete with platforms like PDD's Temu [3][4] - Amazon's stock experienced a decline of 1.3% to $239.78 amid a broader market downturn, while shares of competitors such as MercadoLibre and Sea Limited also fell [5][7] Amazon's International Strategy - The Bazaar app will offer products primarily priced under $10, with free delivery on minimum purchases, although delivery times may take up to a couple of weeks [5] - Amazon's international revenue grew by 14% year-over-year to $40.9 billion, although operating income fell by 8% to $1.2 billion [11] - The international division was previously unprofitable but showed signs of margin expansion in Q3 2023, excluding severance costs from layoffs [11] Competitive Landscape - E-commerce competition is intensifying in Latin America, with MercadoLibre defending its market share against Amazon and other competitors like Temu and Shein [5][6] - Shopee is also facing increased competition in Southeast Asia from Temu and Alibaba's Lazada [6] - Despite a strong start to the year, shares of MercadoLibre and Sea Limited have pulled back due to competitive concerns, with MercadoLibre down 20% from its mid-May highs [7][8]