Core Viewpoint - Temu, a cross-border e-commerce platform under Pinduoduo, faces challenges in collaborating with U.S. suppliers due to Amazon's dominant position in the e-commerce market [1][2]. Group 1: Pricing and Competition - U.S. sellers have informed Temu that the prices of brand products on its platform cannot be lower than those on Amazon, requiring substantial differentiation for lower pricing [1]. - Amazon exerts significant pricing power, actively lowering product prices and setting price floors for most items, making it difficult for smaller competitors like Temu to match [2]. - Temu has attempted to incentivize sellers with lower fees to list products on its platform, but sellers warn that Amazon will match any lower prices [2]. Group 2: Market Dynamics - Amazon's extensive sales network means many businesses rely on it for a significant portion of their sales, making price reductions on Temu potentially detrimental to their revenue [3]. - Amazon maintains that its selling partners can independently decide on inventory, product selection, and pricing strategies, while suppliers may bear the profit loss from Amazon's price reductions [3]. - Temu's strategy to achieve low prices includes emulating discount retailers by focusing on returned and discounted products, suggesting that competing in the premium product space may require selling non-branded items or offering significant discounts [3].