*Amazon.com is set to implement strict price caps for products on a new low-cost storefront it plans to launch.
According to Reuters, citing The Information, the price limits will allow merchants to charge no more than $8 for jewelry, $13 for guitars, and $20 for sofas, as detailed in communications from Amazon to sellers. The company provided a list of 700 items subject to these price restrictions.
Amazon is planning to ship orders directly from a facility in Guangdong, China, offering lower fulfillment fees to sellers using this new storefront. The move is part of Amazon’s strategy to launch a low-cost storefront to compete with discount platforms like Temu and Shein, which consumers love due to their extremely low prices.
“We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience,” an Amazon spokesperson told Reuters.
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