Amazon planning to launch discount store to compete with Temu and Shein

An Amazon employee passes by its logo on the opening day of the new distribution center in 2021. (Photo by SEBASTIEN BOZON/AFP via Getty Images)

Amazon will launch a new section on its site featuring discounts on clothes, household items, and other goods directly from Chinese warehouses. 

"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 said in a statement provided to FOX Television Stations. 

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According to the Wall Street Journal, Amazon would ship goods from China to customers in the U.S. within nine to 11 days of order placement.

This would mark a change in Amazon's shipping business model. Amazon sellers in China used the Seattle-based company’s Fulfillment by Amazon service to transport goods to warehouses in the U.S. before shipping them to customers.

The retail titan released a plan to sell clothing and household goods from China as it faces increased competition from online retailers Temu and Shein.

Temu has over 100,000 merchants in China that sell goods on its website. The online retailer entered the U.S. market in 2022 and gained popularity among consumers by offering discounted clothes and other goods.

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Temu's app was the most downloaded free application on Apple devices in 2023, eclipsing TikTok, Instagram, and YouTube.

Earlier this year, Temu, owned by the parent of Chinese e-commerce company Pinduoduo, announced it was opening its platform to U.S. and European sellers.

Shein was founded in China and connects with its customers through its app using its digital technology to respond quickly to patrons.  

The Associated Press contributed to this report. This story was reported from Washington, D.C.